How do I create an annual financial statement for my small business?
December 22, 2022 | 40,00 EUR | answered by Fanni Ehrig
Dear Sir or Madam,
I am Clara Schneider and I run a small business. In recent years, I have been managing my own accounting independently, but I feel unsure when it comes to the year-end closing. I have already collected all relevant documents such as income statements, bank statements, and receipts, but I do not know how to create a correct year-end closing from them.
My main concern is to get an overview of the financial situation of my company and be able to present it to external partners such as banks or investors. I am worried that I may overlook important tax aspects or make errors in preparing the year-end closing that could lead to legal consequences.
Could you please explain to me what steps I need to take when preparing a year-end closing for my small business? Are there specific forms or software that can help me with this? What deadlines do I need to meet and what legal requirements do I need to consider? I would be very grateful for your support and expertise.
Thank you in advance.
Best regards,
Clara Schneider
Dear Mrs. Schneider,
Thank you for your inquiry regarding the annual financial statements for your small business. It is understandable that you may feel uncertain when it comes to preparing the annual financial statements, as this is a complex process that requires careful planning and expertise. I would like to provide you with some information and tips to help you with the preparation of your annual financial statements.
First and foremost, it is important to be familiar with the various steps involved in creating annual financial statements. The basic steps include preparing the income statement, balance sheet, and notes to the financial statements. The income statement shows the revenues and expenses of your business during a specific period, while the balance sheet represents the financial position of your business as of a particular date. The notes provide additional information and explanations about the numbers in the balance sheet and income statement.
To create an accurate annual financial statement, it is important to carefully review and organize all relevant documents such as the profit and loss statement, bank statements, and receipts. It may also be helpful to use accounting software that can assist you in preparing the various financial reports. There are many different software solutions available on the market specifically designed for small businesses that can help you create your annual financial statements correctly.
In terms of deadlines and legal requirements, it is important to note that small businesses typically have a deadline of 6 months after the end of the fiscal year to prepare and submit their annual financial statements to the tax authorities. There are also certain legal requirements that must be complied with, such as the obligation to retain documents for a specific period of time.
It is advisable to seek assistance from a tax advisor or a specialist when preparing your annual financial statements to ensure that all tax aspects are taken into account and potential errors are avoided. A tax advisor can also help you present your annual financial statements to external parties such as banks or investors and assist you with any legal questions that may arise.
I hope that this information is helpful to you and assists you in preparing your annual financial statements. Please do not hesitate to contact me if you have any further questions or need additional assistance.
Best regards,
Fanni Ehrig
