Financial reporting is an important part of operating a business in Australia. Businesses are obligated to make payments and regularly report their taxes to the Australian Taxation Office (ATO) in their Business Activity Statements (BAS). Certain individuals and sole traders may also be required to lodge a BAS.
In addition to reporting to the ATO, if your company operates in Australia you must regularly update your company information to the Australian Securities and Investments Commission (ASIC). Some companies are also required to lodge financial reports; it is best to consult your accountant for clarifications.
Having processes to systematically document and report your business financial activities not only helps with the legal compliance of running a business; it also helps with your general business operations and spotting any unusual activities. The following items are part of an annual financial report (note: specific circumstances will determine the exact items required):
- Statement of financial position
- Statement of profit or loss and other comprehensive income/li>
- Statement of cash flows
- Statement of changes in equity
- Consolidated financial statements
- Notes to financial statements
- Directors’ declaration that the financial statements comply with accounting standards
- Directors’ report
- Auditor’s report
At C Advisory, we educate our clients and prepare high quality financial reports tailored to their businesses. Our integrated approach with business advisory helps our clients stay ahead of their accounting, financial and taxation matters.