Filing the Annual Accounts: This is How You Do It

Certain legal forms require you to file annual accounts with the Chamber of Commerce (Chamber of Commerce) every year. How do you go about this if you are going to submit such a final financial report for the first time?

What are annual accounts?

Before filing annual accounts with the Chamber of Commerce (KvK), you need to know what the preparation of such an official document entails.

You should see annual accounts as a final financial report of your company. In this report you describe what you have done financially in the past financial year. 

Preparing financial statements

Good to know: drawing up annual accounts is not mandatory for every entrepreneur. This can differ per legal form and type of company.

Organizations that must comply with this every year are:

  • Private company
  • Limited company
  • Cooperative
  • A partnership or CV of which all managing partners are foreign capital partners
  • A foundation or association that has converted at least 4.4 million euros per year in two consecutive financial years
  • A foreign legal entity with branches in the Netherlands that must also publish annual accounts in the country of origin
  • A company that a  foreign company is

If you have a sole proprietorship, you do not have to file your annual accounts. This often applies to self-employed persons.

It may be the case that an exception situation applies to your company. For example, a pension or stamrecht bv does not have to file annual accounts if it is regarded as a small company and does not aim for profit.

Which parts are mandatory in the financial statements?

An annual account consists of various parts. In principle, the larger a company is, the more financial information must be disclosed in the annual accounts.

In summary, the following elements should in any case not be missing from the final financial report:

The Balance : This is a snapshot of the company’s financial status.

A profit and loss account : this provides an overview of all income and expenditure of your company.

An explanation of the above elements: how extensive this argumentation should be depends, among other things, on the size of the company.

For a small company it is often sufficient to state the number of people employed within the company and the way in which the balance has been drawn up.

Larger legal entities must, for example, also file an annual report and a statement from the accountant.

Filing the annual accounts: how does that work?

Nowadays, digital filing is the only way you can submit the annual accounts. Until 1 January 2016, this could still be delivered old-fashioned by post or even by fax to the Chamber of Commerce office in your region, but from the 2016 financial year, the filing is required digitally.

There are various ways in which organizations can submit their annual accounts digitally to the Chamber of Commerce. Which system applies to your company depends, among other things, on the company size.

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Tricks to start a new business

When starting a business, adventure doubts arise. Starting a new business is an opportunity that should not be missed. It opens a window of new challenges that can be rewarding in the long term and constitute a new successful company. Also, today’s entrepreneurship is more important to break job saturation and face the global economic recession of recent years. Starting a new business is always a brave decision, and with these tips, we help you start and take the first steps firmly.

Business plan

The first step and which is essential, is to develop a business plan. The business plan allows you to write and clarify point by point and in detail your business project. Presenting the business plan to investors, partners, and other agents are very important. Having it well done is key for your business project to be successful or not. The business plan must include a detailed explanation of your idea, the budget, what monetary value is given to the product or service, the promotion plans, the size of the company, etc.

Determine your idea

The idea that you are going to offer is the most precious thing in your project. Starting a new business requires an idea valuable enough to make a difference, and the shareholders invest in it, and the potential clients pay. That idea may be selling a product or offering a service. But it is crucial to make it tangible, viable, and realistic so that you have a better chance of success. With your idea in mind, you should also consider the market you are targeting, what your competition will be, etc.

Get financing

In this aspect, you have to be tenacious. Any help is welcome. There are several ways to get financing from bank loans, loans, but also help from other entrepreneurs or people who believe in your idea and support it, be it family, friends, other entrepreneurs, or a crowdfunding campaign. It is also important to find out about public aid to entrepreneurs or aid from private organizations such as business associations or chambers of commerce. To finance and start a new business, you need to be patient and not lose heart if you believe in your idea.

Legal procedures

The legal aspect in which we are going to move must always be taken into account. It must be very clear what type of company and legal form our company will be because each one has its characteristics that can benefit you. You can be autonomous, a limited company, among others. In all legal and tax matters, it is better to consult professionals and let you advise.

Embrace technology

Technology can be the greatest ally. You can manage most of your business from your smartphone or computer. You should also take into account creating a website, having active social networks, and other actions to help you promote yourself and make contacts.

Listen to advice

Let professionals and loved ones advise yourself. They can give you the answer to many questions about your product or service idea. Ask for advice from people who have started before you and sign up for online or face-to-face courses to launch.

Be patient and consistent.

To start a new business, you have to be patient and persevere. There may be hard times because perhaps the plans do not go as desired, but with optimism and perseverance, every project ends up being fruitful.

These are our tips when starting a new business and taking the first steps in your business adventure. We know that it is not easy, but with effort, everything can be achieved.

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