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Financial statements

When it comes to annual reporting to tax authorities for companies, the profit and loss (P&L) report often takes center stage. However, it's part of a wider array of reports including the balance sheet, cash flow statement, and the statement of changes in equity. Each of these reports plays a vital role in providing a comprehensive picture of the company's financial situation.


The P&L report, crucial for tax reporting, details the company's revenues, expenses, profits, and losses over a specific period. It unfolds like a financial story over time, showcasing the company's operational efficiency and profitability. This report is essential for management and shareholders to evaluate business performance and is submitted to tax authorities to determine the company's tax liability.


However, the P&L report doesn't stand alone. The balance sheet complements it by presenting a snapshot of the company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, offering insights into its financial stability and liquidity. This report is especially useful for tax authorities to understand the company's overall financial resources and obligations.


Then there's the cash flow statement, which tracks the flow of cash in and out of the business. It's a key indicator of the company's ability to generate cash to fund its operations and meet its financial commitments. This report is particularly important for the management as it reflects the company's actual cash position, which can significantly differ from the profits shown in the P&L due to accounting rules.


The report on changes in equity is another critical component. It details the changes in the company's equity during the reporting period, including share capital, dividends, and retained earnings. This report provides a clear view of how the company’s financial policies and decisions impact its overall equity value.


For tax reporting, the tax adjustment report is also pivotal. This document departs from the accounting profit as determined in the P&L report and undergoes adjustments by the accountant to arrive at the taxable income, all in line with the business data, while adhering to tax laws and various criteria.


Our office is proficient in preparing these reports. We conduct thorough audits for various entities, ensuring the correct information is relayed to the tax authorities. We ensure our clients are involved throughout this process, verifying the accuracy of these financial statements before submission.


Additionally, specific forms like 1214 and 6111 are an integral part of the tax reporting process. Form 6111 is for businesses with high turnover, submitted online to the tax authorities, while Form 1214 is the company's annual report to the tax authorities detailing the company's income for the tax year. These forms, along with the comprehensive financial reports, ensure that companies fulfill their tax obligations with complete transparency.

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