Balance sheet / Annual report / Report

The balance sheet is a mandatory document prepared annually by a company. The most important parts of the report are the balance sheet and the profit and loss account. Sometimes the report has to be prepared during the year. Such a case can be, for example, taking out a borrowing.

The balance sheet is one of the most important documents in company accounting. The report includes the profit and loss account and loss statement, the notes to the financial statements, the business report and the balance sheet. 

This document records the assets of a company according to various aspects for a given period. Aspects of groupness can be, for example, appearance, origin.  Assets and liabilities are also included in the in the balance sheet. 

Companies usually prepare their balance sheet at the end of the business year. In this case, it is mandatory to compile it. 

At the end of the business year, the balance sheet shows where the business has reached in the given year. The document therefore contains important information for the owners, because it shows how their company is doing. 

The balance sheet can be prepared at any time during the year. If, for example, a company wants to take out a credit, the bank will ask for the balance sheet. The report is also necessary if the owners want to sell the company. The investor will ask for the report because he can see how the business is doing. A report can also be prepared during upon liquidation, since a balance sheet must also be drawn up when a company upon termination to exist. 

The profit and loss account statement is also part of the annual report. This document records how profitability the business operated in a given period. It is about the company's costs and revenue, as well as the size and sign of the difference. 

The notes to the financial statements is also part of the balance sheet. This provides detailed textual descriptions, explanations to support the processes, and also contains numerical data.

The type of report a business must prepare depends on several factors. Smaller companies with fewer employees usually have simpler reporting. Large companies listed on the unlisted must comply with many complicated regulations. However, the bases of the reports are the same: they all need a balance sheet, for example. It is worth paying attention to such rules, because there can be problems in the event of a delay, so it is advisable to entrust this to an accountant as well.