How to Fill in the Balance Sheet & Profit and Loss Reports on WeFile

Filing your company's annual accounts doesn't have to be stressful. WeFile's step-by-step filing wizard walks you through the entire process — from confirming your company details all the way to submitting your CT600 to HMRC and your accounts to Companies House. In this tutorial, we'll focus on the two most important financial steps of the wizard: the Profit & Loss report (Step 2) and the Balance Sheet (Step 3). We'll explain every field, show you what the numbers mean, and share practical tips to help you get it right first time. Before you begin: Make sure you've already added your company and created a new filing for the correct accounting period. If you haven't, head to your dashboard, click New Filing, select your company, and choose the period you're filing for.

When you first enter the filing wizard, you'll see Step 1 — Company Details. This screen confirms your company name, company number, registered address, and the accounting period (start and end dates). You'll also see a toggle labelled Dormant Company Return. Switch this on only if your company had no significant accounting transactions during the period. For dormant companies, all financial values in the following steps should be zero — and WeFile will disable the income and expense fields for you automatically. If your company traded during the period, leave the dormant toggle off and click Next Step to proceed to the Profit & Loss report.

The Profit & Loss (P&L) report summarises your company's income and expenses for the accounting period. It shows whether your company made a profit or a loss, and WeFile automatically calculates the corporation tax due. Here's a breakdown of every field you need to complete:

Turnover (£) This is your company's total revenue from its main trading activities during the period. It includes sales of goods, services rendered, and any other operating income. Do not include VAT if your company is VAT-registered — enter the net figure. Example: If your company invoiced clients a total of £85,000 during the year, enter 85,000. Interest Income (£) Enter any interest your company earned on bank accounts, savings, or investments during the period. For most small companies, this will be a small amount or zero. Example: Your business savings account earned £120 in interest — enter 120. Once you've entered both values, WeFile displays your Total Income automatically (Turnover + Interest Income).

Cost of Raw Materials & Consumables (£) This covers the direct costs of goods your company sold or materials consumed in providing your services. Think stock purchases, raw materials, packaging, and similar direct costs. Example: A retail business that purchased £32,000 of stock during the year enters 32,000. Staff Costs (£) Include all employment-related costs: gross wages, salaries, employer's National Insurance contributions, pension contributions, and any staff benefits. If you're a director paying yourself a salary, include that here too. Example: Director salary of £12,570 + employer NI of £620 = enter 13,190. Depreciation & Amounts Written Off (£) This is the accounting charge for the wear and tear of your company's fixed assets (equipment, vehicles, computers, etc.) over their useful life. If you capitalised any assets, enter the annual depreciation charge here. Example: A laptop costing £1,200 depreciated over 3 years = £400/year — enter 400. Other Charges (£) This is a catch-all for all other business expenses not captured above. Common examples include:   • Office rent and utilities   • Insurance premiums   • Professional fees (accountant, solicitor)   • Travel and subsistence   • Marketing and advertising   • Software subscriptions   • Telephone and internet Example: Office rent £6,000 + insurance £800 + accountancy fees £500 + software £1,200 = enter 8,500. WeFile then calculates your Total Expenses automatically.

Once you've entered all income and expense figures, WeFile instantly computes three key figures: Profit Before Tax Total Income minus Total Expenses. This is your company's operating profit (or loss if negative) before any tax is deducted. Corporation Tax WeFile calculates this automatically based on current UK corporation tax rates:   • 19% on profits up to £50,000 (small profits rate)   • 25% on profits of £250,000 or more (main rate)   • A marginal relief rate applies for profits between £50,000 and £250,000 You don't need to calculate this yourself — WeFile handles it for you. Profit for the Year Profit Before Tax minus Corporation Tax. This is the bottom line — the amount of profit retained by the company after tax. Tip: If your company made a loss, the corporation tax will be £0. Losses can be carried forward to offset against future profits.

If you've previously filed with WeFile for the preceding accounting period, the wizard will show a two-column layout — the current period on the left and the previous period on the right. The previous period figures are pre-populated from your last filing, but you can edit them if needed. This is useful for correcting prior year comparatives or if your previous accounts were prepared differently. The period dates are shown in a header bar at the top of the form (e.g. "Year to 31/03/2026" and "Year to 31/03/2025") so you always know which column you're entering data into.

The Balance Sheet is a snapshot of your company's financial position at the end of the accounting period. It shows what the company owns (assets), what it owes (liabilities), and the shareholders' equity. The golden rule: The Balance Sheet must balance. That means Total Net Assets must equal Total Capital and Reserves. WeFile will warn you if the sheet doesn't balance and will prevent you from continuing until it does. Let's go through each section:

Tangible Assets (£) These are physical assets your company owns that have a useful life of more than one year. Examples include office equipment, computers, vehicles, machinery, and furniture. Enter the net book value (original cost minus accumulated depreciation). Example: You bought equipment for £5,000 and have depreciated £2,000 so far — enter 3,000. Investments (£) Any long-term investments your company holds, such as shares in other companies or long-term deposits. Most micro-entities will enter zero here. Example: Your company holds £10,000 in shares of a subsidiary — enter 10,000.

