The Annual Financial Statements Deadline Is Approaching – What Should Managing Directors Pay Attention To?

May 26, 2026 | Author: Szilvia Sarkadi Nagy, Managing Director and Partner at MGI-BPO

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The Deadline for Annual Financial Statements

If your company does not apply a different financial year, then May 31 is an important date every year: this is the deadline for preparing, approving, and publishing the annual financial statements. At first glance, this may seem like a task for accountants only, but in reality, managing directors and owners also carry several important responsibilities in connection with it.

In recent years, the practice of the authorities has noticeably changed: both the Hungarian Tax Authority (NAV) and the Court of Registration react much faster if annual financial statements are not published, and the legal consequences have become significantly more severe.

Reviewing the Annual Financial Statements as a Managing Director

Once the annual financial statements are completed, the most important task for the managing director is to review and understand them. There is no need to be an accounting expert, but it is definitely advisable to look at the key figures: whether the revenue, costs, and profit figures are realistic and consistent with how the business year is evaluated internally. If any discrepancies are noticed, it is highly recommended to discuss them with the accountant before submission.

Decision-Making Following the Annual Financial Statements

It is also the responsibility of the managing director (and the owners) to make the necessary decisions. This includes, for example, determining dividend payments, which requires a formal resolution and is also published as part of the annual financial statements.

In addition, it is advisable to review the notes to the financial statements, as they contain explanations and supplementary information that provide context behind the figures.

Publication of the Annual Financial Statements

The Auditor’s Report

It is important to highlight that if the company is subject to a statutory audit, the annual financial statements are only valid together with the auditor’s report. The auditor’s report must also be attached during publication; otherwise, the financial statements are not considered properly submitted.

Documents Required for Publication

Furthermore, it is not sufficient to upload only the balance sheet. All required documents must be submitted together. These typically include:

  • the balance sheet,
  • the profit and loss statement,
  • the notes to the financial statements,
  • the resolution regarding the allocation of profits,
  • and, where applicable, the auditor’s report.

If any of these documents are missing, the authorities will treat the financial statements as not having been submitted at all.

How the Annual Financial Statements Are Published

Annual financial statements can be published through the OBR system on the e-beszamolo.im.gov.hu website. The submission uses an .obr file generated by accounting software, which contains both the financial data and the attached documents.

Technically, the process is relatively quick, but it is important to verify the submission status in the system afterward.

The upload is usually performed by the managing director, since legally the managing director is responsible for publication. If the company has a Company Gate (Cégkapu) administrator or another authorized representative, they may also handle the upload, but the legal responsibility remains with the managing director.

Consequences of Failing to Publish the Annual Financial Statements

What happens if the annual financial statements are not published?

NAV proceeds in several stages. First, it sends a notice, then it may impose a default penalty, which can amount to several hundred thousand forints. If the obligation continues to remain unfulfilled, the fine may increase up to HUF 1 million, and ultimately the company’s tax number may even be cancelled, which practically makes the company unable to operate.

In addition, the Court of Registration may also take action and may even declare the company dissolved.

Public Availability of Annual Financial Statements

There is another aspect of publishing annual financial statements that is often underestimated: they are fully public.

Anyone — including potential employees, business partners, competitors, or prospective clients — can access the company’s financial data from previous years with just a few clicks. Revenue, profit, equity, and even dividend amounts are publicly available, providing a detailed picture of the business.

Conclusion: The Role of Annual Financial Statements in a Company’s Life

Overall, annual financial statements are far more than a mandatory administrative obligation. As a managing director, it is worth viewing them as one of the company’s most important public documents — a document that communicates not only with authorities but also with the market.

With a little attention, fines and official procedures can be avoided, and the company can ensure that the public image reflected by its financial data accurately represents reality.

If you are looking for a long-term partner for preparing your financial statements,

managing accounting tasks,

and supporting management decision-making,

feel free to contact the MGI-BPO team!