The management report is part of a company’s annual financial statements. In France, the establishment of a management report is compulsory for SA, SARL and SNC. Small businesses must also write this document but with reductions (the company’s activities in R&D, mention of branches, etc.). Indeed, the Sapin II law (ordinance of July 12, 2017) indicates that this relief only applies to companies that do not exceed at least two of the following three thresholds:
The content of a management report
Classified in the appendix, it contains in particular the comments and analyzes of management on the financial statements for the past financial year. The management report must contain several mandatory information such as the company’s situation, its foreseeable development, its R&D activities, its supplier payment deadlines and the important events, which marked it during the closed financial year. In addition, since 2011, listed and unlisted companies (subject to conditions) must also include social and environmental information: commitments in terms of sustainable development, social consequences of their activity, etc.
The management report of SA and SCA
Since the start of 2018, SAs and partnerships limited by shares (SCA) have been required to prepare a report on corporate governance, which is in fact attached to the management report. In SAs with a board of directors, it can be directly included in the management report. Reporting accounts launch podcast introduced in 2020. This report includes information relating to the functioning of the administrative or management bodies. Here are the elements:
The list of terms of office of each corporate officer
Agreements concluded between an officer or a shareholder with a fraction of the voting rights greater than 10% and a subsidiary. A table of delegations granted by the general meeting in matters of capital increase. The choice made by the company between one of the two methods of exercising general management (chair of the board of directors or managing director).
The annual report is a document intended for shareholders and which must be made available to them within 4 months of the end of the financial year. In addition, this report must be sent to the shareholders at least 15 days before the general meeting of shareholders.
The activity report and the financial report constitute the annual report.
• An explanation of the accounting practices of the annual report such as, for example, a description of the principles used to determine the accounting elements of the income statement and the balance sheet
Most businesses and self-employed workers are in daily contact with customers to whom they deliver goods or services. Whether it is a delivery, a manual service or a service: such assignments are not always paid for immediately after completion. Rather, it is customary to prepare invoices and then the accounting department is responsible for managing the outstanding turnover. Here, accounts receivable come into play. What exactly is meant by this term and what are the objectives of accounts receivable?
As a rule, there is a separate account of this type for each customer. However, a few companies unite groups of customers under one debit account. The purpose of accounts receivable is to keep these accounts available for maintenance and analysis.
Using its accounts, open items (unpaid invoices) can be easily monitored. Typically, accounting software can use disclaimers to draw attention to overdue or pending receivables. In addition, the accounting system is often directly linked to the company’s bank accounts and allows electronic consultation of bank statements. The software then automatically accounts for incoming payments to the relevant customer accounts and thus offsets the payment requirements where applicable.
Accounts receivable are not only used to record business transactions. This means that you not only document your payment requirements to keep a general overview, but also to see who is still owed to you. Accounts receivable also allow you to keep an eye on cash flow. It also helps you better assess your future business with your customers.
Typically, accounts receivable goals fall into two parts: receivables management and receivables analysis. The two have in common the emphasis on the business relationship with customers. These are private individuals, other companies, or public bodies to which the company delivers goods and/or services. As soon as the services and remuneration are not directly exchanged, the company issues an invoice that will remain open until the customers have settled their debt.
