Sole trader financial statements in Finland: do you need them?

Karma Accounts · Published 9 October 2026

Usually, no. Under the general rules, a Finnish sole trader (toiminimi) must prepare financial statements (tilinpäätös) only if at least two of the micro-company limits were exceeded in both the financial year just ended and the one before it, or if it keeps double-entry books with a financial year other than the calendar year. Legislation for a licensed or supervised sector may require them in other situations. Every toiminimi still closes its books and files the business tax return (Form 5) every year.

What the law actually says

The Tax Administration says a sole trader "usually" does not need financial statements. The conditions are in the Accounting Act (kirjanpitolaki, KPL), chapter 1 section 1 a, as in force since 2016: financial statements are required if at least two of the micro-company limits in KPL 1:4b were exceeded both in the financial year just ended and in the one immediately before it:

balance sheet total 450 000 euros
turnover 900 000 euros
10 employees on average during the financial year

These apply to financial years starting on 1 January 2025 or later (amendment 605/2024); some guides, including a Tax Administration page, still show the older 350 000 and 700 000 euros.

The second trigger is the financial year. A sole trader's financial year is the calendar year unless the business keeps double-entry books and chooses another period, and for such a year KPL 1:4 requires financial statements regardless of size.

The decision table

Your toiminimi	Financial statements?	Rule
Calendar year, two limits not exceeded in both financial years	not required	KPL 1:1a
Two of the three limits exceeded in both of the last two financial years	required, micro format, within 4 months	KPL 1:1a, 3:6
Double-entry books and a non-calendar financial year	required, whatever the size	KPL 1:4
Business needing a licence or under supervision	check the sector's own rules	KPL 1:1a
Two of 15 million turnover, 7.5 million balance sheet, 50 staff exceeded in both financial years	also file with PRH within 6 months	KPL 3:9

Double-entry books alone do not make financial statements compulsory. Whether you must keep double-entry books is decided by separate, lower limits: see our article on toiminimi or Oy.

When financial statements are required, they contain a balance sheet, an income statement and notes, with the previous financial year's figures for comparison (KPL 3:1). They are in Finnish or Swedish and in euros (3:5), prepared within four months of the end of the financial year (3:6), and dated and signed by you as the owner (3:7). A micro business may use the shorter formats in Decree 1753/2015 and does not need a management report (toimintakertomus).

Filing with the Finnish Patent and Registration Office (PRH) is separate. Under KPL 3:9 only a sole trader larger than a small company files: per PRH, at least two of 15 000 000 euros of turnover, 7 500 000 euros of balance sheet total and 50 employees on average, exceeded in both of the last two financial years. PRH's instructions for private traders say to file within six months in the YTJ service, free of charge. Most sole traders do not file financial statements with PRH.

Financial statements, year-end work and the tax return

Financial statements (tilinpäätös). Needed only in the cases in the table.
Closing the books (tilinpäätöskirjaukset). Every toiminimi does this, but not in the same way. The bank balance in the books is reconciled to the bank statement, and unpaid sales invoices and bills are listed, since the Act requires that they can be shown at any time. Whether they are also booked as income and costs depends on the method. Double-entry books are generally kept on the accrual basis (KPL 2:3). Single-entry books are kept on a payment basis, and the Tax Administration's guidance says a professional practitioner (ammatinharjoittaja) with single-entry books is taxed on that basis too (EVL 27 a), while a trader (liikkeenharjoittaja) must adjust to the accrual basis for tax. The steps are in our article on year-end closing.
The business tax return (elinkeinotoiminnan veroilmoitus 5). Filed in MyTax (OmaVero) every year, even without activity. It draws on your bookkeeping, with the adjustments tax rules require: income and costs, assets and debts and, depending on your method, equity and private withdrawals. The instructions do not ask for financial statements as an attachment. The most common mistakes are in our article on the sole trader tax return.

A worked example

Simplified illustration. Invented figures for a small toiminimi with one owner, no staff and double-entry, accrual-basis books, calendar year 2026, set out roughly in the micro-company format. A real set would also show 2025 figures and notes.

Income statement 2026	In Finnish	Euros
Turnover	Liikevaihto	68 000
Materials and services	Materiaalit ja palvelut	−4 000
Depreciation	Poistot	−1 500
Other operating expenses	Liiketoiminnan muut kulut	−9 200
Operating profit	Liikevoitto	53 300
Financial costs	Rahoituskulut	−300
Profit for the financial year	Tilikauden voitto	53 000

Balance sheet 31.12.2026	In Finnish	Euros
Fixed assets: machinery and equipment	Koneet ja kalusto	4 500
Current assets: trade receivables	Myyntisaamiset	6 000
Current assets: cash at bank	Rahat ja pankkisaamiset	13 700
Total assets	Vastaavaa yhteensä	24 200
Equity	Oma pääoma	15 000
Long-term: bank loan	Lainat rahoituslaitoksilta	2 500
Short-term: bank loan, next 12 months	Lainat rahoituslaitoksilta	1 500
Short-term: trade payables	Ostovelat	1 200
Short-term: VAT payable	Muut velat	4 000
Total equity and liabilities	Vastattavaa yhteensä	24 200

Change in equity 2026	Euros
Equity 1.1.2026	12 000
Private withdrawals (yksityisotot)	−50 000
Profit for the financial year	53 000
Equity 31.12.2026	15 000

How to read it:

The profit of 53 000 euros links the tables: it flows into equity, and closing equity of 15 000 euros is the balance sheet figure.
The 50 000 euros taken out is not a cost. A sole trader cannot pay themselves a salary, so it is a private withdrawal: it lowers equity, not the profit.
There is no income tax line. A toiminimi's profit is taxed in the owner's own taxation, split into capital income and earned income. The split for 2027 uses the business's net assets for tax at the end of 2026, which are not the same as the equity above: ordinary bank deposits, for example, are generally left out, and 30 % of wages paid is added. You may also ask for a 10 % capital share or for all of it to be taxed as earned income. See our article on net assets and the capital income share.

What your accountant needs at year-end

bank statements for every business account for the whole year
all sales invoices and the receipts for every cost
a list of unpaid sales invoices and unpaid bills on 31 December
a stock count on 31 December, if you sell goods
invoices for equipment or vehicles bought or sold during the year
loan statements showing the balance on 31 December
a logbook (ajopäiväkirja) if you use your own car for the business

Deadlines for the tax return and any financial statements are in our article on financial statements deadlines.

What we do

We keep the books, close the year and prepare the Form 5 tax return for sole traders from 69 euros a month plus VAT 25.5 %, with the software and the year-end included and no limit on receipts. We monitor the thresholds and tell you promptly when financial statements become necessary. We are based in Helsinki and work online across Finland: see sole trader accounting.

Sources

Please note: this is general information about Finnish rules, not advice for your own situation, and the rules change. Ask us before you act on it.

Accounting for your toiminimi

Bookkeeping, VAT returns and the business tax return from 69 € a month plus VAT, with no limit on receipts. See accounting for sole traders or accounting for food couriers.

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