Accounts notes: a note-by-note guide

The notes to the accounts are the numbered paragraphs and tables that follow the balance sheet. They explain how the figures were prepared, break totals down into their parts (for example, what makes up "Debtors"), and disclose things that are not on the balance sheet at all, such as guarantees, commitments and the number of employees. Companies House expects them, and which notes you need depends on the accounting framework the company reports under.

This guide explains the notes in general and how the Notes screen in Tax Optimiser works. Every note has its own article too. The table further down links to each one.

What the notes are for

The balance sheet and profit and loss account give totals. The notes give the detail behind those totals and any information the law or the accounting standard requires that does not fit into a total. Typical notes cover:

• Basic company facts: the company name, legal form, registration number and registered office (Statutory Information).
• How the accounts were prepared: the accounting standard followed and the accounting policies, meaning the rules the company uses for things like depreciation and turnover.
• Breakdowns of balance sheet lines: fixed asset movements, debtors, creditors, share capital and so on.
• Items not on the balance sheet: commitments, contingent liabilities (possible obligations that depend on a future event), guarantees and advances to directors.
• Other required facts: the average number of employees, related party transactions and the controlling party.

FRS 105 vs FRS 102 Section 1A

The framework is set in the period settings (Accounts Type). It decides which notes the Notes screen offers. For a fuller comparison of the two frameworks, see the statutory accounts guide.

The four FRS 105 notes are:

1. Advances and credit, including terms and interest rates: advances and credits to directors, and guarantees given on their behalf.
2. Guarantees and other financial commitments: capital commitments, other financial commitments and contingent liabilities.
3. Average number of employees.
4. Free Text: one note with a heading you choose.

FRS 102 Section 1A accounts have a much longer list. Some notes are required for every small company, some only apply when the company has the item in question (investment property, a company limited by guarantee, provisions), and some are disclosures the standard encourages rather than requires. Each note article says which applies. For a walkthrough of a full Section 1A notes section, see FRS 102 Section 1A notes. For micro-entities, see FRS 105 notes.

How the Notes screen works

1. Open the notes. Open the accounting period and choose View Accounts. In the left Actions menu choose Notes. The Notes window opens.
2. Find a note. The left-hand side lists every note category, each with its sections underneath. Many notes have a main section and an "Additional note for …" section for extra wording. Type in the Search notes… box to filter the list by note or section name.
3. Select a section. Click a section to open its editor on the right. The note name appears above the section title.
4. Switch it on or off. Each section has Show this note in the accounts with Yes and No buttons. When it is set to No the editor is greyed out and nothing from that section prints. Most notes start switched off. The exceptions are the Average number of employees note, and notes that come with default wording (such as Compliance with Accounting Standards), which switch on with that wording the first time the accounts load.
5. Fill it in. Type the wording, enter figures, or choose Use Template (see below).
6. Check the guidance. Learn more about this note, top right, opens the Help Centre article for the note you are on.
7. Save. Save changes saves every note at once and rebuilds the accounts preview on the View Accounts page. Close leaves without saving.

Text sections

Most "Additional note" sections, and notes such as Turnover, Contingent liabilities or Controlling party, are a single text box. What you type prints as plain text under the note heading.

Table (structured) sections

Notes such as Tangible fixed assets, Debtors, Creditors and Taxation are tables. Their figures come from your trial balance, and cells filled from the trial balance are read-only. To change one, correct the trial balance (see importing a trial balance) rather than the note. In the fixed asset notes, blank cells that the trial balance does not fill can be typed in, and what you type is saved with the accounts. A few table notes, such as Share capital, Operating lease commitments and Loans to directors, are entered by hand. Each note article says which figures come from where.

Where the period has a comparative year (and comparatives are not excluded in the period settings), table notes show the prior year column too.

Wording templates

Many text sections offer ready-made wording. Click Use Template (top right of the section, shown only when templates exist) to open the Note Templates list, then click Use next to the one you want.

Templates contain placeholders in double curly brackets, such as {{LoanAmount}}. Some are filled in automatically:

• the company name;
• the period start and end dates (for example "31 March 2026");
• the director’s name, when the company has one current director. If it has more than one, you choose from a drop-down list.

Any other placeholder is asked for in a Fill in template details window before the wording goes in. Enter each value and click Save changes. Type amounts without the £ sign, because the template already includes it.

Applying a template replaces whatever is already in that box. Once it is in, the wording is ordinary text that you can edit freely. Remember to set Show this note in the accounts to Yes if the section is still switched off.

Firm templates

Accountancy practices can add their own wording under Accountant > Note Templates. Your firm’s templates appear in the Use Template list alongside the standard ones for the clients you manage, and they use the same placeholder prompts.

Numbering and how notes print

Notes print in the order of the list, numbered 1, 2, 3 and so on. Switched-off notes are skipped and the numbering closes up, so you never get gaps. A note’s sections (for example the main table and its "Additional note") print together under one heading. In FRS 102 Section 1A accounts, note 3 is always Accounting Policies when any policy is in use. Policies are completed separately; see Accounting policies.

The notes are included in both the full accounts and the filleted accounts filed at Companies House. Filleting leaves out the profit and loss account and the directors’ report, not the notes. See full vs filleted accounts.

Every note, at a glance

"From the trial balance" means the figures are read from your trial balance and cannot be overtyped. "Typed in" means you enter the wording or figures yourself, often with a template. "Mix" means some figures come from the trial balance and others are entered in the note. Statutory Information is completed automatically from the company and period details.

Where to go next

• Accounting policies: the policies note (FRS 102 Section 1A)
• Statutory accounts guide: FRS 105 vs FRS 102 Section 1A
• FRS 102 Section 1A notes: the full notes section in one walkthrough
• FRS 105 notes: the four micro-entity notes
• Statutory Information: the first note