Running a business in Finland comes with a set of legal responsibilities, and one of the most important is preparing annual accounts. Whether you are a small limited company or a growing enterprise, understanding the rules around annual accounts in Finland helps you stay compliant, avoid penalties, and keep your finances in good order. Finnish accounting requirements are governed primarily by the Accounting Act (kirjanpitolaki 1336/1997) and the Limited Liability Companies Act (osakeyhtiölaki 624/2006), both of which set clear obligations for businesses operating in the country.
This guide walks through who needs to prepare financial statements in Finland, what those statements must contain, the key deadlines to keep in mind, and the most common pitfalls businesses run into along the way.
Who must prepare annual accounts in Finland
Almost every business entity operating in Finland is legally required to prepare annual accounts, known in Finnish as tilinpäätös. This obligation applies to limited liability companies (osakeyhtiö), cooperatives, general and limited partnerships, and branches of foreign companies. Sole traders (toiminimi) are also subject to bookkeeping requirements, though their obligations are generally lighter depending on the size of their operations.
The scope and complexity of the annual accounts required can vary based on the size of the entity. Under the Accounting Act, companies are classified as micro, small, medium, or large based on thresholds for turnover, balance sheet total, and number of employees. Micro-enterprises and small companies benefit from simplified reporting requirements, while larger entities face more extensive disclosure obligations. Regardless of size, every company subject to the Accounting Act must produce a set of financial statements at the end of each financial year.
What annual accounts must include
Finnish annual accounts are not simply a summary of income and expenses. The Accounting Act defines a specific set of documents that together form a complete set of financial statements.
At a minimum, the annual accounts must include:
- Balance sheet (tase): A snapshot of the company’s assets, liabilities, and equity at the end of the financial year
- Income statement (tuloslaskelma): A record of the company’s revenues and expenses over the financial year
- Notes to the financial statements (liitetiedot): Supplementary information that explains and clarifies figures in the balance sheet and income statement
- Board of directors’ report (toimintakertomus): Required for medium and large companies, this narrative report describes the company’s operations, financial position, and future outlook
Larger companies and those subject to audit requirements must also include a cash flow statement (rahoituslaskelma). If the company has subsidiaries, consolidated financial statements may also be required. The notes to the accounts are particularly important because they provide the context regulators and stakeholders need to understand the numbers, and omitting required disclosures is one of the most common compliance issues we see.
Key deadlines for filing and approval
Meeting the right deadlines is essential to staying compliant with Finnish accounting requirements. The timeline is tied to the company’s financial year, which does not have to follow the calendar year but must last exactly 12 months.
For most limited liability companies, the annual accounts must be completed within four months of the end of the financial year. This means that for a company with a financial year ending 31 December 2025, the accounts must be finalised by 30 April 2026. The accounts must then be presented to and approved at the Annual General Meeting (yhtiökokous), which must be held within six months of the financial year end, so by 30 June 2026 in the same example.
Once approved, companies registered in the Finnish Trade Register must file their financial statements with the Finnish Patent and Registration Office (Patentti- ja rekisterihallitus, PRH). The filing deadline is two months after the AGM approval, giving a final deadline of 31 August 2026 for December year-end companies. Failure to file on time can result in the PRH issuing a reminder notice and, ultimately, a fine. It is worth noting that the Finnish Tax Administration (Verohallinto) also uses the financial statements as the basis for corporate tax assessments, so late or inaccurate accounts can create knock-on issues with tax compliance as well.
Common mistakes that delay annual accounts
Even well-organised businesses can find themselves falling behind on their annual accounts deadlines in Finland. The most frequent issues tend to stem from incomplete bookkeeping during the year rather than problems at the closing stage itself.
Some of the mistakes we encounter most often include:
- Missing or unreconciled receipts: Gaps in the accounting records mean the closing process cannot begin until the underlying data is complete
- Incorrect VAT treatment: Errors in how VAT has been recorded throughout the year require corrections before the accounts can be finalised
- Failure to account for depreciation: Fixed assets must be depreciated according to Finnish accounting rules, and overlooking this distorts both the balance sheet and the income statement
- Intercompany transactions not reconciled: For groups of companies, unresolved intercompany balances can hold up the entire closing process
- Late submission of information by the client: When bank statements, invoices, or payroll data arrive late, the accountant cannot complete the work on time
Staying on top of bookkeeping throughout the year, rather than leaving everything to the last few weeks, is the single most effective way to avoid delays. A clean set of records going into the year-end process makes the preparation of financial statements in Finland significantly smoother and faster.
How an accounting firm simplifies the process
Preparing annual accounts in accordance with Finnish legislation is a detailed, time-sensitive task. For most business owners, partnering with a professional accounting firm is the most practical way to ensure everything is done correctly and on time.
At Firmally, we handle the full annual accounts process for our clients, from reviewing the year’s bookkeeping and making necessary adjustments, to preparing the financial statements, coordinating the AGM documentation, and filing with the PRH. We stay up to date with changes in Finnish accounting legislation so our clients do not have to, and we flag any issues well before deadlines become a problem.
Beyond compliance, well-prepared annual accounts provide genuine business insight. The balance sheet tells you the true financial position of the company. The income statement reveals where margins are strong and where costs are creeping up. The notes and board report create a record of the year that is useful not just for regulators but for any future financing discussions or ownership changes. Annual accounts, done well, are a management tool as much as a legal obligation.
If you want to make sure your tilinpäätös is handled professionally and submitted on time, we are here to help. Get in touch with us to discuss how we can support your business through the annual accounts process and beyond.
