How to Prepare Annual Financial Statements for a US Business

shuklarani41423

Filing tax and financial reports in the US is strictly regulated by law. Failure to comply with the established deadlines can result in a “hefty” fine for the company owner. And sometimes even criminal liability if the regulatory authorities consider this an attempt to evade taxes. In the US, this is considered a serious crime and has extremely serious consequences.

Often, American companies submit their reports through the official website of the Internal Revenue Service (IRS) — the internal tax service of the United States. It has a fairly clear interface, which is translated into 20 different languages. There you will find all the necessary forms and instructions, explanations and comments to them. However, despite the apparent simplicity, it is still better to entrust your company's reporting system to specialists. Below we will tell you why.

Financial Statement Forms for US Companies
The primary tax return for individual taxpayers is Form 1040. It is used to report income and taxes for the calendar year. Here are the main points associated with it:

There are several variations of Form 1040: 1040-ES, 1040-SR, which offer different levels of detail and complexity. The taxpayer chooses the appropriate option depending on their situation.
There are various schedules that may be attached to Form 1040. For example, Schedule A is used to itemize deductions and discounts, and Schedule B is used to report additional income.
The 1040 tax return is usually due on April 15 of the year following the current year. However, a taxpayer may request an extension if necessary.
Important: If you are not a resident of the country for tax purposes, but receive income from sources in the United States or have income that is somehow connected with the United States, then you must provide Form 1040-NR.


And here it is – the first of many reasons why preparing and on page seo service submitting financial statements in the United States is such a complex and time-consuming process. It is important not only to follow generally accepted accounting principles (GAAP), but also to take into account the smallest details.



Depending on your specific situation and type of income, you may need different forms and attachments to account for your income and tax obligations.

For example, Form 1099-INT is used to report interest income, Form 1099-DIV is used to report dividends, and Form 1099-MISC is used to report miscellaneous income.

Form W-8BEN is used to certify that a person who is not a U.S. citizen or resident is not liable to pay taxes on income from U.S. sources.

Form 1042-S is used to record income subject to withholding tax at source: interest from investments, dividends, rental payments, etc.

In general, documentation requirements depend on the legal form of the company, the specifics of the activity, the state of registration, and other factors.

Reporting requirements

They may vary depending on the type of business, its size, legal form, industry, etc. Let's describe the important aspects in general terms:

Financial. Most companies are required to submit financial statements, including: balance sheet, profit and loss statement, cash flow statement. Documents must be prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Tax. Businesses are required to file tax returns at both the federal level and in accordance with the laws of the state they choose. This includes: income tax returns (for corporations), personal income tax returns (for sole proprietors and partnerships), and other forms of tax reporting.

To Regulatory Authorities. Some companies, especially those that are publicly traded or operate in certain industries, are required to report to regulatory agencies such as the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and others.

On labor and health standards . Companies may also be required to report on their performance on labor standards, health and safety, and other aspects related to workers' rights.

Additional documentation requirements may include disclosure of corporate governance, financial audit and other aspects, depending on the specific situation and regulation.

US Tax Filing Services
You have probably already come to the conclusion that it is much more practical to outsource the preparation of financial and tax reporting. This will allow you to concentrate on the core business of the company, avoid the risk of penalties and legal problems.

In addition, specialists with sufficient experience in this area will help you identify potential financial risks and obtain other valuable information (for example, about tax refunds and reducing current liabilities).

We have been registering and servicing companies in the USA for over 30 years. Among other competencies, we also offer preparation and submission of financial statements.

Not only will we take the question of when to file reports in America off your shoulders, but we will also be useful in many other aspects:

adapt to changes in your business needs or changes in legislation;
improve transparency and accuracy, which in turn helps increase trust among investors, customers and other stakeholders;
gain confidence that all documentation is completed correctly and in accordance with applicable standards;
strategically reduce tax liabilities.
If you would like to use our services, please fill out the form below or contact us in any other convenient way.