How to fill out an annual report

The work of an accountant requires perseverance and care. The year of fruitful and hard work has ended, it would seem, now rest. But no. This is where the most difficult work begins - the preparation of an annual report. This is a kind of exam for an accountant. The report will be correct if certain indicators converge. The annual financial statements include: balance sheet, income statement, statement of changes in equity (form No. 3), cash flow statement (form No. 4) and the annex to the balance sheet (form No. 5). Follow our step-by-step instructions to compare reporting metrics.

Instruction manual

1

Do not forget that when filling out form No. 3, indicators should be entered into it not only for the reporting period, but also for the previous two. If the company has not undergone changes, then the indicators indicated in line 100 will coincide with the figures for the previous year. If there are discrepancies, you need to find out their cause and indicate this in the explanatory note.

2

Pay special attention to the "Report Help" section, which reflects data on the size of the company's net assets. It is important that these indicators are not lower than the indicators of the cost of the authorized capital. If so, then the firm will have to reduce these figures to these net assets.

3

Pay attention to filling out the form number 4. It should indicate the cash balance for the company as a whole, while the movement of money should be indicated for each type of activity.

4

Decipher some balance indicators when filling out form No. 5. The cash amount should be indicated only for the past year. Check if individual balance sheet items coincide with indicators of form No. 1.

5

Explain discrepancies found in the explanatory note. It will be needed during the audit. The note should consist of three mandatory sections:

- the structure of the company, and its main activities, - accounting policies, - factors that influenced the financial and business operations of the company.

note

Now the company can independently indicate the amount of information that should be in the explanatory note. Moreover, such freedom of writing just contributes to the appearance of basic errors. This is because many people relate to the compilation of this document formally. However, this attitude is erroneous, since the explanatory note is an independent part of the financial statements and requires special attention.