How Does the Annual Report Work?
To illustrate this, let’s look at a simplified example covering two financial years.
Financial Year 2024
In 2024, your company generates a turnover of CHF 10,000 and, at the same time, a profit of CHF 10,000.
When you create the final financial statements in Atlanto under Accounting → Financial Statements, the software automatically shows you how these statements are presented in the balance sheet and income statement.
Atlanto automatically completes all necessary closing entries in the background. The annual profit is transferred to the ‘Profit carryforward or loss carryforward’ account.
The annual profit is posted as follows:
- 9200 (annual profit or annual loss) / 2970 (profit carryforward or loss carryforward) with the amount of CHF 10,000
- 3000 (gross revenue from product A) / 9200 (annual profit or annual loss) with the amount of CHF 10,000
Note: The annual profit appears separately in the balance sheet and is not automatically transferred to the ‘profit carryforward or loss carryforward’. If you would like a different presentation, you can find more information in this FAQ.
Financial Year 2025
In the 2025 financial year, turnover – and at the same time profit – amounts to CHF 20,000.
After the final closing, the balance sheet and income statement show the following picture.
As you can see, the profit of CHF 10,000 from the 2024 financial year has been transferred to the ‘Profit carryforward or loss carryforward’ account. The profit from the 2025 financial year appears separately in the presentation and has also already been transferred to account 2970 in the background (as in the previous year).
Note: The previous year’s figures are not displayed automatically. If you want to view them, you must do so manually. In this FAQ, we show you how this works.