While most SME’s (Small to Medium Enterprises) will produce a simple profit and loss and balance sheet, there are specific guidelines to follow in preparing financial reports, whether they are needed for banks, tax or other purposes.
Businesses / Companies have various reporting requirements to meet subject to a range of regulations and necessities. How a set of financial accounts/reports are presented and prepared is usually determined by applying the Australian Accounting Standards, as produced by the Australian Accounting Standards Board (“AASB”). These standards are now amended to accommodate the necessity to be able to produce accounts by applying common standards from around the world and the current AASB’s have an equivalent International Financial Reporting Standard (“IFRS”). Generally there are two type of financial reports that can be produced by a business. These being:
Special Purpose Financial Reports
These reports can be prepare in virtually any format that the business requires or desires them to be in. Generally as a minimum they will be made up of a Profit and Loss Account and a Balance Sheet, however they may contain varying degrees of other reporting requirements as established by the directors/owners/members. These are the type of reports that are prepared by most SME’s.
General Purpose Financial Reports
These reports are prepared by applying the AASB’s and will generally follow a specified format although there still remains some ability to vary this. These reports are prepared by entities as determined under the Corporations Act and the application of the Statement of Accounting Concepts (SAC) 1 and 2. As a general guide any company that has a large number of employees, foreign ownership or a perceived high number of end users that are reliant on the financial accounts to make decisions regarding the application of their resources, then general purpose accounts may need to be prepared – however application and interpretation of these rules can vary.
We can help…
If you need reports prepared, we have a team of experts with a wide range of skills that can assist your business to produce the accounts while meeting your requirements on a timely and cost effective basis. These can range from IFRS level to Special Purpose bank financials. We may be based in Queensland but we can prepare reports for anyone in Australia. Let’s start the conversation by calling 1800773643, chatting to us on our website or via our free app, reaching out via social media or visiting our CONTACT US page for more options to connect, including text messaging.