In this article, we look at when and how accountants report and why meeting deadlines is so important.
Reporting plays a key role in businesses of all sizes, providing financial transparency and enabling informed decision making. For accountants, reporting is an important part of their professional life.
Importance of reporting
Reporting is a systematized data on the financial condition of the organization for a certain period of time. It includes financial statements, tax returns, cash flow statements and other documents. This data is necessary for both internal management of the company and external stakeholders such as investors, creditors, government agencies and auditors.
Peculiarities of reporting
Filing statements is a complex process that requires organization, accuracy and attention to detail. Some key aspects include:
Data Preparation: Accountants must gather and organize a variety of company financial data, including balance sheet, income statement, tax data, and others.
Transparency Policy: Transparency in reporting is a key accounting principle. Underreporting or overreporting can have serious consequences.
Use of Software: Many modern accounting software programs allow automating the reporting process, minimizing errors and simplifying data analysis.
Continuous Knowledge Update: The field of accounting and taxation is constantly changing. Accountants must keep up with changes in legislation and reporting standards.
Reporting is not just a formality, but a key tool for effective management and maintaining a company’s financial stability. Accountants play an invaluable role in this process, ensuring the accuracy, reliability and timeliness of financial information. Compliance with reporting deadlines is not only a legal requirement, but also a strategic necessity for successful business development.
Reporting includes various types of reports that provide a complete picture of a company’s financial activities:
Business Year Report: This report provides a comprehensive overview of the company’s financial performance for a specific period, usually 12 months. In most cases, the business year coincides with the calendar year (January 1 to December 31), however, it may vary according to the company’s articles of association. The report contains detailed data on income, expenses, assets and liabilities of the company. According to the reporting procedure, this report must be submitted within 6 months from the end of the business year. It is submitted to the Commercial Register.
KMD and TSD declarations are an important part of a company’s tax returns. Filing these returns on time avoids penalties and unpleasant consequences. It is submitted to the Tax and Customs Board.
KMD declaration reflects turnover tax and requires accurate calculation of tax liabilities, it is filed once a month, the deadline for filing the declaration and paying the tax is set for the 20th day of the following month.
TSD declaration is related to income and social taxes, mandatory funded pension and unemployment insurance payments, filed once a month, the deadline for filing and payment of taxes is set for the 10th day of the month following the month of payment.
Gambling Tax Declaration: Organizers of gambling games are obliged to submit a gambling tax declaration and pay the relevant tax no later than the 15th day of the calendar month following the taxation period.
