Financial statements

The accounting period for a company is typically 12 months. Once an accounting period has ended, it is time to prepare the financial statements (large companies also prepare an annual report). For a small business, the financial statements include a profit and loss statement, a balance sheet and notes to the financial statements. All these documents must meet strict requirements defined in the Bookkeeping Act, the Bookkeeping Decree and corporate law.

The board and CEO of a company or cooperative, the fully liable members of a partnership or a sole proprietor will confirm the financial statements and annual report with their signatures. If the company has an accountant, the accountant will check the accounting and management practices of the company.