Balance sheet total
The sum of all assets (or, equivalently, all liabilities and equity) on the balance sheet. The balance sheet total is one of the three size criteria that decide whether a legal entity is micro, small, medium-sized or large.
What does balance sheet total mean?
The sum of all assets (or, equivalently, all liabilities and equity) on the balance sheet. The balance sheet total is one of the three size criteria that decide whether a legal entity is micro, small, medium-sized or large.
The balance sheet total adds up the assets as valued on the balance sheet date; it is not turnover and not the balance of all ledger accounts. For the size class, Dutch law uses the assets on the basis of acquisition and production cost, alongside net turnover and number of employees.
How does it work?
The balance sheet total is the sum of all assets and therefore also of equity, provisions and liabilities.
For the size class, the law uses its own measure: the value of the assets according to the balance sheet with notes, on the basis of acquisition and production cost (art. 2:395a(1)(a) DCC, art. 2:396(1)(a) DCC and art. 2:397(1)(a) DCC). A building carried at current value therefore counts at historical cost. The limits for financial years starting on or after 1 January 2024 are € 450.000 for micro, € 7,5 million for small and € 25 million for medium-sized. If the entity heads a group, you include the assets of the group companies as if you were consolidating (paragraph 2 of those articles).
Example
At the end of 2025 a BV has: fixed assets € 310.000, inventory € 60.000, accounts receivable € 85.000, bank € 25.000. Balance sheet total: € 480.000, above the micro limit of € 450.000. At the end of 2024 it was € 430.000. Net turnover was € 820.000 in both years, with six employees. On both balance sheet dates the BV meets at least two of the three micro criteria (turnover and employees), so it remains micro. If turnover also rises above € 900.000 in 2026, it meets only one criterion that year. Only when that is the case on two consecutive balance sheet dates does it become small.
In the annual accounts
Total of assets and of liabilities and equity; size criterion for all Title 9 legal entities.
Difference from equity
The balance sheet total says how large the company is, not how healthy. A BV with a € 2 million balance sheet total can have € 1,8 million of debt. Equity is the part that is not financed by debt and provisions; equity divided by balance sheet total is solvency. Taking out a loan and leaving the money in the bank increases the balance sheet total and leaves equity untouched.
Common mistakes
- Confusing the balance sheet amount with turnover
- Treating one limit as decisive on its own
What should you watch for?
- For the size classification, calculate with cost prices, not appraised values, and include group companies. The size class calculator runs through the three criteria.
- Look at two consecutive balance sheet dates; in the first and second financial year the first balance sheet date decides (art. 2:398(1) DCC).
- The balance sheet total is the denominator of solvency; recalculate it after every large financing with the ratio calculator.
Legal basis and source
art. 2:395a–398 DCC
Frequently asked questions
Does it matter for the balance sheet total whether the balance sheet is prepared before or after appropriation of profit?
No. After appropriation of profit, the proposed dividend moves from equity to liabilities. The sum of the liabilities and equity stays the same.
Can the balance sheet total fall while the company makes a profit?
Yes. Anyone who uses profit to repay a bank loan or pay a dividend reduces both assets and liabilities. The balance sheet total measures size, not result.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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