Annual report
As a self-employed business owner, you are not formally subject to the same accounting and reporting requirements that apply to limited companies. Nevertheless, there are sound reasons not to compromise on quality.
First and foremost, it is essential that the financial statements provide the proprietor with the necessary information regarding the business’s profitability and show where revenue is generated and how funds are expended. As a general rule, this should be presented with 2-4 years of comparative figures, in order to identify trends and developments in the business.
Additionally, the annual report should provide an overview of the business’s financial position through a balance sheet that details assets, liabilities, and equity. Items such as VAT, payroll taxes, accounts receivable, and similar matters should be thoroughly reviewed, even though there is no public requirement for an audit.
The annual report for a sole proprietor is directly linked to the owner’s tax obligations. Consequently, it typically includes a tax statement, profit allocation, and tax optimization. This is usually prepared under the Danish Business Taxation Scheme (virksomhedsordningen), taking into account the spouse’s tax situation, profit sharing between spouses, tax provisions, deductions, home office expenses, travel allowances, and other elements relevant to general tax optimization for sole proprietors.
At PrivatRevision, we excel in preparing annual reports for sole proprietors – reports that not only provide deeper insight into your business but also optimize your tax obligations in a tangible way.
Furthermore, the annual report often serves as a solid basis for decision-making by your financial institution in connection with obtaining or maintaining financing.
We have specialized in consultants, lawyers, doctors and other who sell their knowledge.
We are not the cheapest provider on the market, nor do we aim to be. What we do deliver is quality that compares favorably with any accounting product available to sole proprietors. Moreover, we are often able to identify tax savings, as taxation is our core expertise.
Annual reports can be prepared based on reconciled bookkeeping provided to us, or we can offer to handle the bookkeeping for your business.