Any individual entrepreneur, any organization, whether it is an LLC, a public company or a closed joint-stock company, will certainly encounter such a concept as “financial statements”. Moreover, its provision is necessary for any tax system and regardless of whether there is a profit or not.
What does accounting reporting include and why is it needed? Such words inspire fear in an inexperienced person. But in fact, this is structured information about the financial position of the company. It includes information on the movement of assets, profits, losses of the enterprise, the presence of liabilities. Documents are drawn up for a specific
reporting period (month, quarter, half year, year). Accounting statements are mandatory provided to state bodies (tax inspectorate, Social Insurance Fund, Pension Fund), some employees, investors, and contractors. It is necessary for informed economic decision-making, determining the direction of the company’s development, and analyzing the effectiveness of its activities.
In many ways, specific types of reporting depend on the form of activity of the enterprise, on the tax system. So, the main unified forms are the following: “Balance sheet” and its annex, “Statement of cash flows”, “Statement of changes in equity” and “Statement of profit and loss”.
In addition to these documents, there are a number of others, no less laborious and voluminous. However, it is worth noting that such forms are mandatory for those individual entrepreneurs and organizations that work according to the
general taxation system (OSNO). There are also a number of preferential systems, such as the
simplified tax system (USN), the unified agricultural tax (Unified agricultural
tax), or the single
imputed income tax (UTII). For enterprises enjoying such benefits, the financial statements required to be provided by state bodies are significantly reduced, it is limited to only 2-3 documents for the reporting period. This applies to forms established by the state. But the management of a particular company may require accounting to prepare additional reports for more efficient management of the enterprise.
The opinion of many start-up entrepreneurs is erroneous that if the activities of their company are not carried out, then they are spared the execution and submission of reports. This is far from the case. In such cases, enterprises provide zero financial statements.
The irritation of the directors and accountants of the companies over the huge queues at the tax office or, for example, at the Pension Fund, seems quite natural. You have to lose a lot of time, strength and nerves before you get an appointment with the inspector. Significantly simplifies life electronic financial statements. Almost all forms in all government agencies can be submitted via the Internet. To do this, you need to purchase specialized software or contact the services of an intermediary company. It is worth noting that when sending documents, an electronic digital signature is required, and the data transfer itself is carried out through secure communication channels. This means that all information is under reliable protection.