Financial statement in France: compliance, audit & reporting

Navigating the French financial system requires a multifaceted approach. To meet these demands, Vachon offers a suite of comprehensive services that cover every aspect of financial management. Our offerings include audit, accounting, taxation, payroll and human resources, consolidation, and specialized advisory services for foreign subsidiaries. Each service is meticulously designed to address specific challenges and provide long-term value.

Audit Services

In today’s fast-paced business environment, the reliability of financial information is paramount. Our audit services are structured to ensure that your financial reporting not only complies with regulatory standards but also offers a transparent and accurate representation of your financial position. We conduct:

  • Financial statement audits: Our audits are tailored to confirm that your financial statements reflect a true and fair view, whether you adhere to French GAAP, US GAAP, or IFRS standards. This process is essential for building trust among stakeholders and attracting potential investors.

  • Regulatory compliance audits: We evaluate your adherence to local laws and industry-specific regulations, identifying potential areas of non-compliance and recommending proactive measures to mitigate risks. Our rigorous audits help ensure that your operations are sustainable and legally sound.

Accounting services

Accurate and timely accounting is the foundation upon which sound financial strategies are built. Our accounting services are geared toward establishing a robust financial record that supports informed decision-making. We offer:

  • Bookkeeping: Precision in bookkeeping is critical for maintaining operational transparency. Our team manages the day-to-day recording of financial transactions with meticulous attention to detail, ensuring that every entry is both accurate and verifiable.

  • Financial reporting: We prepare comprehensive financial reports—including balance sheets, income statements, and cash flow statements—that are tailored to meet the needs of both local and international stakeholders. Our reports not only comply with statutory requirements but also serve as powerful tools for strategic planning and performance evaluation.

Taxation services

France’s tax landscape is known for its complexity, and navigating it without expert guidance can be challenging. Vachon’s taxation services are designed to demystify the intricacies of the French tax system, offering both strategic and operational support:

  • Tax planning and advisory: We collaborate with you to develop effective tax strategies aimed at optimizing your liabilities while ensuring full compliance with French tax laws. Our proactive planning helps you identify opportunities for tax savings and strategic investments.

  • Tax filing and representation: Our experienced professionals handle all aspects of tax filing, ensuring that your returns are submitted accurately and on time. Should any issues arise, we are prepared to represent your interests before French tax authorities, ensuring that your rights and obligations are managed efficiently.

Payroll and HR services

The well-being and satisfaction of your workforce are directly linked to the efficiency of your payroll and HR processes. At Vachon, we provide comprehensive solutions that ensure both compliance with French labor laws and the smooth operation of human resources:

  • Payroll processing: Our payroll processing service covers every aspect of employee compensation, from calculating salaries and deductions to managing disbursements. We ensure that your payroll operations comply with all relevant French regulations, thereby reducing administrative burdens and minimizing risk.

  • HR advisory: In today’s competitive labor market, strategic human resource management is essential. We offer expert advice on employment contracts, benefits administration, and overall compliance with French labor laws, helping you create a supportive work environment that attracts and retains top talent.

Consolidation services

For companies with multiple entities, consolidated financial statements are indispensable in presenting a coherent and unified financial picture. Our consolidation services are designed to integrate the financial data of your various subsidiaries seamlessly:

  • Financial Consolidation: We combine financial data from multiple entities to generate consolidated financial statements that accurately reflect the overall financial position of your organization. This integrated approach is essential for strategic decision-making at both the subsidiary and parent company levels.

  • Intercompany Reconciliation: Ensuring consistency and accuracy in transactions between entities is critical. Our services include rigorous intercompany reconciliation, which helps maintain integrity in financial reporting and eliminates discrepancies across your organization.

Audit

AUDIT

ACCOUNTING

PAYROLL

Specialized support for foreign subsidiaries

Operating a subsidiary in France presents unique challenges, from cultural differences to regulatory hurdles. Vachon excels in providing specialized support that caters to the distinct needs of foreign-owned companies:

  • Bilingual expertise: Our teams are not only fluent in French and English but also possess a deep understanding of the nuances in both languages, ensuring that your financial communications are precise and effective.

  • Customized reporting: We recognize that every parent company has specific reporting requirements. Our customized reporting services ensure that the financial information of your French subsidiary is aligned with the standards and expectations of your global headquarters.

  • Expatriate advisory services: For expatriates and impatriates, navigating French tax and regulatory requirements can be daunting. We offer specialized advisory services to help international employees manage their financial obligations effectively, ensuring that they remain compliant while optimizing their tax positions.

 

Commitment to excellence and human values

At Vachon, our commitment to excellence extends beyond technical expertise. We believe that trust-based relationships and ethical practices are fundamental to long-term success. Our organizational strength is built on three core pillars:

  • Experience: With decades of hands-on experience across a diverse range of industries, we have developed the acumen to handle complex financial challenges. This deep-rooted expertise allows us to deliver exceptional service that meets and exceeds our clients’ expectations.

  • Organizational strength: Our structured approach to service delivery is designed to ensure efficiency, accuracy, and responsiveness. We implement best practices and innovative methodologies to create streamlined processes that enhance both operational performance and client satisfaction.

  • Human values: We understand that the cornerstone of any successful business relationship is trust. Our client-centric philosophy emphasizes open communication, transparency, and a collaborative spirit, ensuring that every interaction is built on a foundation of mutual respect and shared success.

 

Conclusion

Navigating the complexities of financial reporting in France requires a deep understanding of local regulations and practices. For foreign subsidiaries, partnering with experienced professionals like Vachon ensures compliance, accuracy, and peace of mind, allowing you to focus on your business growth.

Frequently Asked Questions (FAQ)

1. What are the key components of a financial statement in France?

A financial statement in France typically includes:

  • Balance Sheet (Bilan) – Shows assets, liabilities & equity.

  • Income Statement (Compte de résultat) – Details revenues & expenses.

  • Cash Flow Statement (Tableau des flux de trésorerie) – Tracks cash movement.

  • Notes to Financial Statements (Annexes) – Provides essential details on accounting policies & key disclosures.

2. What accounting standards apply to financial statements in France?

French companies must comply with:

  • French GAAP (Plan Comptable Général - PCG) for local reporting.

  • IFRS (International Financial Reporting Standards) for listed companies & subsidiaries of foreign groups.

  • US GAAP (Generally Accepted Accounting Principles) for U.S. parent companies with French subsidiaries.

3. How often must companies in France file their financial statements?

  • Annually: All French companies must submit financial statements to the Commercial Court Registry (Greffe du Tribunal de Commerce) within 6 months after year-end.

  • Quarterly/Half-Yearly: Required for listed companies per AMF (Autorité des marchés financiers) regulations.

4. What are the penalties for late submission of financial statements in France?

Failure to file financial statements on time can result in:

  • Administrative fines up to €3,750 for companies.

  • Director liability penalties up to €9,000 or potential legal consequences.

  • Company dissolution risks for prolonged non-compliance.

5. How long should financial records be kept in France for compliance?

Under Article L123-22 of the French Commercial Code, businesses must retain accounting records for 10 years from the end of the financial year to comply with tax and audit requirements.