As we enter 2026, the preparation and approval of the 2025 annual financial statements is approaching. For many companies, this process is seen primarily as a compliance exercise — something that must be completed to meet statutory requirements and deadlines.

However, annual financial statements can be much more than that. When used correctly, they provide valuable insight into performance, profitability, and financial risk, and serve as a solid foundation for decision-making in the year ahead. At the same time, they have limitations, particularly if the work is rushed or lacks proper analysis.

So what should companies focus on at the start of 2026 to ensure the financial statements are actually useful?

1. Data quality before speed

One of the most common pitfalls is prioritising fast completion over reliable figures.

Key focus areas:

• Thorough reconciliation of all balance sheet accounts
• Cleaning up old outstanding items
• Proper accruals and documented accounting judgments

High-quality figures create trust in the numbers. The downside is that this requires more effort early on, but it often saves time later.

2. Understanding the result — not just reporting it

The final profit or loss is of limited value without context.

Key questions:

• What actually drove profitability in 2025?
• Which items were one-offs, and which are recurring?
• Are margins sustainable going into 2026?

This analysis is rarely visible in the published accounts, but it is essential internally.

3. Cash flow — the overlooked reality check

Profitability and liquidity do not always move together. This makes cash flow analysis critical.

Focus on:

• The link between profit and operating cash flow
• Working capital tied up in receivables and inventory
• Liquidity buffers for the coming year

Cash flow often provides a more realistic view of financial health than profit alone.

4. Use the balance sheet actively

The balance sheet is more than a formal appendix — it tells a story about resilience and risk.

Review areas such as:

• Equity development and solvency
• Debt structure and maturity profile
• Dependence on owners, group companies, or key customers

A useful question to ask: How would the company cope with a weaker year ahead?

5. Notes and accounting policies — where the explanations live

Notes to the accounts are often treated as a formality, but they contain critical explanations.

Use the notes to:

• Clarify accounting judgments and estimates
• Document key accounting principles
• Ensure consistency year over year

The value of good notes often becomes apparent only when reviewing several years of accounts.

6. Connecting the accounts to 2026

Annual accounts look backwards by nature, but their real value lies in how they are used going forward.

Link the financial statements to:

• Budgets and targets for 2026
• Identified improvement areas
• Strategic decisions on growth, cost control, or investment

A practical approach is to prepare a short internal “lessons learned” summary based on the annual accounts.

Conclusion

Annual financial statements will always have a formal and statutory purpose. That structure is a strength — but also a limitation if it becomes the only focus.

Companies that extract real value from their accounts:

• start the process early
• prioritise data quality
• analyse both strengths and weaknesses

Done right, the 2025 annual accounts become more than a closing exercise — they become a better starting point for 2026.

Important:
The annual financial statements must be approved and signed within six months of the balance sheet date (by 30 June). Submission of the accounts must be completed no later than 31 July. https://www.brreg.no/en/submission-of-annual-accounts/?nocache=1768241928976