Schedule of Works on the Financial Statement: The Key to Effective Reporting
Preparation of the financial statement is a complex and precisely planned process which requires following the set deadlines and stages of work. Each stage, starting from the preparation of data, preliminary assessment and final audit, to approval and publication of the statement, must be planned and carried out with particular care. Below, we present a detailed description of the steps necessary for the proper execution of the process.
Stage 1: signing the agreement for the audit of the financial statement
The whole process starts about 4 months before the end of the financial year. An agreement is concluded for the audit of the financial statement and the entity contacts the selected auditing company. At this step, it is necessary to decide on the deadlines of the preliminary assessment, final audit and the planned inventories.
Stage 2: preparing for the preliminary assessment
About two weeks before the preliminary assessment, the entity should:
- prepare the plan for the audit and arrange the details with the auditing company,
- choose the project team responsible for preparation of the documents and closing of the financial year,
- analyze the regulations and prepare a work schedule,
- prepare the documents required by the auditor and handle the risk assessment.
Stage 3: preliminary assessment
The assessment should be carried out before the end of the financial year. Among others, it involves addressing the auditor’s questions, analyzing the comments and preparing to close the year. The preliminary assessment is often followed by external confirmation procedures.
Stage 4: physical inventory
Up to 15 days from the end of the financial year, it is necessary to prepare the physical inventory in order to document the balance of assets and recognize the results of the inventory in the accounting books.
Stage 5: end of the financial year
Once the year ends, it is necessary to collect the source documentation and verify the accounting data. At this stage, the key element is to prepare the estimates and the documentation – including financial statement – required for the final assessment.
Stage 6: preparation of the initial version of the financial statement
Up to three months after the end of the financial year, it is necessary to prepare a preliminary version of the financial statement which then will be inspected and verified by the project team. The said version must be signed by all members of the management board and the person in charge of the accounting books.
Stage 7: final audit
The final audit lasts from three to six months after the end of the year. It involves a detailed verification of the documentation, making eventual corrections and preparation of the final version of the financial statement that must satisfy all the requirements of the auditor.
Stage 8: approval and publication of the financial statement
The report (financial statement) must be approved by the approving body within six months from the end of the year. Then, within 15 days from the approval, the documents are filed to the Polish National Court Register.
Understanding and following the work schedule for the financial statement is crucial for every entity. It allows avoiding errors and ensuring that the financial statement complies with legal regulations and accounting standards.
author: Piotr Czarnecki, Junior Reporting Specialist, MDDP Outsourcing Warsaw
We invite you to read the remaining articles in the ‘Financial Report 2025’ series:
- Schedule of Works on the Financial Statement: The Key to Effective Reporting
- Determining the Form of Financial Reporting: Key Aspects
- Audit Obligation and Selecting the Auditing Company: Key Aspects
- Inventory of Assets and Liabilities and Their Valuation
- Valuation of Assets and Liabilities on the Balance Sheet Date
- Preparation and Signing of the Annual Financial Statement: A Step-by-Step Guide
- Consolidation of Financial Statements: Key Rules and Requirements
- E-Statements: A Guide to Electronic Reporting of Financial Statements
- Sending a Financial Statement After the Deadline: Consequences and Procedures
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