Read the accounts.
Keep the limits visible.
Company accounts can help you ask better questions about a business. Start by checking what the document covers and which figures it actually discloses.
1. Check the identity and dates
Match the company number, legal name and document type. Record the accounting period and the balance-sheet date separately from the date the document was filed. A filing date does not make the financial figures current.
Before comparing businesses, check whether the figures cover a single entity or a group, their currency and whether amounts are shown in pounds or thousands. Different period lengths make simple revenue comparisons unreliable.
2. Know which statement you are reading
| Statement | What to look for | Common mistake |
|---|---|---|
| Profit and loss account | Sales, expenses and profit or loss over a period | Treating profit as the closing cash balance. |
| Balance sheet | Assets and liabilities at a particular date | Reading assets as annual revenue. |
| Notes to the accounts | Accounting policies and detail behind the figures | Ignoring qualifications or a changed basis. |
3. Leave missing figures unknown
Current GOV.UK guidance says eligible small companies and micro-entities can omit their profit and loss account from the Companies House filing. A public filing may therefore not disclose sales or profit. Missing turnover is not zero turnover, and it is not a basis for calculating profit margin.
Check the current Companies House filing guidance before relying on filing requirements. This guide was reviewed on 11 November 2026.
4. Make the comparison explicit
Write each observation as “figure + unit + period + source”. For example, “£250,000 current assets at 31 March, page 3 of the filed accounts” is more useful than “the business is strong”. That illustrative number is not a conclusion about liquidity, growth or creditworthiness.
When sales and cost figures are available on a matching basis, use the margin calculator. If they are not, record the gap and ask for suitable management information instead of estimating silently.
5. Turn observations into questions
Ask what changed, whether the comparison uses consistent definitions and what evidence would change your decision. Filed accounts are one input; they do not establish today’s trading position or verify a commercial opportunity.
Keep the source beside your notes in the competitor analysis worksheet. For decisions requiring an accounting or legal opinion, use a suitably qualified adviser.
Official sources
- GOV.UK: preparing annual accounts, for the purpose and contents of statutory accounts.
- Companies House: preparing and filing accounts, for public filing requirements and exemptions.
Prepared by Treleto · Reviewed 11 November 2026
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