prepare annual financial statements The preparation of financial statements can be both a simple and a complicated task. It all depends on the size of your business and the number of monthly transactions. There are degrees that require footnote information. On the other hand, there are financial statements that are presented without footnotes.
The explanations can have different purposes. For example, your bank will usually be content to see some basic financial numbers to ensure your business is in a position to pay off debt. The financial statements or report are typically prepared by translating account audit balances into a set of templates appropriate to a particular country's accounting laws.
Specific requirements for financial statements in different jurisdictions Today, most financial statements are prepared in full accordance with generally accepted accounting principles (GAAP). However, you should always consider the specific requirements for the chosen jurisdiction. For example:
The fiscal year. In the vast majority of countries (particularly EU member states) the financial year ends on December 31st. Other jurisdictions may have different approaches as the financial year may end in different periods depending on the company's registration date, e.g. B. (in Singapore, UK, Hong Kong and others); Deadlines for submitting annual reports. Depending on the jurisdiction, the timeframe for filing the annual report can vary from a few months to a year: 3 months in Bulgaria and Singapore; 4 months in Latvia, up to 12 months in Cyprus or up to 8 months in the UK; requirements for the exam. Note that some countries require each company to submit an audited report (Cyprus, Singapore, Hong Kong, Ireland). In other countries, companies can produce an audited report voluntarily or if they meet certain criteria (read more about audit).