In order to find out the financial and property status of the enterprise, the legislation has developed special accounting reports that systematize the accumulated data for a certain period of time, and also analyze the result of economic activity. Information data are distributed in the reports in the form of tables.
Who and how should report
Accounting and tax reporting are submitted by all enterprises, regardless of whether business was conducted for the specified period or not. It is very important that the reporting forms are filled out correctly, since inaccurate data can lead to a fine. A professional accountant must deal with the filling of accounting documents, and he is also required to know the tax document flow well.
Varieties of reporting forms
Forms of financial statements can be annual and interim. Currently, such documentation must be submitted once a year. In some cases, companies may require interim reporting, for example, to obtain a loan or attract other investments. Quite often, a quarterly form is also provided for participation in various tenders and competitions. Such documents are filled in exceptional cases.
One of the main types of reporting is the balance sheet. It is a pivot table structured according to the principle of active and passive articles. This form is an information guide reflecting the economic condition of the organization. On it you can get a clear picture of the number of working capital, but you can not analyze the movement of money.
The next equally important registry is the income statement. This form of organization reporting most clearly reflects the financial result, which is calculated on the basis of the analysis of income and expense items. The data talk about the profitability or loss-making of the company.
The third most important is the report on changes in equity. Such a register shall be filled in case of a change in the reserve or authorized capital. Also from the table you can find out about the amount of retained earnings of the organization or uncovered loss.
The cash flow statement will be the last in the group of important financial statements. This register most clearly reflects changes in all cash for a certain period. This form is most often requested by banks when considering a loan application.
All reporting forms reflect information rather conservatively. Confidential information that should not be publicly disclosed remains outside the scope of the document. A summary of the data is the basic principle for filling out such registers.
The degree of demand for reporting documents
Reporting forms, which are provided upon request, have varying degrees of demand. The most rated is the balance sheet. It is provided to regulatory authorities, credit organizations, as well as at the request of counterparties when concluding a contractual relationship.
The second most popular is the report on changes in equity. Such information is most often of interest to financial institutions and potential investors. The remaining financial statements are less in demand and are mainly submitted only to the tax authorities.
What is tax reporting and what is its role
The tax reporting forms are designed to systematize the data of the financial and economic activities of the company. Such documents are filled out in relation to accrued taxes and represent a certain set of tables.
A tax return is a final document that reflects the income and expenses of a taxpayer, as well as the amount of necessary transfers and contributions. Filling out reporting forms depends on the tax system that the organization uses. The maximum amount of documentation is dealt under the general regime. Also, the number of filled out declarations is quite often related to the size of the company, types of activities and the number of employees.
Tax reporting forms are submitted to the territorial regulatory authority at the place of registration of the company. Such documentation may also be quarterly or annual.
The most important declarations
The general taxation system involves the submission of a fairly large number of declarations. In terms of importance, they can be distributed as follows:
- The profit declaration is submitted by the 28th day of the month following the quarter. This document reflects the income and expenses of the company, the amount of accrued profits and interest payments to the budget.
- The value added tax report is submitted by enterprises applying the basic taxation regime. This form is provided within twenty days after the end of the reporting period.
- Subject to payroll for employees, the company is required to fill out a tax on personal income tax. Such a register is leased once a year until the first of April.
- The property tax declaration, as well as the advance payment report, are submitted to the tax authority by firms that have fixed assets on the balance sheet.
- The transport declaration is filled in if the company is the official owner of the car, which is subject to taxation. This form is annual and is valid until February 1.
- A land declaration is provided if the organization has ownership rights or long-term leases for land.
What forms are optional
Some reporting forms are filled out only by those enterprises that are legally recognized as payers of such deductions. It can be taxes on gambling, water, various excise taxes. Firms using a simplified taxation system are much easier to live with, since they do not need to submit most of the declarations. Financial and tax reporting is submitted in a strictly defined period. The tax authorities are very careful to monitor non-compliance with such deadlines and if they are late, they will immediately apply penalties.