Annual accounts and SMEs

In a new attempt to bring accounting advice closer to everyone, today we are talking about annual accounts and SMEs. It is an interesting topic for those with a small business or company.

We will tell you about the changes that have occurred during the past year and become effective in 2017 so that you can apply them if it suits your company.

Although they come into force this year, it is essential to know that the changes can be applied retroactively to 2016.

Annual Accounts

We already told you about the annual accounts a while ago. However, today, we will inform you about the new developments that we could not discuss at the time.

The significant change you will find this year is that from the 2016 annual accounts, companies or businesses that can present the abbreviated report and balance sheet are not required to show the “Statement of Changes in Net Assets”.

Companies that use the SME Accounting Plan model will not have to present it either. From now on, the document will be considered voluntary.

If you want, you can present it, but you are not required to present it if you do not want to. That decision is left up to the companies.

Cash Flow Statement

As in the case we have discussed previously, SMEs are no longer required to present the “Cash Flow Statement” document.

We applaud these legislative changes from here, which are making life easier for SMEs and small businesses.

Everything that helps companies seems reasonable to us. Any help is good for fueling the economic recovery of companies. However, there are more notable developments, which we will tell you about below.

PGC-Pymes

One of the major developments that we find very notable is Since 2016, all companies that meet any of the following circumstances for at least two consecutive years will also be able to apply the PGC-Pymes:

• The total assets are at most 4 million euros.
• The net amount of their annual turnover is less than 8 million euros.
• The number of employees in the company is at most 50 employees.

If your company meets the requirements, you can apply the PGC-Pymes without problems. But be careful; you must meet these conditions to apply it. It would help if you remembered that complying with the law is vital to avoid problems for your company.

Final conclusions

As you can see, the changes are exciting, and you can take advantage of them if your company meets the requirements.

Remember that if you meet them, you will not have to present the “Statement of Changes in Net Assets”, and if you are part of the aforementioned assumptions, you can apply the PGC-Pymes.

The changes are retroactive and can be applied both this year and in 2016.

Is this clearer for you? Can you apply the new features to your business?

We hope that you have a clearer understanding of the new features in annual accounts and SMEs.