The small business financial statements. What is important to know in 2021?

The small business financial statements. What is important to know in 2021?

Financial statements provide information about the financial position of an enterprise. It is compiled by an accountant and reflects the cash flow and financial position for a certain period.

The legal aspects of financial reporting are governed by several regulations:

? The Law of Ukraine.

? The Resolution of the Cabinet of Ministers of Ukraine.

? Methodological recommendations based on the order of the Ministry of Finance.

? Other rules.

The main purpose of financial reporting is to assess the cash flow of any company. It is designed to check the financial condition, cash flows and other monetary transactions over a period of time.

The term of the financial statements is equal to one calendar year. For “young” enterprises, the period of the first financial statements is limited to a period of at least 12 months, but it should not exceed 15 months.

Now the country is striving to develop small and medium-sized businesses. The government distributes benefits, improves lending conditions. So, we’ll take a closer look at what you need to know in the small business financial reporting section.

What companies can be considered small businesses?

If the total value of all the company’s assets does not exceed 4 million euros, and the income from the sale of goods or services is less than 8 million euros, and provided the staff is less than 50 workers, such a business can be considered small. If a business exceeds the criteria of another category for two or more years, then it will move to it.

In 2021, the deadline for submitting financial statements was February 28, 2021. This day fell on a Sunday. So the deadline was postponed to March 1, according to the procedure № 419. In addition to the financial statements to the PFS, it is necessary to indicate the income tax.

When you fill out this document, it is important to remember the unit of measurement is one thousand hryvnia with one digit after the decimal point. The financial reporting has two forms. For detailed and correct filling, read the filling algorithm, a sample or consult a specialist.

You can find online filling and online verification of information. If you refer to “robot”, it may indicate simple errors or inaccuracies in the form. The startups can submit financial statements in a simplified format. The report contains two forms, each of approximately 15-20 lines. It does not take much time to fill, but you need to be careful.