Romanian companies of all sizes are required to draw up a monthly balance sheet1.
Objectives of the monthly balance sheet
The purpose of the monthly balance sheet is to enable the amounts contained in the accounts to be verified each month, in order to ensure that all the accounting transactions are correctly and completely recorded.
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Monthly obligation: All companies must draw up this monthly verification report, in order to check the accuracy of accounting records and avoid reporting errors.
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Monthly accounting and impact on the recording process: The aim of the monthly balance sheet is to ensure greater transparency and improve the monitoring of accounting operations throughout the year, avoiding errors that could lead to distortions in the annual financial statements.
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Responsibility: Romanian accounting law imposes responsibility for drawing up and checking the monthly balance sheet, and any failure to fulfil this obligation may result in penalties.
Consequences for companies
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Efficiency of the accounting process: the obligation to draw up this monthly report requires all accounting documents to be recorded without delay.
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Increased transparency: this monthly report then facilitates financial reporting.
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Compliance with international standards: This obligation brings Romania closer to international financial reporting standards, which place the emphasis on continuous reporting and transparency of financial information.
Signature and responsibility
The monthly trial balance is drawn up under the signature of the economic director, the principal accountant or other authorised persons, but without the mandatory signing of the company's legal representative.
On the other hand, annual financial statements must be signed by the company's legal representative2 (manager, director, etc.).
The involvement of the legal representative in signing the financial statements emphasises his responsibility for the veracity and conformity of the financial documents that have been drawn up, since his signature attests to the legality and veracity of the reports. This helps to increase transparency and improve financial governance, by ensuring that senior management is actively involved in the financial reporting process.
1. Article 22 of the Accounting Act
2. Article 28, paragraph (10) of the Accounting Act
