The annual accounting report is binding on any company, regardless of its size, Legal form or economic activity. This report is a major tool for evaluating the financial position and the results of the company and plays an important role for both management, and for external stakeholders, investors, banks and state institutions. In order to be prepared correctly, it is necessary to collect and provide certain documents. In this article we will look at who they are, Why are they important and what they should contain.

Basic documents for the preparation of the annual accounting report

Turnover

This is the main document, capital, the assets and liabilities of the company for the reporting period. The turnover balance is fundamental for the company's financial status analysis and is the basis for the preparation of all other financial statements. In order for the balance sheet to be correct, is important to collect data from all analytical and synthetic accounts, used during the year.

Revenue and Expenditure Report

This document presents detailed information on the company's revenue and expenses during the reporting period. It includes revenue from basic activity, financial revenue, extraordinary revenue, as well as the relevant costs. This is the document, that shows whether the company has worked at a profit or loss.

Cash Flow Report

Cash Flow Report is a must -have for businesses, which are subject to audit, But it is recommended for all companies. It contains information on the proceeds and payments of cash, By dividing the activities into operative, Investment and financial. This report shows how the company manages its liquidity.

Documents for inventory of assets and liabilities

Inventory is a mandatory process, which should be held before the annual report is drawn up. Inventory documents include inventory of inventory, cars, facilities, real estate and other assets, as well as the duties of the company. They confirm the accuracy of accounting data.

Tax returns and reports

The tax return under the Corporate Income Tax Act (PPA) is an integral part of the annual accounting report. This statement contains information on taxable profit, Corporate tax due and tax relief used. It is also important to prepare VAT declarations also (If the company is registered under the VAT), as well as other related tax documents.

Profit distribution documents

If the company makes a profit, a decision of the General Assembly for its distribution is required. This decision must be documented and reflected in the accounting records.

Additional documents depending on the activity of the company

Depending on the specific activity of the company, additional documents may be required, such as:

• Loans and loan documents - Contracts, repayment plans, Paid Interest and Chiefs Extracts;
• Long -term assets - Purchase contracts, Protocols for commissioning, depreciation plans;
• Labor contracts and payrolls - in the presence of staff it is mandatory to prepare documents, related to the accrued and paid wages, as well as insurance;
• Invoices and payment orders - they prove revenue and expenses, performed during the year, and should be arranged and described correctly.

Process of collecting and organizing documents

Preparation and organization

Start by verifying current accounting status and identify missing documents. Organize the documents in chronological order or by categories (e.g.. Income, spending, assets).

Verification of accuracy

Make sure, that all documents match the data in accounting software. Check for errors, duplicated or missing records.

Consultation with an accountant

If you do not have an internal accountant, It is advisable to contact a professional or accounting firm. They will guarantee, that the report has been prepared in accordance with the legal requirements.

Penalties in gaps and errors

Impandation or incorrect submission of the annual report can lead to serious sanctions. Fines for violations vary depending on the seriousness of the errors and the turnover of the company. In addition to financial penalties, the lack of reporting can lead to a loss of trust on the part of partners and investors.

The preparation of the annual accounting report is complex, but extremely important process for any company. Collecting and organizing the necessary documents is the first and most important step towards its successful completion. In addition to meeting legal requirements, the correct report provides owners and managers with valuable information about the financial state of the business and helps to make strategic decisions. Therefore, it is recommended to approach this process with care and professionalism.