Preparation of and contribution to annual financial statements
The importance of annual financial statements lies in several key aspects:
Transparency and provision of information: Annual financial statements provide a comprehensive and transparent presentation of a company’s financial situation. They ensure that owners, investors, creditors, authorities, and other interest groups have access to relevant financial information about a company.
Assessment of financial health: Annual financial statements make it possible to assess the financial stability of a company. Investors and lenders use these reports to assess the risks and opportunities associated with an investment or a loan. Capital costs can be reduced with an optimized rating.
Decision-making: For management, financial statements are a crucial tool to support decision-making. They provide insights into the company’s financial performance, the profitability of business segments, cost structures, and cash flow
Tax compliance: Annual financial statements are necessary to fulfill a company’s tax obligations. They serve as the basis for calculating taxes and filing tax returns.
Compliance with legal requirements: Depending on their legal form, companies operating in Liechtenstein are obliged to provide information on their financial year and disclose their annual financial statements.
Assessment of profitability: The income statement in the annual financial statements shows whether a company has made a profit or loss in a particular financial year. This is crucial for assessing the profitability and long-term success of the company.
Determining liquidity: The annual financial statements provide information on the company’s cash flow and liquidity position. This is important to ensure that a company is able to meet its ongoing financial obligations.
Comparison and benchmarking: Annual financial statements make it possible to analyze a company’s financial performance over time and compare it with other companies in the same industry or sector. This supports the identification of trends and competitive advantages.
In summary, financial statements are critical for financial transparency, assessing financial health, decision-making, and regulatory compliance in organizations. They serve as an important tool for investors, lenders, management and other stakeholders to make informed financial decisions.
We have the necessary experience and training to support you competently and efficiently in the preparation of your annual financial statements. Our holistic or selective involvement enables you to concentrate on your core competencies.