Debtors (£) Money owed to your company that you expect to receive within 12 months. This includes unpaid customer invoices (trade debtors), prepayments, and other receivables. Example: You have £4,500 in outstanding customer invoices at year end — enter 4,500. Cash at Bank and in Hand (£) The total cash your company holds at the balance sheet date. Add up all business bank account balances plus any petty cash. This is usually the easiest figure to verify — check your bank statements for the last day of your accounting period. Example: Current account balance £12,340 + savings account £5,000 = enter 17,340.

Creditors: Amounts Falling Due Within One Year (£) Money your company owes that must be paid within 12 months. This includes unpaid supplier invoices (trade creditors), corporation tax payable, PAYE/NI owed, accrued expenses, and short-term loans. Example: Unpaid supplier invoices £3,200 + corporation tax due £2,800 + credit card balance £500 = enter 6,500. After entering this, WeFile calculates:   • Net Current Assets = Current Assets − Creditors Within One Year   • Total Assets Less Current Liabilities = Fixed Assets + Net Current Assets Creditors: Amounts Falling Due After More Than One Year (£) Long-term debts that won't be fully repaid within 12 months. Examples include bank loans, director's loans to the company, and hire purchase agreements with terms beyond one year. Example: A business loan with £15,000 remaining — enter 15,000. WeFile then calculates your Total Net Assets (Liabilities) = Total Assets Less Current Liabilities − Creditors After One Year.

Called Up Share Capital (£) The total nominal value of shares issued by your company. For most small limited companies, this is £1 (one ordinary share of £1). Check your company's confirmation statement or articles of association if unsure. Example: 1 ordinary share at £1 — enter 1. If you issued 100 shares at £1 each, enter 100. Retained Earnings (£) The cumulative profits (or losses) your company has retained since incorporation, after all dividends paid out. This is the "balancing figure" — it should make Total Capital and Reserves equal Total Net Assets. Practical tip: If your balance sheet doesn't balance, adjust Retained Earnings until the two totals match. Retained Earnings = Net Assets − Share Capital. Example: Net Assets are £8,841 and Share Capital is £1 — Retained Earnings should be 8,840.

WeFile shows you both:   • Total Net Assets (Liabilities) — the top half of the balance sheet   • Total Capital and Reserves — the bottom half These two figures must be identical. If they're not, you'll see a red warning message: "Balance sheet does not balance — Total net assets (liabilities) must equal Total capital and reserves." The Save & Continue button will be disabled until the sheet balances. Quick troubleshooting:   1. Double-check your Cash at Bank figure against your actual bank statements on the last day of the period.   2. Verify that Creditors Within One Year includes your corporation tax liability (shown in Step 2).   3. Ensure Retained Earnings accounts for the current year's profit/loss from Step 2, plus any brought-forward retained earnings from the previous year, minus any dividends paid.   4. If you're still stuck, use this formula:       Retained Earnings = (Previous year retained earnings) + (Current year profit after tax) − (Dividends paid)

Let's walk through a simple example for a small consulting company: Profit & Loss:   • Turnover: £60,000   • Interest Income: £50   • Cost of Raw Materials: £0   • Staff Costs: £13,190 (director salary + employer NI)   • Depreciation: £400   • Other Charges: £8,500   • Total Income: £60,050   • Total Expenses: £22,090   • Profit Before Tax: £37,960   • Corporation Tax (19%): £7,212.40   • Profit for the Year: £30,747.60 Balance Sheet:   • Tangible Assets: £3,000   • Investments: £0   • Debtors: £4,500   • Cash at Bank: £35,000   • Creditors Within 1 Year: £7,212 (corporation tax due)   • Creditors After 1 Year: £0   • Total Net Assets: £35,288   • Share Capital: £1   • Retained Earnings: £35,287   • Total Capital and Reserves: £35,288 ✓ Balanced! Once your balance sheet balances, click Save & Continue to proceed to the Review step. Top Tips for Getting It Right: 1. Gather your records first. Before starting the wizard, have your bank statements, invoices, receipts, and previous year's accounts to hand. 2. Use the period end date. All balance sheet figures should reflect the position on the last day of your accounting period — not today's date. 3. Don't forget corporation tax as a creditor. The tax calculated in Step 2 is usually unpaid at the balance sheet date, so include it in Creditors Within One Year. 4. Save regularly. WeFile saves your progress each time you click Save & Continue. You can come back and resume the wizard at any time from your filings dashboard. 5. Dormant companies keep it simple. If your company is dormant, all P&L figures should be zero. The balance sheet typically shows just Share Capital (e.g. £1) and matching Retained Earnings (e.g. £0 if newly incorporated, or carried forward from prior years). 6. Check previous period figures. If comparatives are shown, make sure they match your previously filed accounts. Inconsistencies can trigger queries from Companies House. 7. Review before submitting. Step 4 shows a full summary of everything you've entered. Take a moment to double-check all figures before proceeding to submission. What happens next? After completing the Balance Sheet, you'll move to Step 4 — Review, where WeFile shows a comprehensive summary of your company details, Profit & Loss, and Balance Sheet. From there, you can proceed to submit your CT600 to HMRC and your annual accounts to Companies House — all from within the WeFile platform. If you have questions or need help, visit our Help Centre or open a support ticket from your dashboard. We're here to help you file with confidence. WeFile — Corporation tax filing, simplified.