Preparation of an Annual Financial Report(GFO) for a Bulgarian company in 2024

In Bulgaria, the preparation and publication of the Annual Financial Statement (GFO) are mandatory procedures regulated by the Accounting Act. This process is essential not only for the management and strategic planning of any company, but also for ensuring transparency and trust among investors, partners and regulators. In response to these demands, Elan Consultingpresents its integrated online service for “Preparation and publication of the GFO in 2024.”, covering all the key aspects and steps necessary for the effective management of this important administrative process.

According to The Accounting Act, any trader in the sense of Commercial Law (TC)is obliged to prepare GFO for the previous yearto 30 June, in addition, certain enterprises must publish their accounts in Commercial register until 30 September. The inclusion of this information in our service ensures that our customers will comply with the deadlines and procedures set by law.

Our service is specially designed to cover all traders registered under the TZ, including limited liability companies (Ltd., Ltd.), joint-stock companies (JSC), sole proprietors (ET), limited liability companies (KD)and collecting societies (SD), providing detailed guidance and support throughout the process of preparing and publishing the reports.

Also, we emphasize the special relieffor companies that did not carry on business during the reporting year, which are exempt from the obligation to publish their GFOs in The Commercial Register. We emphasize the importance of submitting declaration of lack of activitywithin the established time limit 30 June, thus allowing our clients to benefit from the statutory benefits provided without additional publication fees.

Elan Consultingis committed to providing its clients with not only specialized accounting and tax advice, but also comprehensive support in navigating the complex requirements of legislation. With our online service for preparing and publishing GFOs, we guarantee that your business will meet all regulatory requirements, optimizing processes and ensuring your peace of mind.

What does the service include preparation and submission of GFOoffered by Elan Consulting?

The service of preparation and submission of Annual Financial Statements (AGR) offered by Elan Consulting provides a complete and comprehensive solution that covers all aspects of the process — from the initial preparation to the final submission of documents to the relevant institutions. This service has been specially designed to provide customers with maximum support and peace of mind in fulfilling their legal obligations related to GFO.

• Preparation of a balance sheet: A detailed balance sheet reflecting the assets, liabilities and equity of the entity.
• Statement of income and expenses: Analysis of the financial results of operating activities for the reporting period.
• Statement of equity: Reflects changes in equity during the financial year.
• Cash flow statement: Analyzes cash flows in and out of the entity, dividing them into operational, investment and financial activities.
• Application: Provides additional information and clarifications to the main financial statements, facilitating their understanding.
• Consultancy for micro and small enterprises(accounting of a small company:)Offer advice on the use of benefits when filing abridged versions of the balance sheet and income statement.
• Submission of annual activity report for ET: Preparation and filing of the income and expense report for sole traders with the tax return, including a statement of fees, commissions, loans and interest, taxes, fees, subsidies and investment aids.
• Assistance in filing declarations of lack of activity: Assistance in filing a declaration of lack of activity in the Commercial Register for companies that did not conduct business during the reporting period.
• Preparing for an independent financial audit: For ET with revenues above a certain limit, provide a complete set of documents for audit.
• Publication of GFO: Submission of the complete set of documents in the Commercial Register or in the Register of the ULNC, depending on the type of enterprise.

When is the GFO (Annual Financial Report) published in Bulgaria in 2024?

The importance of timely and correct publication of the Annual Financial Statement (AFO) is a critical element in the management of any enterprise in Bulgaria. The legislation provides for specific deadlines that companies must comply with in order to ensure their legality and avoid possible sanctions. Within the year 2024, these deadlines are as follows:

• Publication of the GFO in the Commercial Register: All companies registered under the Commercial Law are obliged to prepare and publish their GFO for the previous year until September 30, 2024This includes limited liability companies, joint-stock companies, limited partnerships and joint ventures.
• Submission of a declaration of lack of activity: The deadline for publication of a declaration of no activity for 2023 is until June 30, 2024 .
• Submission of GFO to the National Statistical Institute (NSI): In addition to publication in the Commercial Register, companies must have prepared and submitted their GFO to the NSI until June 30, 2024This is an essential step that contributes to the general statistical framework of the state and provides a comprehensive picture of the economic situation.
• Special deadline for sole traders: Sole proprietors have a separate period of validity, and are obliged to publish a report in the National Statistical Institute in the period from 01 January to 01 July 2024.

