A partnership is a type of business where two or more people share ownership. Each partner contributes something — money, skills, or effort — and in return, they share the profits and losses of the business.
There are a few types:
- Ordinary (general) partnership – All partners manage the business and share liability.
- Limited partnership (LP) – Some partners contribute money but don’t take part in running the business.
- Limited liability partnership (LLP) – Each partner’s personal liability is limited, like a company.
How to Do Your Accounts (for Partnerships)
When you run a partnership, you must keep accurate financial records. Here’s what that includes:
- Record all income and expenses — every sale, bill, and payment.
- Keep receipts, invoices, and bank statements — for at least 5–6 years.
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Draw up annual accounts, which usually include:
- Profit and loss statement
- Balance sheet
- Each partner’s share of the profits
- File a partnership tax return (SA800) with HMRC each year (in the UK), and each partner also files an individual tax return showing their share of profits.
- Distribute profits according to the partnership agreement.
Thinking of Starting a Partnership? Here’s How to Get Your Accounts Right!
Running a business with a partner can be exciting — but it also means sharing financial responsibilities. Keeping clear, accurate accounts protects both of you and helps your business grow with confidence.
At Rockfast, we help partnerships set up their accounts properly, stay compliant, and understand their numbers. Whether you’re just starting out or looking to tidy up your books, we’ve got you covered.
✅ Partnership setup advice
✅ Bookkeeping & tax returns
✅ Profit sharing & planning support
📞 Message us today to find out how we can help your partnership run smoothly and stress-free!
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