Annual accounting tasks
These yearly audits primarily focus on regulatory and compliance concerns and performance reporting to shareholders.
a) Financial statements for the year
It is crucial to evaluate the company’s annual financial performance and its present financial health near the end of the year. Making statements, such as the balance sheet, cash flow statement, and profit and loss statement helps us understand the same.
These statements are made based on the records maintained during the particular financial year, and the accuracy of those accounts determines how successful they are.
For further planning and strategizing, it is imperative to understand your company’s performance and health, hence it is important to ensure that the information provided is accurate.
b) Complete the year-end tax returns and audit
As soon as the financial statements are prepared, the law mandates that they be audited by an independent external auditor to determine their correctness and completeness before producing a report that will be used by financial institutions, shareholders, and public entities.
This must be carried out annually by qualified professionals, and such independent audits benefit your company more than simply meeting legal obligations. Annual audits assist in testing and evaluating various controls, and procedures, and recommend modifications that are required to increase effectiveness or adhere to industry standards.
Your tax liabilities are computed using the audit report. You must file them in March or April of each year, and in addition to the quarterly taxes, you must pay any unpaid bills.