deWaardKramer can prepare financial statements for its clients. In most cases in draft form in the first instance. The draft statements provide the basis of a discussion meeting with the client. The points raised at this meeting may prompt some changes and adjustments, and the final version of the financial statements can then be prepared. We can also prepare the condensed financial statements that must be lodged with the Chamber of Commerce.
What are the financial statements?
In effect the financial statements are a summary version of your books and accounts. Formally the financial statements consist of a balance sheet, a profit and loss account (also known as income statement), notes to the accounts, and other information. The financial statements must meet the statutory presentation requirements where applicable.
Who uses them?
The users of the financial statements can be divided into two groups, external users and internal users. External users include the Tax Office, banks and the public. Owners of a private limited company (BV) are obliged to lodge a condensed version of the financial statements with the Chamber of Commerce. These are open to the public for inspection.
The other users of the financial statements are the internal users, that is, you and your shareholders (if any). The financial statements are about accountability. They will show whether sales and expenses meet budget projections, whether specific cost items are moving in line with previous years, and so on. On the basis of these findings the financial statements can be used as a control tool; in other words, the financial statements also provide substantive management information.
Types of engagement
The financial statements can be prepared in accordance with the standards for compilation, review or audit engagements.