Accounting Terms and Audit Obligations

Mădălina Constantinescu, Consultant Geseidl

We are entering an important period for all companies that want to close their financial year correctly, efficiently, and in full compliance. Beyond merely ticking off some tax obligations, April and the following months are a good time to take a deep look into the financial health of the company.

What you need to know:

Accounting Deadlines and Audit Obligations – What Every Company Should Know During This Period

Annual Financial Statements – More Than a Form

By May 31, companies must submit the annual balance sheet, accompanied by all mandatory annexes: profit and loss account, explanatory notes, the administrator's report, and the proposal for profit distribution. It is not only a legal obligation but also an opportunity for strategic analysis.

Attention! For NGOs, the deadline for submitting financial statements is April 30.

SAF-T – The New Standard of Fiscal Rigor

The SAF-T file (D406) has become an essential component of the dialogue with ANAF. For large and medium taxpayers, the monthly or quarterly submission of this file is mandatory. It details everything related to transactions, stocks, VAT, and assets, thus accuracy is essential.

Decreasing Indicators – Does It Imply an Audit?

This is a question we receive often: “If I had a decline in activity, do I need to conduct an audit?” The answer is not automatically, but a few clarifications are worth noting.

According to current regulations, statutory audit becomes mandatory if, for two consecutive financial years, a company exceeds at least two of the following thresholds:

·       Net turnover: 32 million lei

·       Total assets: 16 million lei

·       Average number of employees: 50

If the limits of two of the three criteria mentioned are not exceeded in two consecutive financial years, the entity is exempted from conducting the audit, and the audit may become optional.

Our recommendation: Review and analyze monthly key financial indicators (liquidity, profitability, solvency). Constant declines may require additional measures – either in the area of audit or management control.

To support you in managing your accounting obligations correctly, we provide you with a small indicative checklist that summarizes the important deadlines during this period, along with some key points regarding the criteria for conducting a statutory audit.

Useful Checklists: https://drive.google.com/file/d/1zk_x6cYfiZxQdQ2akBrF6JZgReyh-xmb/view?usp=sharing

If you have questions regarding accounting obligations or wish an evaluation of eligibility for audit, our team is here to support you. For personalized support in analyzing indicators, determining the need for an audit, or preparing financial statements, the Geseidl team is at your disposal.

Contact: office@geseidl.ro
Website: www.geseidl.ro