Are you wondering how to prepare year-end financial statements? This text contains everything you need to meet your legal obligations.
Preparation for drawing up year-end statements
In order to proceed with the preparation of year-end statements for legal entities, it is necessary to:
- Reconcile receivables and payables between debtors and creditors (IOS confirmations)
- Carry out an inventory of assets and liabilities
- Reconcile business books with the performed inventory
All of this as of 31 December of the business year.
Financial statements as of 31 December
After the reconciliation, the preparation of financial statements follows:
- Statement of financial position (balance sheet)
- Statement of comprehensive income (income statement)
- Cash flow statement
- Statement of changes in equity
- Notes to the financial statements
Additional documentation
In addition to the above statements, you are required to prepare:
- Statistical annex
- OA form
- Corporate income tax return
Relief for micro and small legal entities
Micro and small legal entities are required to submit to the Tax Administration:
- Balance sheet
- Income statement
- Statistical annex
- OA form
- Corporate income tax return
All listed reports are submitted to the Tax Administration by 31 March of the current year for the previous year.
Explanation of the key statements
Balance sheet
A financial statement on the state (assets) of a company on a specific date. It consists of:
- Assets — resources available to the company
- Liabilities and equity — sources or origin of these resources
The value of assets and liabilities must be equal.
Income statement
A financial statement that shows revenues, expenses and the result achieved by the company in a given period. The business result may be:
- Profit
- Loss
Cash flow statement
Provides data on:
- Sources (acquisition) of liquid funds
- Use (outflows) of liquid funds of the company in the reporting period
Statement of changes in equity
Shows changes in equity (changes in net assets) during the reporting period.
Statistical annex
A financial statement containing certain statistical and status data. It serves for reporting on the financial position and results of operations during the business year.
OA form
A form used for the calculation of depreciation for tax purposes.
Corporate income tax return
A tax return in which the tax base is determined — by adjusting the financial result (profit/loss) from the Income Statement with items from the tax return.
Additional obligations after closing the books
In addition to the year-end statements, a legal entity is required to submit:
| Form | Purpose | Deadline |
|---|---|---|
| Real estate tax return | Determining the tax for the current year based on the business books of the previous year | 31 March |
| OPD2 form | Annual report on paid income and paid taxes and contributions | 31 January |
| IOPPO form | Report on calculated and paid withholding tax on income of a non-resident legal entity | 28 February |
| M4/M12 returns | Reporting data for pensionable service, salaries and paid contributions | 30 April |
Finance Plus offers a service of audit of business books from the accounting and tax aspect — as well as preparation of all the listed annual reports. Contact us.
