Does a sole proprietorship need annual accounts?
Short answer
A sole proprietorship does not have to file annual accounts with the Chamber of Commerce (KvK). You do need a balance sheet and profit and loss account for your income tax return, and banks and mortgage lenders often ask for them. A BV is required to file annual accounts.
Updated on · Reviewed by the tax advisers at Boekhoudvriend
For a sole proprietorship, general partnership (VOF) or professional partnership (maatschap), the annual accounts are mainly for tax purposes and for yourself. They show how your business is doing and form the basis of your tax return.
When you need annual figures
- For your income tax return
- When applying for a mortgage, often for the last three years
- For a business loan or lease
- If you want to determine whether a BV would be more favourable
At Boekhoudvriend, the annual accounts are included in every package, including for a sole proprietorship.
Sources
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.