A company carries many responsibilities and must be run with firm, safe and honest command. The annual accounts are a still photo that reflects the financial situation and helps plan the future actions of a company.

The accounts must faithfully reflect the state of your company to help you succeed in your purposes. Laziness and misinformation are bad travelling companions, and you must refrain from manipulating data in accounting if you want it to be of any use to you.

How will you be able to get ahead of problems if you don’t know the status of your business?

Refrain from thinking of them as an obligation but an opportunity to get to know your company better. That is why annual accounts are so important and must be done with dedication, honesty and interest.

Basic requirements for annual accounts

For the Tax Agency to accept your company’s annual accounts, you must meet fundamental requirements. Use the necessary time and do it always complying with the following points:

  • Reliability: You must be very careful and make sure that all the data included is correct. Manipulating the accounts is useless since you will be deceiving yourself deep down. It would help if you achieved maximum reliability to take advantage of the work done.
  • Complete: The objective is to take a real photo of the state of your company, and it should be as meticulous as possible. Be sure to include all the information needed to know all aspects of your company in detail. Do not omit any information, and make sure everything is obvious.
  • Easy to assimilate: When searching for the reality of your company, it is not advisable to blur it or try to make it complex. It is about being easily understood and offering the information as clearly as possible. Complicating things only creates confusion. Record the information without leaving room for doubt, and take the opportunity to draw your conclusions.

Once all the requirements have been met, you only have to know the parts that make up its presentation.

What should the annual accounts include?

It is advisable to leave everything to improvisation, and you must use all the resources at your disposal to present them correctly. In the presentation, you must include the following:

  • Balance Sheet: It is the first document that is part of the accounts. You must include a statement reflecting the assets and liabilities of the company and its net worth.
  • Income statement: It includes what is generated by the company, segmented by exploitation, financial, and operations carried out. It is more concrete than the balance sheet and delves into each aspect.
  • Changes in assets: Serves as a complement to the previous two and faithfully reflects the financial status of the company. It is more generic but equally effective.
  • Cash changes: Used to know the liquidity of the company. Reports the monetary changes reflected in the balance sheet to know the movements generated in cash.
  • Memory: The last part but as important as the others. It is used to explain the rest of the company’s financial statements. It serves as a complement to close the accounts through conclusions.

Remember to present all the parts that make up the accounts to be considered delivered. There are some common problems that you should keep in mind when preparing them.

Most common problems when presenting annual accounts

You must treat problems with the same dedication you have dedicated to preparing the accounts. You will have to rectify everything until you achieve maximum reliability of your accounts. Among the problems that may arise are:

  • Change of criteria: In the case of changing accounting criteria or finding an error, it must be rectified retroactively. This implies changing all aspects it affects, even if they are part of the past.
  • Change of accounting estimate: If you want to change the type of accounting estimate, you will have to apply the change to the current year and the corresponding net worth item.
  • Post-closing operations: In some cases, once the accounts are closed, operations arise that must be included. There are two very different types: predictable and unpredictable. The former, as they are foreseen, must be reflected in the accounts. Since the latter are impossible to predict, it is not necessary to include them, but you can reflect them in your memory to leave a record of it.

Now, you can present your company’s annual accounts with the security of controlling everything.

If you need to know more, contact our tax advisors.

SEND ENQUIRY