Standardizing Standard Business Reporting: A business challenge Bookmark has been added
Standardizing Standard Business Reporting: A business challenge
According to recent investigations, only 43% of the applicable Dutch legal entities have filed their financial statements of 2016 within the required term of 12 months after balance sheet date*. How can it be that 57% of the applicable Dutch legal entities are not meeting legal requirements?
The financial statements 2017 should be prepared before October 31st of 2018 and should be filed before December 31 of 2018 the latest. Non-compliance with the filing obligations for financial statements at the trade register of the Chamber of Commerce is an economic offense in the context of article 1 sub 4 Economic Offences Act (WED). This may result in penalties, and may in case of bankruptcy or other situations trigger director liability for the company’s deficit. But that is not all. The date of filing of the financial statements is often interpreted as a signal indicating the ‘attitude’ of the legal entity. Not living up to the requirements may result in a negative image of the company in the minds of the related to parties involved in the legal entity, such as clients, potential investors or other stakeholders, ultimately causing them to shift their interest onto other service providers.
But why are companies neglecting to live up to expectations, and have numbers even been deteriorating over the years? As per 2016 the Standard Business Reporting requirements were imposed, meaning that from that time onwards all financial statements should be filed digitally instead of in paper. On top of that, companies are facing increased legislation when it comes to filing their financial statements.
Getting on top of digital reporting while conforming to new rules and regulations proves to be a challenge. As a solution, some managers decide to look for support outside their companies, ensuring them to file before the set deadlines while following an efficient process from the start. Next to maintaining a positive image, this allows them to spend their time and resources not on administrative tasks, but on what really matters: core business development.
Do you recognize this issue and do you not want to risk penalties, a damaged business image, or even worse? Deloitte Business Process Solutions offers support in the domain of Standard Business Reporting. Interested? Contact Nico Hoogendoorn at +3182881809 or firstname.lastname@example.org.
*Financieel Dagblad, 2018