What is in an annual report?
In an annual report, you review your company activities of the past year. An annual report shows what you have done and how you are doing financially. You report developments inside your company to others. Others like shareholders, banks, business relations, and staff. You determine what to put in your annual report. It is usual to include a company profile. You outline your mission, vision, marketing strategies, goals, work methods, and successes. An annual report is like a calling card for your company.
The annual report of a small company need only be a few pages long. Larger companies draw up bulkier annual accounts, that contain more information.
What is in a financial account?
An annual report also contains information about your finances. This part is called the financial account. A financial account sums up how your company has fared financially in the past year (financial year). The financial account consists of 3 parts:
- the balance sheet
- the profit and loss account
- the notes
Read more about the balance sheet, the profit and loss account, and the notes on the KVK website.
The bigger your company is, the more financial information you must put in the report. Usually, the accountant or bookkeeper draws up the financial account for you, but you are allowed to do it yourself. If you run a larger company of a certain size, an accountant must approve the financial account.
Am I required to file the financial account and annual report?
By law, many organisations and companies are required to file a financial account and annual report with the Netherlands Chamber of Commerce KVK each year (financial year). For example:
- bvs (private limited companies)
- nvs (public limited companies)
- mutual insurance societies
- verenigingen(associations) and stichtingen (foundations) that run one or more businesses with a minimum of €6 million annual turnover in the last 2 financial years
- cvs and vofs (limited and general partnerships) of which all managing partners are foreign equity partners
Eenmanszaken (sole proprietorships) do not have to file a financial account with KVK.
How to file the financial account
Most companies must file their financial accounts digitally. Some have to send them in by post. Read more about filing your financial account on the KVK website.
Financial account for sole proprietors (zzp’ers)
Do you have an eenmanszaak (sole proprietorship)? Then you do not have to make or file an annual report with KVK. You do need to make a financial account for your records. You do not file this with KVK. You use this account when you file your income tax return. You may also have to show your financial report when you apply for a business loan or mortgage.