Introduction to financial statements

What is meant by financial statements and annual report

When you have a limited liability company, you must submit an annual report to the Swedish Companies Registration Office after each financial year. The annual report summarizes the year’s events and the company’s financial position according to a fixed structure.

In addition to the annual report, you must also prepare and submit an income tax return for the year. This is submitted to the Swedish Tax Agency and is called income declaration 2 (INK2) for limited companies.

The income tax return and the annual report are usually made in conjunction with each other, even if they are different types of reports. Before you can produce these, however, all accounting for the year must be completely clear and reconciled.

Annual reconciliation

Annual reconciliation means completing the accounting of all business events for the year and reconciling these and checking that the accounting is correct.

Financial close

With a financial statement, you take the reconciled year and make the last bookings needed in connection with the closing of the year. Once this has been done, the year is closed and no new bookings can be made in the financial year. Typical bookings made in connection with the financial statements are the year’s profit and tax and handling of any accrual funds.

Annual report

The annual report itself is a document produced together with the financial statements. The annual report must be drawn up based on a set of regulations that determine what must be included. At Voitto, the annual report is submitted digitally to the Swedish Companies Registration Office.