ZK ACCOUNTING SOLUTIONS LTD

Executive Summary

ZK Accounting Solutions Ltd, a micro-entity in the bookkeeping sector, shows improving financial strength with solid liquidity and a clean compliance record. The company’s small but positive net assets and current assets position support an approval recommendation for credit. Ongoing monitoring should focus on maintaining working capital and governance stability as the business grows.

ZK ACCOUNTING SOLUTIONS LTD - Analysis Report

Company Number: 13010891

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: APPROVE
   ZK Accounting Solutions Ltd demonstrates a stable financial position with positive net current assets and net assets increasing over the last two years. The company is active, compliant with filing deadlines, and has a sole director and 75-100% shareholder with direct control, indicating clear management oversight. The business operates in a low-risk sector (accounting and bookkeeping) with modest but improving financial strength, suitable for micro-scale credit facilities. There are no adverse indicators such as overdue filings, director disqualifications, or liquidity concerns.

2. Financial Strength:
   The balance sheet shows net current assets of £3,574 and net assets of £2,674 as of 30 November 2023, up from £2,414 and £1,964 respectively in 2022. This growth, albeit on a small scale, reflects an improving equity base and prudent management of short-term liabilities (£434 current liabilities vs. £4,008 current assets). Share capital is minimal (£100), typical of micro entities. No long-term liabilities or fixed assets data provided, but total assets less current liabilities equals net current assets, indicating no material long-term debt.

3. Cash Flow Assessment:
   The company’s liquidity position is sound with a current ratio approximately 9.2x (current assets/current liabilities), indicating strong short-term liquidity and working capital management. The increase in accruals and deferred income from £450 to £900 suggests some income recognition timing but does not materially affect liquidity. The company employs 2 staff on average, suggesting controlled operating costs. No cash flow statement was provided, but strong net current assets imply adequate cash or near-cash resources to meet obligations.

4. Monitoring Points:

• Continue monitoring net current assets and net asset growth to ensure sustained financial health.
• Watch for any increase in current liabilities or accruals that could pressure liquidity.
• Monitor director’s compliance and any changes in ownership or control that could affect governance.
• Ensure ongoing timely filing of accounts and confirmation statements to avoid regulatory risk.
• Evaluate profitability trends once profit and loss accounts become available to assess earnings stability.