The end of the financial year brings with it one obligation that every company must fulfill — the preparation of annual financial report (GFO). For many, it is just a document "for the register", but in fact it is the most important snapshot of the financial condition of the business.
In this manual, an accounting firm Rodi Consult (Varna) explains what a GFO is, what reports it consists of, and what the deadlines are — updated for 2026.
In short: The annual financial report presents the financial position, results and cash flows of the enterprise for the year. It consists of a balance sheet, income statement, cash flow statement and equity statement. It is published in the Commercial Register by 30 September.
What is an annual financial statement?
The annual financial statement is the result of the annual accounting close. Its purpose is to present information about the property of the enterprise — assets (resources) and liabilities (their sources: equity and borrowed capital). It is used by owners, creditors, investors and institutions.
What reports does the financial statements consist of?
- Accounting balance sheet — assets and liabilities as of December 31.
- Income statement — income, expenses and financial result.
- Cash flow statement — incoming and outgoing payments; shows liquidity.
- Statement of equity — capital movements and distributed dividends.
Important: profit on paper does not mean money in the account - income from an unpaid invoice is included in the income statement, but not in cash flows.
Publicity and deadlines
Every enterprise that has carried out activity publishes its financial statements in the Commercial Register. until September 30. In the event of an audit, the audit report is also published. Micro and small enterprises without an audit may publish only a balance sheet. If the company has not performed any activity — declaration of inactivity until June 30.
When is an independent audit mandatory?
Required for medium and large enterprises. The little ones are audited if exceeded at least two out of three indicator:
- assets — about 2,045,000 euros (4,000,000 BGN);
- net income — about 4,090,000 euros (8,000,000 BGN);
- staff — 50 people.
The financial statements are prepared by law by an accountant. If you are still choosing the form of activity, see Freelance or company - which is more profitable?, and for the profit tax - corporate tax.
FAQ
What is an annual financial report?
The annual financial statement (AFS) is the main financial document of the enterprise. It presents the financial position, operating results and cash flows for the year in a structured manner and includes a balance sheet, income statement, cash flow statement and equity statement.
Until when is the Annual Financial Statement published in the Commercial Register?
The annual financial statement is published in the Commercial Register by September 30 of each year. When the enterprise is subject to an independent financial audit, the audit report is published together with the statement.
What do I do if the company has not been operating?
If no activity was carried out during the year, instead of the GFO, a declaration of lack of activity is submitted to the Commercial Register by June 30 of the following year. It is declared once - for the first reporting period without activity.
Which companies are subject to mandatory audit?
Medium and large enterprises are subject to mandatory independent financial audits. Small enterprises are audited if they exceed at least two of three indicators during the year: assets ~2,045,000 euros (4,000,000 BGN), net revenues ~4,090,000 euros (8,000,000 BGN) and 50 employees.
Who prepares the annual financial report?
According to the Accountancy Act, the annual financial statement is prepared by an accountant with the appropriate education and professional experience. That is why companies use an accounting firm - the correct preparation of the AFS requires professional qualifications.
The conclusion
The annual financial report is not a formality — it shows the real health of the business and is a public document with a legal deadline (September 30). Its correct preparation requires professional qualification.
Is the end of the year approaching? Explore Rodi Consult accounting services or is contact us. Phone: +359 893 474 576.
This article is for informational purposes only and does not constitute accounting or tax advice. Please consult an accountant for your specific situation.
