Using the annual accounts

Annual accounts give you an insight into the financial developments of a company and its financial position in the last accounting year for which accounts were filed. Annual accounts are therefore an important source for estimating bad debt risks. Status enquiry agencies, credit suppliers and leasing companies make frequent use of the information in the annual accounts for this reason.

Tips for reading financial information

• Check whether the legal person files accounts every year. Does this always happen in good time and at about the same time of year? A change to later filing or even filing too late could indicate certain difficulties.
• If the legal person has taken advantage of group exemption, request the annual accounts of the group company instead. These will also tell you which legal entities belong to the group.
• If the legal person has not yet filed the accounts, check to see whether there is another shareholder who also has legal authorization. Perhaps this shareholder has already filed the accounts.
• Always check whether the legal person with whom you do business is the operating company or the holding company. Check with which legal person the accounts were filed and where the greatest financial risk lies. Then ask your business partner to sign the contract with the legal person with the greatest financial power.
• Remember that the obligation to file accounts may not be relevant for all companies formally registered abroad.   

A 'Delaware Corporation', for example, which is actually based in Delaware but which also operates outside the Netherlands, does not need to file accounts in the Netherlands. However if the Corporation constitutes a company formally registered abroad, it will be required to do so.

Limitations
Annual accounts never provide a guarantee about the financial position of a company. The figures which are available for inspection at the Chamber of Commerce are mostly a record of one moment in time over a year ago. Much can change in a company during the course of a year.

Charges
Annual accounts can be inspected by anyone anonymously, and anyone may request a copy. The charge is 5.90 EUR for the first page and 0.45 EUR for each additional page. Annual accounts may be requested up to 7 years after filing. The annual accounts can also be inspected on the Dutch part of this site: search a company , then push the button "jaarrekeningen" (annual account).

Students, pupils and job applicants
Do you make use of annual accounts for study purposes or job applications? If so, it might be better to request these from the company itself. Large companies in particular often supply more comprehensive versions of their annual reports to people who are interested. This is mostly free of charge, unlike obtaining these documents from the Chamber of Commerce.