Annual accounts are part of the company's commercial accounting and are mandatory for every entrepreneur. The term "accounting" refers to the documentation of economic transactions - in a sense, it is a general term for all balance sheets. The annual financial statements combine the accounting and inventory and show what profit and loss the company has incurred during the year.
Accounting in Spain is based on the General Accounting Plan (in full compliance with IFRS) and financial statements must be prepared in accordance with IFRS standards.
What include annual accounts
The annual accounts include the balance sheet, income statement (cuenta de perdidas y ganancias), statement of changes in net assets, cash flow statement and statement of financial position (memoria). The consolidated financial statements may be used for small and medium-sized enterprises and microenterprises, provided certain conditions relating to amount and staffing are met.
According to Spanish law, a company can avoid auditing its annual accounts if two of the following conditions are met for two consecutive years: the total balance sheet is less than 2.85 million euros; the annual turnover is less than 5.7 million euros and the number of employees is less than 50.
The publication of reports in regulatory bodies is annual and mandatory. The company's directors have three months after the end of the financial year to prepare annual reports.
Your company is quite busy managing its daily activities, producing products or providing services and doing what it can do best. Let GM Tax Consultancy process your annual reports throughout the year to ensure compliance with company policy, while you focus on what matters most: your business.
We can prepare and submit your company's annual reports. Using GM Tax Consultancy will save you time and remove uncertainty about the details, timing, and payment needed to protect your company's reputation.
Your compliance package for your company's annual report includes the following:
- Confirming your company's good standing;
- Monitoring your deadlines;
- Searching to confirm what to file and when.
- Filling in all forms on your behalf.
- Submitting and filing on time where you need to.
- Confirming acceptance of your company's annual report submission.
- Storage of your information and updates in our system.
GM Tax Consultancy advice includes verification of compliance status, preparation of forms, customer approval (if required), submission of government applications, support for the payment of government fees, confirmation reports, and online monitoring.
Status check - Before submitting an annual report, it is important to determine if the company is in good condition. We will contact each state for which you have requested this service to determine your company's current status and inform you of any compliance issues.
Preparation of the forms - Our staff has a good understanding of the forms and filing methods required in each jurisdiction to process your annual reports in the most efficient and cost-effective manner. We obtain the most current forms and prepare them on your behalf.
Customer approval - In some jurisdictions, it may be necessary to obtain the original signature of an officer or director of the company. In this case, we will send you the prepared form(s) for your signature and approval. We will also provide you with a statement of estimated government and service costs for your approval.
Government fillings and fees - Once the forms have been prepared and the necessary signatures and approvals have been obtained from clients, we will file annual reports with the relevant jurisdictions and advance any government fees that may be paid at the time of filing the annual report. There should be no problem with submitting annual reports with a previously completed status check, but any problems with the submission will be immediately communicated to the client.
Online confirmation and monitoring reports - After completing the above tasks, GM Tax Consultancy will provide your company with a report confirming the status of submission of each annual report.