Closure of the annual financial statements

Having a clear financial statement and overview makes it easier for the company to forecast business developments, manage its resources and allocate its budget efficiently.

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Depending on the size of the company and the tax threshold, the balance sheet is drawn up in two ways:

- In simplified system (case of SMEs)

- In the basic system (case of large enterprises)

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The structure of the balance sheet must include:

- The balance sheet itself

- Profit and loss account (for public institutions "profit and loss account")

- Explanatory note

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The balance sheet shows assets (capital from reported activities) and liabilities (equity and liabilities), with assets listed on the right-hand side of the document, liabilities on the left-hand side and subtotals for each category at the bottom of the page.

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The profit and loss account is completed according to the information from the income and expenditure accounts.

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The explanatory notes differ from one company to another, but they must contain the company's accounting policy.

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As mentioned above, this document is drawn up twice a year, on 30 June and 31 December, in accordance with the legislation in force. Firms are also obliged to submit the balance sheet to the Financial Administration at the registered office where they are registered. The filing deadlines remain unchanged this year. Thus, the deadline for filing the 2021 balance sheet is:

- 30 May 2022 for SRL, SA, etc. (up to 150 days after the end of the financial year)

- 2 May 2022 for NGOs and Foundations (up to 120 days after the end of the financial year)

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If the company has not carried out any activity since its establishment until the financial statements are drawn up, it is exempted from filing the balance sheet. However, the person responsible for the management of the company must file an affidavit to this effect with a territorial unit of the Ministry of Finance.

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Under current legislation, companies are required by law to draw up and submit a balance sheet twice a year, but it is recommended that internally, companies produce such a document every month to always be aware of their financial situation. To save time when drawing up your financial report, use an online platform such as Banqup which takes the burden of administrative operations off your shoulders and monitors your financial situation constantly.

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