For many small business owners, the annual accounts feel like something that belongs to the accountant’s calendar, not to daily business reality. Yet the obligation for a CEO to prepare the annual statement in line with the company’s bylaws is not administrative decoration. It touches cash flow, dividend decisions, bank confidence and, in difficult times, personal liability. The numbers on paper are the backbone of trust.
In the Netherlands, the board of a BV must prepare the annual accounts within the period set out in the company’s bylaws. Usually that is five months after the end of the financial year. The shareholders can grant an extension of up to five additional months, but only if there is a valid reason. “Valid” is not a vague courtesy word. It means there must be a concrete explanation, complex restructuring, delayed information from subsidiaries, serious illness, or another objective obstacle. Simply being busy is not one of them.
For micro and small businesses, this matters more than it seems. The annual accounts are not just for filing with the Chamber of Commerce. They determine whether you can responsibly distribute profits. They influence how the bank assesses your financing. They shape how suppliers view your reliability. If accounts are consistently late without clear grounds, it sends a signal, internally and externally, that financial control may not be tight.
I once saw a small company postpone its accounts year after year because “the accountant will handle it later.” Meanwhile, the director withdrew dividends based on rough estimates. When the final figures were completed, the equity position was weaker than expected. Correcting that is not just unpleasant; it can create legal exposure. Directors are expected to know whether distributions are justified. Timely, properly prepared accounts are part of that responsibility.
The possibility of postponement exists for a reason. Business can be complex, and sometimes information genuinely arrives late. But postponement should be a considered decision, formally recorded, and based on a clear explanation. That discipline protects you. It shows that delay is the exception, not the pattern.
For small business owners, the lesson is calm and practical. Make the preparation of your annual accounts part of your business rhythm, not an afterthought. Check what your bylaws actually say about timing. If you need an extension, document the reason properly. And above all, use the annual accounts as a moment of financial clarity. Not because the law demands it, but because your business deserves it.
