Annual Financial Statements: What Businesses Need to Know About Preparation and Publication

Annual financial statements (AFS) are the final outcome of a company’s accounting work for a financial year. They present the financial position of the business, its performance and information used by owners, managers, banks, business partners and institutions when making decisions. Good annual financial statements therefore begin long before they are prepared — with consistent day-to-day accounting and a properly organised year-end close.

What are annual financial statements?

The exact content of the annual financial statements depends on the category of the undertaking, the applicable accounting framework and the statutory requirements. Depending on the circumstances, the reporting package may include a balance sheet, income statement, cash flow statement, statement of changes in equity and notes or other explanatory information.

A universal template should not be used without considering the specific company. Micro, small, medium-sized and large undertakings are subject to different presentation and publication requirements, and some companies may also have additional audit or reporting obligations.

What should be reviewed before the statements are prepared?

Year-end closing normally includes a series of control procedures designed to ensure that the accounting records provide a reliable basis for reporting:

• reconciling bank and cash balances;
• reviewing receivables from customers and liabilities to suppliers;
• performing inventories and reviewing assets, goods and materials;
• reviewing depreciation, settlements, advances and accruals;
• checking for documents relating to the reporting period that were received later;
• analysing the accounting financial result and the required tax adjustments;
• reconciling the information used for annual tax and statistical reporting.

When day-to-day accounting is well organised, this process is considerably more predictable. If discrepancies have accumulated during the year, year-end closing can turn into a much more extensive review of documents and balances.

When must annual financial statements be published?

Under the Bulgarian Accountancy Act, traders publish their annual financial statements through the Commercial Register by 30 September of the following year. Before filing, it should be clear which statements are subject to publication, how they have been approved by the competent corporate body and which accompanying documents are required for the particular undertaking.

The publication deadline should not be confused with the deadlines for tax returns and statistical reporting. These are separate obligations and a well-organised process monitors each of them independently.

Common year-end closing problems

Practical risks include unreconciled balances, missing primary documents, incorrectly classified assets and expenses, advances that have not been cleared, discrepancies between accounting and tax records and late preparation of the resolutions required to approve the financial statements.

A better approach is to begin before the end of the year: identify missing documents, confirm significant balances and flag transactions that require additional analysis.

Annual financial statements as a management tool

Beyond being a statutory obligation, the annual financial statements provide a basis for assessing profitability, indebtedness, liquidity and the structure of the company’s assets. When management understands what lies behind the figures, the statements can support planning for investments, financing and future business decisions.

If your day-to-day accounting is managed elsewhere but you need a review and completion of the financial year, see DESLIN’s Year-End Accounting & Financial Closing service.

This material is for general information only and is current as of 21 August 2026. Specific obligations depend on the type, category and activities of the undertaking.