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 used. As a general guideline, this should be presented with 2-4 years of comparative figures to identify trends and developments in the business.
In addition, 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 optimisation. 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 optimisation 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 optimise your tax obligations in a tangible way.
Furthermore, the annual report often serves as a solid basis for your financial institution’s decision-making regarding the obtaining or maintenance of financing.
We have specialised in serving consultants, lawyers, doctors, and other professionals who sell their knowledge and expertise.
We may not be the cheapest provider on the market. However, what we deliver is quality that compares favourably 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.
