For every entrepreneur, preparing a financial statement is an annual recurring task. It is an essential document that provides a clear picture of your company’s financial health. Whether you have a sole proprietorship, partnership, or limited liability company (BV), it is important that your financial statement is prepared accurately and on time. In this blog, we explain exactly what a financial statement is and who can help you prepare it.
What is a financial statement?
A financial statement consists of three main elements:
- Balance Sheet: The balance sheet provides an overview of the company’s assets, i.e., what the company owns and how it is financed. You can prepare the balance sheet at any time of the year, and it will show the company’s assets and liabilities. Items included in the balance sheet are, for example: fixed assets, financial assets, current assets, short- and long-term liabilities, and provisions. Once all of this is included in the balance sheet, you can clearly see what a financial statement is, what your company owns, and which payments are still due.
- Profit and Loss Statement: The profit and loss statement shows the income and expenses during the year and ultimately reflects the company’s profits.
- Notes to the Financial Statement: The notes provide details and additional explanations regarding the figures. For example, you can add a description of how certain items were calculated.
For some companies, such as limited liability companies (BV), preparing a financial statement is mandatory. A financial statement may also be required when applying for a loan or mortgage to demonstrate your financial position. Read more in this article about who is required to prepare a financial statement.
Why hire a specialist?
Preparing a financial statement requires accuracy and knowledge of financial regulations. An accounting expert ensures that your financial statement is prepared correctly and on time, in accordance with legal requirements. This offers several benefits:
- You save time and prevent mistakes.
- The financial statement meets the requirements of banks, investors, and the tax authorities.
- You gain insight into the financial health of your business.
- An accounting expert can also assist with tax filings and forecasts, such as for a mortgage or loan application.
How much does it cost to have a financial statement prepared?
The cost of preparing a financial statement depends on the complexity of your administration and the size of your business. Generally:
- For a sole proprietorship: the costs are often lower because the administration is simpler.
- For a BV or larger business: the costs may be higher because more obligations and details need to be included in the financial statement.
An accounting expert is an affordable and efficient choice. They ensure that your financial statement is prepared quickly and accurately, without any unexpected costs or delays. An accounting expert can take the worries of the financial statement off your hands, so you can focus on the growth of your business.
Preparing a financial statement is essential for a clear overview of your company’s financial situation. The process requires accuracy and knowledge of the applicable regulations. By hiring a specialist, such as an accounting expert, you can ensure that your financial statement is prepared on time and correctly, without having to worry about mistakes or delays.
Curious about how we can assist you in efficiently preparing your financial statement? Get in touch with Brand Boekhouders today for a free consultation and discover the possibilities!
