Annual Accounts & Reports

What are annual accounts?

An annual account is an overview of the financial situation of a company in the past financial year.

There are 2 types of annual accounts, the fiscal annual accounts and the business economic annual accounts.

An annual account consists of a balance sheet, a profit and loss account and an explanation of both.

The tax annual accounts must meet the standards of the tax authorities and are intended to calculate the taxable profit of your company. The taxable profit is used for income or corporate tax levies.

The financial statements provide a detailed picture of a company's situation.

The tax standards are not taken into account, but it does provide a picture of the actual situation.

Who is required to prepare annual accounts?

  1. Private company

  2. Limited company

  3. Foundation

  4. Association

  5. Cooperative / mutual insurance society

When is an auditor's report required?

By law, there are three types of legal entities: small, medium and large.

An audit and statement are mandatory for the last two categories. For small legal entities, therefore, someone other than an accountant can also prepare the annual accounts. The fact is that an accountant has expertise in the field of reporting due to his training and experience.

When am I a medium-sized legal entity?

This is the case if two of the following three criteria are met:

  1. balance sheet total is greater than or equal to EUR 4.4 million;

  2. net turnover is greater than or equal to EUR 8.8 million;

  3. there are 50 employees or more.

If you meet 2 of the above conditions, there is a statutory audit obligation by an accountant.

Most of the legal entities in the Netherlands can be regarded as small legal entities.

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