Want to end your financial year with a bang? Preparing the annual financial statements may sound like a tedious task, but with the right guidance and a little support, it can be child's play. In this article, you'll find out how to successfully complete your annual financial statements step by step. And the best part? We'll show you how fileee can help you.
But before we go into detail, let's briefly clarify what the annual financial statements are and why they are so important. The annual financial statement is a financial report that is prepared at the end of the financial year. It is a crucial part of a company's financial planning and tax return. The annual financial statement gives you an overview of your income and expenditure, your overall financial situation and helps you to calculate taxes correctly. Whether you are running a business or managing your personal finances, preparing the annual accounts properly is crucial to making smart financial decisions.
The first step to successfully preparing your annual financial statements is to collect all relevant documents. This includes, for example, bank statements, invoices, receipts, payslips, contracts and other financial records. It is important that you organize all the information neatly and systematically to make the subsequent process easier.
If you're still working with paper documents, it's time to say goodbye to them. The fileee DMS offers you an efficient solution for organizing and archiving your documents. First, scan all relevant receipts that are required for your annual financial statements. fileee then enables you to store your documents securely and encrypted and offers you functions such as automatic text recognition (OCR), which makes texts in scanned documents searchable.
Assign tags and organize your documents uploaded to fileee without a complicated folder structure. Use the tags or the full-text search to find your documents quickly. This saves you having to rummage through your documents and you always have your documents to hand when you need them. fileee also allows you to collaborate with your colleagues in an uncomplicated and location-independent way and sharing your documents - with your tax advisor, for example - is super easy.
Once you have collected all the documents, it's time to check your bookkeeping and reconcile the accounts. Make sure that all income and expenses have been recorded correctly and that your accounts reflect the actual financial status of your company. If there are any discrepancies, clarify them as soon as possible.
The inventory is an important step in the preparation of the annual financial statements, especially for companies that trade in goods. It involves taking stock and valuing a company's assets and liabilities at the end of the financial year. Check your inventory and compare it with the book values. All inventory results should be carefully documented, including the count logs, valuations and any discrepancies. This documentation serves as proof of the accuracy and completeness of the inventory and forms the basis for your annual financial statements.
Once you have completed all the preparatory steps, you can start preparing the actual annual financial statements. This usually consists of a profit and loss statement (P&L), a balance sheet and notes. The income statement shows you your company's income and expenses, while the balance sheet provides an overview of the assets and capital situation. The notes provide additional information and explanations of the figures.
In order to prepare your annual financial statements accurately, it is important to take tax aspects into account. Find out about the applicable tax regulations and make sure that your annual financial statements meet the requirements. If necessary, you should consult your tax advisor to ensure that your tax return is correct and complete.
Tip: You can easily share your documents with other people via fileee Spaces. For example, you can create a Space with all the important documents you need for your tax return and, ideally, send a team invitation to your tax firm. This way, your tax advisor always has access to your documents and can even download them. The chat in the respective fileee Space can be used for quick and uncomplicated communication.
The exact deadline for preparing the annual financial statements depends on various factors, such as the legal form of your company and the legal regulations of the respective country. Corporations such as limited liability companies or public limited companies have a statutory deadline of 3-6 months after the end of the financial year to prepare the annual financial statements. Smaller companies or sole proprietorships often have a little more leeway and must prepare their annual financial statements within 6-9 months. Those who submit their annual financial statements to the tax office together with their tax return normally have until July 31. However, different deadlines apply from 2019 to 2024 due to the coronavirus pandemic. For example, your tax return for 2022 does not usually have to be submitted to the tax office until October 2.
To ensure the accuracy and reliability of your annual financial statements, it makes sense to have them audited by an independent auditor. An auditor will review your accounts, check the accuracy of your figures and give you valuable feedback. An external audit can boost the confidence of investors, lenders and other business partners.
As soon as your annual financial statements have been completed and audited, you should publish them in accordance with legal requirements. This may include filing it with the commercial register or other authorities. You can also use the annual financial statements to analyze the financial situation of your company, set targets for the coming year and give potential investors or business partners an insight into your company's development. Find out whether your company is required to publish according to the law so that you don't risk any penalties!
Preparing the annual financial statements in detail requires care, accuracy and an understanding of the financial processes. By taking a step-by-step approach and following the above points, you can ensure that your annual financial statements are accurate, meaningful and comply with the applicable regulations. The annual financial statements are not only a tool for recording financial performance, but also an important basis for making decisions and planning your next financial year.
Therefore, use fileee from now on, because the DMS offers you useful support in organizing and archiving your documents. This way, you are perfectly prepared to carry out your annual financial statements with ease and clarity. You can also easily connect fileee with other services to make your workflow even more efficient. For example, a link to the accounting software lexoffice or DATEV simplifies your bookkeeping and helps you to always have a good overview of your finances. This means you are optimally prepared when it's time to prepare your annual financial statements.
