How can I best present my liquid assets in the annual financial statement?
July 19, 2024 | 40,00 EUR | answered by Fanni Ehrig
Dear tax consultant,
My name is Nina Czakaj and I run a small business in the field of event planning. I am in the process of preparing my annual financial statements and have a question regarding the presentation of my liquid assets.
Currently, I have an overview of my current liquid assets, but I am unsure of the best way to present them in the annual financial statements. I want to ensure that my financial position is transparent and understandable to potential investors or banks.
My liquid assets consist of my business account, savings accounts, and possibly short-term investments. I would like to know what options there are to best present these different positions in the annual financial statements in order to leave a positive impression.
Furthermore, I am thinking about how I can effectively utilize my liquid assets to further develop my business. Are there any specific strategies or tips you can provide me with regarding the use of my liquid assets?
Thank you in advance for your support and I look forward to your professional advice on this matter.
Best regards,
Nina Czakaj
Dear Mrs. Czakaj,
Thank you for your inquiry regarding the presentation of your liquidity in the financial statements and the effective use of these funds for the further development of your company. I am happy to assist you with this.
It is important that the presentation of liquidity in the financial statements is transparent and understandable in order to convince potential investors or banks of your financial situation. In your case, where liquidity consists of various items such as business accounts, savings accounts, and short-term investments, I recommend the following approach:
1. Breakdown of liquidity: You can list the different items separately in the notes to the financial statements. Be sure to clearly name the individual amounts and, if necessary, provide a brief explanation to ensure better understanding.
2. Liquidity management: It is important that you effectively manage your liquidity to further develop your company. Here are some strategies and tips you can consider:
- Creation of a liquidity plan: By regularly planning your liquidity, you can keep track of your ability to make payments and identify bottlenecks early on.
- Investment in the company: Consider how you can wisely invest your liquidity in your company, for example, to expand into new business areas or invest in the further education of your employees.
- Building reserves: It is advisable to keep a portion of your liquidity as reserves to cover unforeseen expenses or to remain operational in economically challenging times.
In conclusion, I would like to emphasize that it is important to seek advice from a professional tax advisor or financial expert to receive recommendations tailored to your individual situation. If you have any further questions, please do not hesitate to contact me.
Best regards,
Fanni Ehrig
