QK ACCOUNTS LTD

Executive Summary

QK ACCOUNTS LTD shows promising financial health for a newly incorporated company with positive net assets and working capital. While the company is financially stable at present, strengthening cash reserves and detailed financial monitoring are recommended to support sustainable growth. Early attention to liquidity management and capital structure will enhance resilience as the business evolves.

QK ACCOUNTS LTD - Analysis Report

Company Number: 14873698

Analysis Date: 2025-07-20 18:07 UTC

Financial Health Assessment for QK ACCOUNTS LTD
Date of Assessment: June 2024

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1. Financial Health Score: B

Explanation:
QK ACCOUNTS LTD displays a solid initial financial footing for a company in its first full financial year. The company holds positive net assets, demonstrates healthy working capital, and maintains a clean balance sheet with no long-term liabilities. However, as a newly incorporated entity (May 2023) with limited operational history and modest asset base, its financial resilience and growth potential have yet to be fully tested. The "B" grade reflects a good starting position but with room to strengthen liquidity and operational cash flow in future periods.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	9,019	Tangible assets primarily in plant and equipment, indicating initial investment in operational capability.
Current Assets	5,479	Includes cash (£914) and debtors (£4,565), showing funds expected to be collected soon.
Current Liabilities	2,754	Short-term obligations mainly taxes and social security payable within one year.
Net Current Assets (Working Capital)	2,725	Positive working capital suggests good short-term liquidity — sufficient to cover upcoming liabilities.
Net Assets (Shareholders' Funds)	11,744	Indicates overall company value after debts; positive and healthy for a new business.
Share Capital	1	Minimal share capital, typical for small private companies.
Profit and Loss Account Reserve	11,743	Retained earnings/profit accumulated to date; positive sign of early profitability or capital injection.

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3. Diagnosis: Financial "Health" Overview

QK ACCOUNTS LTD exhibits the "vital signs" of a healthy financial organism in its infancy. The company’s balance sheet shows no signs of financial distress:

• Healthy Cash Flow Indicators:
  While cash on hand is modest at £914, the significant debtors balance (£4,565) indicates expected incoming cash, akin to a patient with stable but yet-to-be-realized energy reserves. Positive working capital confirms the company can comfortably meet short-term liabilities without liquidity strain.

• Asset Base and Capitalization:
  Fixed assets of £9,019 reflect investment in tangible resources necessary for operational activity. The minimal share capital (£1) is typical for a small private company but places greater reliance on retained earnings and operational cash flow for funding growth.

• Profitability and Reserves:
  The Profit and Loss reserve of £11,743 suggests early profits or owner’s capital contributions, which bolster the company's financial resilience. However, absence of detailed turnover or profit figures limits a deeper profitability analysis.

• Risk Factors & Considerations:
  As a new company (less than 1 year old), QK ACCOUNTS LTD has limited financial history to predict stability under various market conditions. The single director and sole person of significant control implies centralized decision-making, which can be efficient but also concentrates risk.

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4. Recommendations: Improving Financial Wellness

• Enhance Cash Reserves:
  Increase cash liquidity by accelerating debtor collections and managing payment terms to ensure a stronger cash buffer. A healthy cash flow is like maintaining vital energy reserves to handle unexpected expenses or opportunities.

• Monitor and Manage Tax Liabilities:
  The current liabilities are solely taxation and social security related (£2,754). Ensure timely payments to avoid penalties and preserve creditworthiness.

• Build Capital Base Strategically:
  Consider increasing share capital or securing additional funding to support growth initiatives and provide a financial cushion.

• Establish Detailed Financial Reporting:
  Begin tracking turnover, gross margins, and operating expenses rigorously to detect early symptoms of financial stress or inefficiency.

• Plan for Growth and Contingencies:
  Develop a financial plan forecasting cash flow, capital needs, and profitability targets. Just as a doctor advises lifestyle changes to prevent illness, proactive financial planning will help sustain long-term health.

• Diversify Governance and Controls:
  Consider appointing additional directors or advisors to broaden oversight and reduce dependence on a single individual’s decisions.

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