Make us of our wide ranging know-how. We ensure a tax optimal accounting policy for your company.
Accounting on a cash basis - simplified system for determining profit
Simple accounting is for companies that:
- do not exceed the accounting limits (EUR 700,000 turnover)
- are exempt from bookkeeping obligations
- do not keep books voluntarily
Inflow outflow principle
- Operating revenue minus expenses (cash or non-cash via the bank) results in profit or loss
- Exceptions e.g. investments - depreciation, certain expenses 15 days before and after December 31
The annual financial statement consists of:
- Balance sheet
- Profit and loss account
- Management report
Required to prepare a balance sheet are:
Regardless of turnover: capital companies and partnerships that have no natural person as a partner with unlimited liability (e.g. GmbH & Co KG).
Depending on turnover: sole proprietorships and other partnerships (OG general partnership, KG limited partnership) if:
- The turnover limit of EUR 700,000 is exceeded twice (in succession) or
- The sales limit of EUR 1,000,000 is exceeded once,
- Those who keep books voluntarily (double-entry bookkeeping).
Excluded from the preparation of accounts are:
- Farmers and foresters (special rules apply to them)
- Non-operational area
In contrast to cash basis accounting, the expenses and income are recorded at the time they occur and not at the time of payment. Provisions, accruals and deferrals have to be set up and assets have to be valued (warehouse, etc.). Question: Do you mean warehouse or what is in it, i.e. inventory (Lagerbestand)?
A balance sheet is the comparison of assets (left) and shareholders’ equity and liabilities (right) at a certain point in time.
- Fixed assets
- Current assets
- Prepaid expenses and deferred charges
Shareholders equity and liabilities):
- Borrowed capital (provisions, liabilities)
- Deferred income
Profit and loss account. The profit and loss account contains income and expense accounts and determines the company's success (profit or loss) in a financial year.
Notes to the financial statements
The notes are part of the annual financial statements and include explanations and additions to individual positions on the balance sheet and profit and loss account.
Based on the corporate results, the tax gain / loss is determined using a reconciliation of book and taxable income.
International accounting standards
- IFRS (International Financial Reporting Standards)
- US GAAP (United States Generally Accepted Accounting Principles)
Disclosure in the company register:
- A distinction is made between four size classes.
- Depending on the size class, there are different disclosure requirements, such as the contracted balance sheet to the full annual financial statements (balance sheet, profit and loss account, notes) and management report.
- Larger companies are obliged to prepare a management report.
- Contains the presentation of the course of business and the financial situation of the company.
Special balance sheets for reorganizations, e.g.:
- Merger balance sheet
- Contribution balance sheet
- Conversion balance sheet
- Demerger balance sheet
- Residual assets balance sheet
- Interim balance sheet for the requested target date
- Supplementary balance sheet for partnerships
The amount of profit on the balance sheet has an impact on
- Tax burden
- Potential profit distribution
- Credit rating by credit bureaus, credit insurers, banks, investors, ...
- Terms and conditions of financing
- Anticipation of profits affect future results
Influencing the balance sheet
in the current financial year
- with regard to invoicing or completion of orders
- expenses brought forward or postponed
preparing the balance sheet
- make use of classification options to increase the equity ratio
- Exercise valuation ‘voting rights’ on
Current assets (inventory, semi-finished work, ...)
Allowances, write-ups and depreciations
release of capital reserves
utilisation of tax privileges and options to optimize taxes
The development of key figures over the years provides information on potential for improvement:
- Time-series comparisons show development
- Relationship between balance sheet and profit and loss account positions
- Earnings indicators such as material and personnel intensity
- Industry indicators for orientation
- Analysis of company financing, debt ratio, working capital, liquidity index
- Statement of sources and use of funds (cash flow or cash flow statement of operating activities, from investing activities, from financing activities)
- Key figures according to the Corporate Reorganization Act (equity ratio and debt repayment period)
- Target / actual comparison, comparison of target and actual values
- Advice on introducing consolidated accounting
- Support when creating a group manual
- Preparation of consolidated financial statements according to UGB or IFRS
- Support with HB II - reconciliation of foreign companies to the Austrian accounting regulations
The balance sheet serves as the basis for your tax returns but also as the basis for evaluating your creditworthiness. The success of your company can be determined by means of the balance sheet. The balance sheet provides a guide to the successful management of your company.
We prepare balance sheets • in accordance with Austrian tax laws • in accordance with the Austrian Commercial Code (UGB) • in accordance with IFRS • and consolidate them. It is our task to make the best possible use of the balance sheet options for you.
We ensure a tax-optimized accounting policy for your company. Our bookkeeping and accounting services adhere to the accounting regulations of the UGB and the principles of proper bookkeeping and accounting. However, always paying special attention to your company’s unique situation and the bank relevant key figures.
In addition to the statutory annual financial statements, we provide valuable annual evaluations of cost centres, cost units, short-term income statements, target / actual comparisons, create interim status calculations and determine important information for controlling your company.
We also regard it our responsibility to comply with the legal regulations when preparing the annual financial statements in order to protect you from liabilities, penalties, etc. With AREA Bollenberger, you are on the safe side – also when it comes to drawing up the balance sheet within the due time frames. The banks, the company register, the tax office, the investors, the subsidy agencies, etc. specify deadlines which are important that you meet them.
Many industries benefit from working with AREA Bollenberger – the one-stop shop for all your business matters – because our sound industry knowledge enables tailor-made consulting concepts. The industry key figure analysis is also very popular.
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