- The financial statements are prepared in accordance with Law No. 25/2018 and national accounting standards.
- Micro and small units use simplified formats with fewer entries and notes.
- Reports must be submitted to the QKB by July 31, together with the assembly resolution.
- The annual tax return is filed by March 31, that is, before the financial statements.
- The simplified format does not reduce the responsibility for data accuracy.
The end of the financial year has two deadlines that get mixed up. The annual tax return is filed by March 31. The financial statements and the assembly resolution are filed with the QKB by July 31.
So the statements are not the same as the declaration, and submitting one does not close the other.
Read also: Tax calendar and deadlines
Who uses the simplified format?
Micro and small units, according to the classification of Law No. 25/2018. Their format has fewer line items on the balance sheet and income statement, and shorter explanatory notes.
The categorization depends on total assets, revenue, and the average number of employees. Who is required to maintain accounting and which category they fall into is explained on our page. mandatory accounting.
What does the year-end file contain?
| Document | Content |
|---|---|
| Balance sheet | Assets, liabilities, and equity at the reporting date. |
| Income Statement | Revenues and expenses of the period |
| Explanatory notes | Accounting policies and details the figures don't show on their own. |
| Assembly decision | Approval of the financial statements and the allocation of profit |
The assembly resolution also carries a second obligation. The decision on the allocation of profit must be filed with the tax authorities by July 31, in accordance with Article 56 of Law No. 29/2023.
Errors we see in the closing
- Accounting profit is taken directly as the tax base, without the adjustments required by law.
- Accounting depreciation is not reconciled with tax rates.
- The inventory is not physically counted and remains overstocked with spoiled goods.
- The explanatory notes are copied from last year without being updated.
Frequently asked questions
By when must the financial statements be submitted?
By July 31 at the QKB, together with the assembly's decision.
Is the annual tax declaration sufficient?
No. It is due by March 31 and is a separate requirement from the financial statements.
Who can use the simplified format?
Micro and small units, according to the categorization of Law No. 25/2018.
The simplified format saves time on presentation, not on work. The figures entered there must be just as accurate as in any other format.
Previous text and download format
The start of the new fiscal year is an important moment with many commitments for the finance office staff. It marks the finalization of one fiscal year and the culmination of preparing the financial statements.
Although it is often considered a process carried out only by specialists and statutory auditors, any economist can prepare financial statements. What is required are the fundamentals of financial accounting, knowledge of the accounting framework, and, in some cases—when expertise and valuation are needed—experience in handling such matters.
The financial reporting process should never be viewed as the mechanical completion of financial statement forms and explanatory notes. These statements will be read by external users, so they must be as clear and comprehensible as possible.
To offer you some assistance, by providing an example and ideas for techniques that can help in preparing financial statements, below you will find the simplified format of the financial statements for a fiscal year. They may be of assistance to some practitioners in finance matters—who may not be economists—as well as to colleagues in the finance office and beyond.
The first material is prepared in Excel format, with built-in formulas and formatting for financial statements and explanatory notes. It is the result of our years of experience. The second format is that of complete financial statements, including explanatory notes.
How to use it and where to download it
We hope this material will provide only a preliminary idea of what a simplified set of financial statements might look like and how you can adapt this material to your situation.
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