Each company must prepare annual report after the end of each fiscal year, and submit it to the Commercial Register. Annual report must be submitted even if company had no any activity or transactions in the past fiscal year. The report of active company must give a comprehensive overview of the company’s results in the previous financial year. To prepare the report, an annual accounting must be done first.
Term for submission of annual report
The deadline for submitting of yearly report is 6 months from the end of the company fiscal year. for example, if your company fiscal year equals calendar year, then the deadline for submission of annual report is June 30th.
In addition to the above, the company is also required to file other reports and declarations, depending on the form of business, structure and area of activity. Read more here.
An auditor’s report must be appended to the annual report, if company was required to undergo an audit.
An auditor’s report must be appended to the annual report of an organisation subject to accounting requirements who meets at least two of the following three conditions:
- annual net sales of 4 000 000 euros and more;
- balance sheet volume of 2 000 000 euros and more;
- average number of employees is at least 50.
The auditor review is also obligatory for organisations subject to accounting requirements who meet at least one of the following three conditions as of the balance sheet date:
- annual net sales of 12 000 000 euros and more;
- balance sheet volume more than 6 000 000 euros,
- average number of employees is at least 180.
Use Audit Calcluator to find out if your company will be subject to auditing requirement.
Annual vs. monthly accounting
Keeping company accounting on the annual bases only may soung attractive. However, there are many circumstances that may affect your company tax liabilities or other obligations arising from the transactions performed. For example it comes as a suprise for many enterpreneurs, that some of the expenses paid, will be subject to VAT (Value Added Tax) or CIT (Company Income Tax) or Fringe Benefit Tax, which normally are due already next month after the expense is beared.
Finding out about such liability only at the end of the year may result in tax interest arrears and penalties.
Therefore we strongly suggest engageing accounting service on monthly bases, which ensures proper instant support when needed.