Explain the balance sheet as well as profit
Rising receivables, inventory and approaching repayments can weaken liquidity despite a positive result. Review revenue quality, working capital and commitments together instead of starting and ending with net profit.
Distinguish recurring performance from exceptional items
One-off income, impairments and restructuring need supporting contracts, project information or provision calculations. Reconcile intercompany balances before consolidation; an elimination should not conceal a missing invoice or interest entry in an individual company.
Turn the review into decisions
Record follow-up on payment terms, financing or investment, using current information alongside the annual accounts. Preparation, adoption and filing remain different steps. The client supplies complete and accurate information, and the board retains statutory responsibility. Any external audit is a separate engagement.
Source and background: Waarom klanten meer verwachten dan een jaarrekening.