IMPORTANT! Only sole traders who are subject to a mandatory independent financial audit submit an Annual Financial Report to the Commercial Register!

Understanding and complying with these deadlines is essential for all business entities in Bulgaria to ensure their compliance with national laws and regulations. At Elan Consulting, we provide the comprehensive support and resources necessary to our clients to facilitate this process. With our help, companies can successfully navigate through the requirements for publishing and filing GFOs, ensuring timely and correct fulfillment of their obligations.

What does the annual financial statement/annual activity report include?

The Annual Financial Statement (GFO) is a fundamental document that reflects the financial position of each company for the respective reporting period. It is mandatory for all enterprises registered under the Commercial Law in Bulgaria and is subject to publication in the Commercial Register or in the Register of Non-Profit Legal Entities. The content of the GFO is strictly regulated and includes a set of financial documents that provide comprehensive information about the financial results, assets, liabilities and cash flows of a company.

Main components of GFO:

• Balance sheet: Reflects the assets, liabilities and equity of the entity as of a specific date, thus providing a clear picture of the financial condition of the company.
• Statement of income and expenses: Presents the financial results of the entity's operating activities for the reporting period, including income, expenses and financial result (profit or loss).
• Statement of equity: Shows changes in the company's equity during the reporting period, including dividends paid, share issues, and others.
• Cash flow statement: Analyzes the flows of cash and cash equivalents entering and leaving the entity, distinguishing between operating, investment and financial activities.
• Application: Provides additional information and clarifications to the main financial statements, which contributes to their better understanding.

Special regimes for different categories of enterprises:

• Micro-enterprisesmay publish a condensed balance sheet and an abridged statement of income and expenditure of their choice, which facilitates their administrative burden.
• Small businessesmay also benefit from the right to draw up a condensed balance sheet and an abridged statement of income and expenditure, together with an annex.
• Sole proprietors, whose net sales revenue exceeds BGN 200,000 and which are subject to a mandatory independent financial audit, must draw up and publish a GFO.

Micro and small enterprises, which are not obliged to conduct an independent financial audit, have the option of not preparing an annual activity report, thereby providing further relief in the requirements for them.

Thus, the GFO is an essential reporting and transparency tool that facilitates informed decision-making by management, owners, investors and other stakeholders.

Annual report on the activities of ET

The annual activity report is an important document that must be submitted by sole traders and other individuals carrying on business, along with their annual tax return. It is intended for those who do not make up a balance sheet, including farmers who have chosen to be taxed as sole proprietors, and individuals operating as traders without registration. The annual activity report is required to be submitted if an activity within the meaning of the Accounting Act was carried out during the tax year.

Content of the annual activity report:

• Enterprise reference: Includes general information about the entity and its activities.
• Statement of income and expenses: The main part of the statement that reflects the financial results of economic activity.
• Information on fees and commissions: Includes information on fees and commissions paid.
• Report on loans and accrued interest by institutional sectors and sub-sectors: Provides information about loans and related interest.
• Reference on taxes and fees: Includes information on taxes and fees due and paid.
• Report on subsidies and investment aid received and costs incurred: Reflects the subsidies and aids received by the state and how they were spent.
• Report on the production and sales of industrial products: Provides information about the products produced and sold.

For sole traders or farmers with net sales revenues of less than BGN 200,000 for the reporting period, who are not subject to a mandatory independent financial audit, the annual report may consist only of a statement of income and expenses.

Penalties for non-compliance:

Failure to comply with the obligations to complete and submit the annual activity report within the deadline is sanctioned under the Personal Income Taxes Act (ZDDFL), and a fine or property penalty of BGN 500 may be imposed if the act is not subject to a more severe penalty.

This document is essential for the proper reporting of business activities and for ensuring transparency to tax authorities. It contributes to the accurate and legal reporting of financial results and is the basis for determining tax liabilities.