ANNUAL FINANCIAL STATEMENTS
Financial statements are records that outline the financial activities of a business, an individual or any other entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. Financial statements for businesses usually include: income statements, balance sheet, statements of retained earnings and cash flow.
There are three reasons your small business needs financial statements:
• Annual Financial Statements are used the business’ performance and communicate the past, present, and future prospects to stakeholders.
• Annual Financial Statements are expected. Due to the role that financial statements play in bridging the information gap, many lenders will not even consider a loan application without up to date financials.
• Depending on the size of your business, Annual Financial Statements are required by SARS in order to submit Tax Returns. The following documentation is required to draft ANNUAL FINANCIAL STATEMENTS;
• Trial Balance.
• Detailed Ledger.
• Customer Ledger.
• Supplier Ledger and statements.
• Fixed Asset Register.
• Lease and loan agreements together with the amortisation schedules if applicable.
• Bank Statements.
• Statutory returns submitted.
• Copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A).