Annual Financial statements is a summarised record of activities related to your business finances and your business status for a financial year. This is a formal record that must be compiled in a structured way and should include the management discussion. The compilation includes various reports of assets, liabilities, profit and loss as well as cash flows of your company. YOU NEED A QUALIFIED ACCOUNTANT TO COMPILE AND SIGN YOUR FINANCIALS.
Why do you need an Annual Financial Statement Compilation?
The statements are to provide an in-depth view of the business performance. As such, the statements must be easy to read and understand. SARS, of course, must be able to see exactly what the entity's expenses and income are and how cash-flow has been managed. DID YOU KNOW that if your company's turnover (total sales for a financial year) is over R 1 mil, SARS will request a copy of your company's financial statements to be submitted with the company's tax return for that year?
The statements are also used by banks, investors, buyers and trading partners to assess the performance and investment potential of the particular business.