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
- 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.