The annual financial statement preparation refers to the process in which companies summarize their financial transactions and results at the end of a fiscal year to create an annual financial statement. This financial statement typically consists of a balance sheet, an income statement (profit and loss statement), notes to the financial statements, and other supplementary disclosures and reports. The purpose of annual financial statement preparation is to provide a comprehensive overview of the financial position and operating results of a company during the past fiscal year and to meet legal and tax requirements.
Typical functions of software in the area of annual financial statement preparation include:
Accounting integration: The software seamlessly integrates with the company's accounting systems to import the necessary data for annual financial statement preparation.
Automation of journal entries: It automates the creation of journal entries for closing entries, valuation adjustments, and period-end reconciliations.
Preparation of financial statements: The software supports the preparation of balance sheets, income statements, notes to the financial statements, and other required documents in accordance with legal requirements and standards.
Consolidation of group financial statements: For groups of companies, the software provides functions for consolidating group financial statements to present the financial position of the entire group.
Review and control: It provides tools for reviewing and controlling the prepared financial statements to identify and correct errors and discrepancies.
Compliance and tax reporting: The software supports compliance with legal requirements and tax regulations, as well as the preparation of reports for external stakeholders such as tax authorities and investors.
Analysis and reporting: It enables the analysis of financial ratios and results from the annual financial statements, as well as the creation of reports and presentations for management and other stakeholders.