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We help you keep the accounting, prepare the annual close and correctly comply with your company's commercial and tax obligations.
What are annual accounts
The annual accounts are an essential commercial obligation for companies. It is not just about submitting some documents to the Commercial Registry: the accounts must correctly reflect the company’s economic, accounting and financial position.
The annual accounts are the accounting documents that show the economic and financial position of a company at the close of the financial year.
They normally include, depending on the type of company and the applicable model:
- Balance
- Cuenta de pérdidas y ganacias
- Memoria
- Statement of changes in equity (where applicable)
- Cash flow statement (where applicable)
- Certification of approval of accounts
- Allocation of the result
- Additional information required by the current models
Their aim is to reflect the true and fair view of the company and to allow third parties to consult basic economic information about the company in the Commercial Registry.
That is why, before filing the accounts, it is essential that the accounting be correctly reviewed.
Who has to file annual accounts
As a general rule, commercial companies must file annual accounts, especially:
- Limited liability companies
- Public limited companies
- Employee-owned companies
- Partnerships limited by shares
- Other entities required to file their accounts under commercial regulations
A company may have little activity, have invoiced little or even be inactive, but that does not necessarily mean that its commercial obligations disappear.
On many occasions, a company without activity still has to comply with obligations such as accounting, Corporate Income Tax and the filing of annual accounts.
What we review before preparing the annual accounts
Before preparing and filing the annual accounts, we check that the company’s accounting is consistent and correctly closed.
Accounting close of the financial year
We check that income, expenses, banks, customers, suppliers, loans, depreciation and accounting balances are correctly recorded. A correct filing of accounts starts with accounting that is well kept throughout the year.
Balance and cuenta de pérdidas y ganancias
We check that the balance and the income statement adequately reflect the company's situation. This point is key because the annual accounts are public and can be consulted by banks, suppliers, partners, buyers, public authorities and interested third parties.
Allocation of the result
We analyse whether the result for the year is allocated to reserves, offsetting of losses, dividends or another possible allocation. The allocation of the result must be consistent with the company's financial position and with the applicable legal limitations.
Memoria and official models
We prepare the memoria and the necessary documents according to the applicable model: normal, abbreviated or SME , depending on the company's characteristics. We also review the additional information that the current model may require in each financial year.
Coordination with Corporate Income Tax
The annual accounts and Corporate Income Tax must be coordinated. It makes no sense to file accounts with accounting information and a Modelo 200 that is not consistent with the close. That is why, at Asesoría Orihuela Costa, we work on the annual accounts together with the company's taxation.
Why it is not advisable to prepare the annual accounts as an isolated procedure
The problem is that the annual accounts depend on everything that has happened during the financial year:
- recorded invoices,
- taxes filed
- depreciation,
- loans,
- bank balances,
- debts with partners or directors,
- payroll,
- related-party transactions,
- withholdings,
- VAT,
- and tax close.
If the accounting has not been kept correctly during the year, the annual accounts may reflect errors, inconsistencies or data that later cause tax, commercial or banking problems.
That is why our service is designed for companies that need ongoing accounting advice, not a one-off management of annual accounts for accounting that we have neither kept nor reviewed.
Deadlines for the annual accounts
For companies whose financial year coincides with the calendar year, the usual timetable is as follows:
Until March 31: preparation of the annual accounts by the directors.
Until June 30: approval of the accounts by the general meeting.
Within the month following approval: filing of the accounts with the Commercial Registry.
If the general meeting approves the accounts on June 30, the usual filing deadline ends on July 30.
This timetable is very important because the annual accounts should not be prepared in isolation in July. The correct approach is to work beforehand on the accounting close, review balances, check taxes, analyse the allocation of the result and coordinate it with Corporate Income Tax.
What can happen if the annual accounts are not filed
Not filing the annual accounts can have significant consequences for the company.
The most common consequence is the closure of the registry page, which prevents the registration of many acts in the Commercial Registry while the non-compliance persists. This can affect changes of director, capital increases, amendments to the articles of association or other corporate operations.
In addition, the lack of filing may give rise to financial penalties. The Capital Companies Act provides for fines of 1.200 to 60.000 euros, and in companies with annual turnover exceeding 6.000.000 euros the limit may rise to 300.000 euros for each year of delay.
That is why the filing of accounts should not be left to the last minute or treated as a secondary obligation.
Annual accounts, accounting and Corporate Income Tax
The annual accounts are directly connected to three key areas of the company:
accounting, because they reflect the economic and financial position;
Corporate Income Tax, because the accounting close serves as the basis for calculating the fiscal result;
commercial obligations, because filing with the Commercial Registry gives formal publicity to the company’s accounts.
A good advisory firm must review the whole set, not prepare each obligation separately.
At Asesoría Orihuela Costa we coordinate accounting, the tax close, Corporate Income Tax and the filing of annual accounts so that the company complies correctly and with a global vision.
Advisory for annual accounts in Orihuela Costa
At Asesoría Orihuela Costa we work with limited liability companies, SMEs and businesses in Orihuela Costa, Torrevieja, Pilar de la Horadada, San Miguel de Salinas, Alicante and Murcia.
Our approach is practical:
We also help foreign entrepreneurs with companies in Spain who need to understand their accounting, tax and commercial obligations clearly.
We help you with the accounting and annual accounts of your company
If your company needs an advisory firm to keep the accounting, prepare the annual close and correctly manage the annual accounts, we can help you. Our service may include:
- Company accounting
- Review of the accounting close
- Preparation of annual accounts
- Filing with the Commercial Registry
- Coordination with Corporate Income Tax
- Review of accounting balances
- Control of commercial obligations
- Accounting and tax advice throughout the year
Frequently asked questions
Do all companies have to file annual accounts?
As a general rule, commercial companies must prepare, approve and file their annual accounts with the Commercial Registry, even if they have little activity or have not made a profit.
When are annual accounts filed?
Normally, if the financial year coincides with the calendar year, the accounts are prepared by March 31, approved by June 30 and filed within the month following their approval.
Does a company without activity have to file annual accounts?
In many cases, yes. The fact that a company is inactive does not automatically mean that its commercial, tax and accounting obligations disappear.
What happens if the annual accounts are not filed?
The company may suffer the closure of the registry page and have problems registering corporate acts. In addition, financial penalties may be imposed for failure to file.
Do the annual accounts have to match Corporate Income Tax?
They must be consistent. The annual accounts are based on the accounting and Corporate Income Tax is also calculated from the accounting result with the corresponding fiscal adjustments.
Can I hire only the filing of annual accounts?
Our approach is not to carry out isolated one-off tasks. We work with companies that need ongoing accounting and tax advice, because the annual accounts depend on the accounting and the close carried out throughout the financial year.
Do you want us to keep the accounting and annual accounts of your company?
Contact Asesoría Orihuela Costa and we will help you manage your company's accounting, tax and commercial obligations with confidence.