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Preparation and submission of the Annual Report
The annual report is a document that provides an overview of the company’s performance – its revenues, expenses, and overall financial situation. It is not just a
When is the deadline for submitting the annual report?
The report must be submitted within six months after the end of the financial year. If the company’s financial year coincides with the calendar year, the deadline is
Stages of Annual Report Preparation
- Collection of documents and data
- Purchase and sales invoices, bank statements, copies of expense receipts, other accounting data, and important contracts
- Granting access to the accountant
- Accounting software, Tax and Customs Board, e-Business Register
- Rectification of the previous period
- Performing accounting for the previous period (if necessary), rectification, and accounting audit
- Preparation of the Annual Report
- I submit the report in the rik.ee environment and send it to the management for review (if the report is prepared by an accountant)
- Preparation of the Activity Report (for small enterprises)
- Management approval
- The management must review and sign the report. The company's management is responsible for ensuring that the information presented in the report is accurate.
- Proposal for profit appropriation/loss coverage
- Submission of the report to the e-Business Register
Where must the annual report be submitted?
The report must be submitted electronically in the e-Business Register’s entrepreneur portal. You can log in there using an ID card, Smart-ID, or internet banking. It is very important to select the correct report type at the beginning – for example, a micro or small enterprise report – as it cannot be changed later. In the entrepreneur portal, you can grant the accountant rights to handle data entry and report submission on your behalf.
Annual Report for Small and Micro-Enterprises
Preparing a micro-enterprise report is somewhat simpler and more cost-effective, as a simplified report form is permitted. There is no need to submit an activity report, cash flow statement, or statement of changes in equity. However, it is important to note whether the company meets the conditions for a micro-enterprise.
A micro-enterprise is a private limited company where two of the indicators at the reporting date do not exceed the following: total assets of 450,000 euros, reporting year revenue of 900,000 euros, and an average number of employees during the reporting year of 10 people.
If you are unsure which report form you should choose, then consult with an expert accountant beforehand.
What happens if the annual report is not submitted?
If the annual report is not submitted or is submitted late, it may result in a fine of up to 3,200 euros, removal of the company from the register, or compulsory liquidation. Both the company and individuals associated with it can be held liable. Therefore, it is truly advisable to submit the report on time – then everything will be in order, and there will be no cause for concern.
Why turn to an accountant for your annual report?
Correct Classification of Expenses and Tax Benefits
An accountant helps to correctly classify expenses and advises on which expenses an entrepreneur can legally deduct tax-free. This is especially important for a new entrepreneur who may not be aware of all available options.
Opportunity to Seek Advice and Gain an Overview of the Company's Opportunities
A good accountant does not just do a “one-off job”; they provide recommendations on how to better plan expenses and simplify accounting during the financial year. You receive professional advice and assistance without having to research laws yourself.
Fast and Accurate Execution
Preparing an annual report requires knowledge of accounting, report structure, and legal acts. If you have not studied accounting, it is difficult to stay updated with all the laws and nuances related to the report. If done independently, errors may occur in the report, the subsequent correction of which can be costly.
Knowledge of the Business Register System
The report is submitted via the e-Business Register environment, where the correct form must be selected (micro, small, or medium-sized enterprise). If you make the wrong choice, it cannot be changed later. An accountant knows which form is suitable for you and will complete it correctly right away.
Time Saving
Preparing the report independently can take several evenings or weekends. For an accountant, this is daily work. In summary, an accountant can complete the report faster, and you won’t have to sacrifice your free time alongside family and business activities. Knowing that everything will be done correctly provides confidence and peace of mind!
Testimonials
“When I first contacted Dina, my company’s accounting was in complete chaos. Previous periods were unorganized, and the annual report deadline was fast approaching. Fortunately, this did not deter Dina, and we quickly got the accounting in order. We have now been working together for over 8 months, and I have nothing but praise. I know I can sometimes be hard to reach, and I appreciate that Dina keeps her ‘finger on the pulse’ to ensure I get things done. I always receive quick answers and solutions. I recommend Lorai’s services to others!”
“When I started my business, I knew very little about accounting in general, and my confidence in the subject was quite low. I was anxious even when preparing invoices, let alone other accounting-related tasks. My first experience with an accountant was rather negative: I overpaid, and the work was done incorrectly or vaguely. With Dina, there are no such problems! She is honest, open, willing to explain the same things multiple times, and also charges a reasonable fee! Thanks to her, I have also developed as an entrepreneur and know that I can take responsibility for accounting as well.”
Annual Report Fee
Working with me, you can be sure that the report is correctly prepared and submitted on time. I promise not just to fill in boxes, but to delve into your company’s figures and ensure everything is logical and compliant.
I will explain in simple, understandable terms if any accounting-related nuance remains unclear to you. I will draw attention to unused tax benefits so that your company can gain maximum benefit from the preparation of the annual report. Working with me, you gain the confidence that your report is in good hands!
The price of the report depends on the size of the company and the scope of its activities. Contact Lorai Accounting; the prices for annual report preparation start from 50 euros.
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