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.
What is in a financial statement?
An annual report also contains information about your finances. This part is called the financial statement. A financial statement sums up how your company has fared financially in the past year (financial year). The financial statement 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 statement 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 statement.
Am I required to file the financial statement and annual report?
By law, many organisations and companies are required to file a financial statement 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 statement with KVK.
Financial statement 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 statement for your records. You do not file this with KVK. You use this statement when you file your income tax return. You may also have to show your financial statement when you apply for a business loan or mortgage.