The annual accounts are documents that compile the financial information of the company so that those responsible for it can make appropriate financial decisions and must be submitted to the Commercial Registry on a mandatory basis.
Any company or person who has a relationship with the company and needs to know its financial situation will be interested in knowing the information in the annual accounts, since in these they can check the state in which it is located.
They are prepared every 12 months and must be signed by the administrator as a guarantee of the veracity of the information shown.
What documents make up the annual accounts?
The annual accounts are made up of a series of documents
- Balance sheet: Informs us of the asset, it that belongs to the company, the liability, What are the company's debts and net worth?.
- Profit and loss account: It is positioned in the has to all expenses and in the to have income. The result would be Income – Expenses = Result for the year.
- Statement of changes in assets: It is a financial report that must be presented together with the annual accounts, that is, annually.
- Statement of cash flows: Records all the money that enters and leaves the company.
- The memory: It serves to expand information about the company.
Who is required to present the annual accounts?
All the entities detailed below are required to present annual accounts:
- Anonymous Societies.
- Limited liability companies.
- Foreign companies with a branch in Spain.
- Partnerships limited by shares and mutual guarantee.
- Pension funds.
- Any businessman who is obliged to publish his Annual Accounts.
Thanks to the annual accounts we can understand the reality of the organization:
- Assets available to the company
- Actual financial situation
- Organizational results
Deadlines for submitting the annual accounts of a company
As we have mentioned previously, the annual accounts reflect the information for the company's 12 months of the year, but when must they be presented to the Commercial Registry. Let's see below the most important dates to take into account when preparing and presenting the annual accounts:
- Elaboration of the annual accounts by the administrators: March 31st.
- Legalization of the mandatory accounting books: April 30th.
- Approval of the annual accounts by the General Meeting of the company: June 30th.
- Deposit of the accounts in the Commercial Registry: July 30.
Understanding the annual accounts in addition to other financial indicators is of great importance to know the financial health of the company and make correct decisions for the future.
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