Annual Accounts: practical guides and steps

Annual accounts sum up the financial position of a business each year. For most Belgian companies, filing them remains a legal obligation. This page helps managers, self-employed people and non-profit leaders know what to produce, and when.

What do annual accounts contain?

Three documents form the core. Each one sheds light on a different aspect of the business.

• The balance sheet captures assets and liabilities at the closing date.
• The income statement measures performance over the financial year.
• The notes explain valuation rules and certain commitments.

The content then depends on the applicable format. The full format covers large companies and also includes a management report. Small companies use the abridged format. Finally, micro companies benefit from the micro format, which stays even lighter. Classification rests on three criteria: headcount, turnover and balance sheet total.

Who must file annual accounts?

The rule mainly targets limited liability companies. Here are the main structures concerned.

• The SRL, the SA and the cooperative company.
• Non-profit associations and foundations, depending on their size.
• Economic interest groupings.

By contrast, a self-employed individual files nothing with the NBB. They still keep books suited to their activity. Likewise, an SNC or SComm escapes filing when only individuals carry unlimited liability. To place your own duties, read our article on the accounting obligations of Belgian businesses.

The calendar and filing with the NBB

The calendar follows two successive stages. First, the general meeting approves the annual accounts within six months of year end. Then the company files them within the following thirty days. For a financial year ending on 31 December, filing therefore happens by the end of July at the latest.

Filing takes place online, in XBRL format. It goes through the Central Balance Sheet Office of the National Bank of Belgium. Most accounting software generates this file directly. Our article on filing annual accounts with the NBB covers the procedure, costs and penalties.

Once filed, these documents become public. Customers, banks and competitors can therefore consult them freely. This transparency protects the company's partners.

Common mistakes and tips

Some oversights prove costly. First, late filing triggers higher fees. Second, a missing filing worries banks and suppliers. In addition, the wrong format sometimes forces a correction. Finally, repeated delays expose the company to heavier sanctions.

A few habits limit these risks. Prepare the year end with your accountant several weeks ahead. Also check consistency with the corporate tax return. If you need a professional, see our tips for choosing an accountant.

Finally, careful annual accounts reflect the true health of the business. They form the basis of any loan request or funding round. A banker also often compares them with your forecast. To prepare that conversation, read how to win over your bank.