Each company should keep a record of its activities. Depending on the size of the company, and therefore the turnover of the chosen form of taxation, the company submits a certain amount of reports to the relevant state authorities. The main task of the chief accountant in this case is to prepare and submit financial reporting forms, which will contain information on the economic condition of the enterprise according to the results of a certain period.
It should be noted that each reporting has a tax return code. It is important that the data presented in the reporting forms correspond directly to the information in the primary documents. Based on this information, the state of the company and its opportunities for further work are determined.
Financial statements: forms
Forms of financial reporting of the enterprise, according to classification code 0710099, include several reports that represent the financial situation of the company in different ways. Thus, the following reports are filled out:
- Balance sheet. This reporting is one of the main for companies. The balance sheet reflects the assets and liabilities of the company that have a cost estimate.
- The financial statement reporting form is filled out on the basis of actual data on the performance of the company. This form includes indicators of revenue, and, accordingly, cost, gross profit, expenses (divided by commercial and administrative), tax liabilities are taken into account, etc. Earlier this reporting form was called “On Profit and Loss”.
- The statement of changes in equity is considered an addition to the balance sheet and provides an explanation of what changes have occurred in the capital structure of the company. This form reflects the dynamics of changes in capital due to securities or revaluation of company property.
- Cash flow statement is a type of reporting that opens information about the organization's cash flow in any currency. Turnovers are shown here for all company accounts, as well as cash.
- The report on the targeted use of funds reflects the cash received and the structure of their spending. That is, on what items of expenditure and what amounts were spent for the specified period.
Ways to Present Financial Statements
The accounting financial statements under consideration (KND form 0710099) are approved by a special order of the Ministry of Finance. She must be surrendered at a certain time to the tax authority.
It should be noted that for the tax authority, these data are submitted once a year based on the results of operations for the previous period. Delivery deadlines are three months after the end of the previous calendar year.
Reporting methods vary. With the development of communication channels of communication, the electronic delivery option is the preferred way. At the same time, other methods are still supported - by sending them by the postal service or directly submitting personal reports with the arrival of the tax authority.
Reporting on financial indicators can be generated during the year. In this case, it is not provided to the tax authority, but is sent to the authorized person who made a request to it. Most often these are the founders or shareholders of the company.
The structure of the provision of information in financial reporting forms
For greater clarity and better perception of information about data for each form of financial statements, tables have been developed.Since most of the companies keep records in specialized programs, these forms are filled in electronically almost automatically. That is, if all the primary data for any direction of the company’s activity is entered into the accounting program, then for the person responsible for the preparation and submission of reports it will be enough only to form the necessary form and verify the correctness of the data.
For those companies that keep records without a program, the tax authorities provide their own specialized program that allows you to enter all the necessary data into it and submit them to the tax.
The task of government bodies in obtaining reporting
The main objective of the enterprise is to provide information on the financial performance of the company in a timely manner, in full and without errors in filling. For the tax authority, these data are needed to determine the operability of the enterprise, including as a taxpayer.
Another government agency to which information is also directed is the statistics agency. In this case, the data obtained form a picture of the economic activity of the enterprise, dynamics and development opportunities. By collecting such information from enterprises in the same industry, you can get an idea of the processes in this field, such as stagnation or growth.
Shareholders as customers of financial statements
These forms of analysis of financial statements are in demand not only by tax authorities. The information provided in these forms will be especially interesting to the shareholders of the company. From each form of financial reporting, you can get data on how the company worked in the previous period, what risks exist in the company's work, what should be changed in certain company processes. For example, a report on the use of funds will show the cost structure. If non-production costs will exceed direct costs of production, then such a distribution of costs will be dangerous for the efficient operation of the company.
Disclosure of information about financial results to banks and creditors
Interested parties in obtaining information from statements, for example, from such a form of financial statements as the balance sheet, will be lenders and banks. Other reports on the financial results of the company are no less interesting for this type of organization.
In the case when a company makes a request for a loan, it must provide information about its performance. And these are not just documents signed by company executives, but financial statements, the form of which is certified by the tax authority. By doing this, creditors and banks insure the transaction, since a document certified by another inspection body should no longer contain incorrect data.
Conclusion
As a result of the implementation of its activities, any company should see its results. In addition, there is a duty of companies to submit information on financial results to the relevant authorities and disclose it to interested parties. For a more structured type of information provision, special forms of financial reporting have been developed through which various blocks of financial indicators can be analyzed.
