Microenterprise annual report in Estonia
A microenterprise is a private limited company with total assets of up to 175 000 euros and annual sales of up to 50 000 euros. A microenterprise has only one shareholder who is also a member of the management board and its obligations may not exceed its equity. If the company does not meet these requirements, a small business annual report must be prepared.
Submitting a microenterprise annual report is easier than submitting a report for a small, medium-sized or large business. For example, in the case of a microenterprise, no activity report is required. The annual report of a microenterprise consists mainly of income statement and balance sheet. The balance sheet is also in a simplified form. As early as 2016, it was mandatory for micro and small businesses to submit a management report, a cash flow statement and a statement of changes in equity.
The annual report can be submitted in the Company Registration Portal of the Commercial Register and can be done by a member of the management board of the company or a person authorized by the member of the management board.
Preparation of annual report
In the Company Registration Portal, select “Annual Reports”> “Add New Report”> “Annual Report”. Make sure the start and end dates of the financial year are correct. If you click on “Next”, you will see a number of different options, from which you only have to fill in the “Report form category” – there you have to specify that you are a microenterprise. If the company has more than one management board member, there is no choice of microenterprise, since a microenterprise is a company with only one management board member.
Next, click on “Add New Report”> “Use Last Year’s Forms” (if you have submitted an annual report before). Then, when you select “Selection of Reporting Forms”, the reports you need to submit will appear. Make sure that the balance sheet and income statement are selected under the “Main Reports” and under “Notes” select accounting policies, labor costs and related parties as these three notes are mandatory.
Fill out the simplified balance sheet and income statement by clicking “Enter”. Fill in the notes as well: under the accounting policy, you only have to choose whether or not the company continues to operate. In labor costs, record all labor costs and the average number of employees per financial year. Related parties should record any transactions that the owner or board member has made with other companies (including other companies he or she owns). In all boxes where there are no costs or no claims and liabilities, enter zero “0”.
SimplBooks accounting software provides you with easy access to balance sheet and income statement data by selecting “Accounting”> “Balance sheet” from the main menu and selecting “previous year”. The dates then automatically change to the correct dates for the previous financial year.
You will find the profit and loss (income) statement in the same way as the balance sheet: by selecting “Accounting”> “Profit and Loss” from the main menu. You must also select “previous year”. Labor cost data can also be found in the Profit and Loss statement.
Completion of annual report
When all previous main reports and notes have been completed and saved, go “Back to the main view of the report” again. You still need to fill in the sales revenue breakdown – in the main view, click “Enter the breakdown of sales revenue “.
You will now be able to move on to the “Further to the report reviewing” section. In the reviewing section, you can update or change the title page and in this section you can create a PDF: “Generate PDF”, but first preview and check the compliance of the data to make sure it is correct. Once the data is verified and the final PDF is generated, you can proceed to sign the report. To sign, you need to choose between signing with a digital signature or signing on paper and scanning and uploading.
Before submitting the report to the Commercial Register, one more step must be taken, which is to fill in the profit distribution/covering of loss proposal and respective resolution forms and to send confirmations of accuracy of existing activity licenses and notices of economic activities. After sending the report to the register, you should receive a confirmation email.
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