Annual Financial Statements

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Accurate annual financial statements are essential tools for a company to obtain a full picture of its financial situation. They also provide a way of showing your financial performance and status to tax authorities or potential investors.

What is an annual financial statement and why do you need it?

An annual financial statement is a financial report based on a 12-month consecutive period. They are usually done to report on income and expenditure in a calendar year, but could apply to the fiscal year instead. The most common sets of reports issued include a balance sheet, an income statement, statement of retained earnings and statement of cash flows. Your annual financial statement is the best way for anybody (including yourself) to understand how your business is performing financially. Investors and creditors will base their decisions of whether or not to lend you money or invest in your business on your financial statements. A financial statement is also important for tax purposes.

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What is included in financial statements?

Financial statements include the following documents:

  • The balance sheet: A summary of the company’s assets, liabilities and the equity that existed at the end of the year. It provides a snapshot of the company’s financial position in a given year.
  • The income statement reports the company’s flows of income and expenses during the given year. It is generally considered to be a more detailed and reliable picture of a company’s financial position, as opposed to the balance sheet.
  • Statement of stockholder’s equity: This report recaps the transactions that affected the equity accounts during the year, i.e., dividends, owner’s investments and mergers.
  • Cash flows statement: This shows how the company generated and used its cash, dividing the flows up into three main sections: operations, investing and financing.

Annual financial statements in Durban

CBO Accounting and Tax provides all the accounting and financial services required by small and medium enterprises in Durban, including the preparation of annual financial statements.

We can prepare the annual financial statements as required and detailed by the authorities, no matter the type of entity you operate through. We work with all of the following types of organisations:

  • Sole Proprietors
  • Partnerships
  • Joint ventures
  • Body Corporates
  • Trusts
  • Close Corporations
  • (Pty) Ltd

Our financial statements are all prepared using CQS-Caseware and are in compliance with IFRS for SME’s.

Contact CBO Accounting and Tax for annual financial statements and all related accounting services in Durban.

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Get hold of us today, and let us assist you to regain control of your business.