The financial statements represent the mathematical closing of a business year. They present the financial position and performance of a company. Pursuant to section §§ 222ff of the Companies Code (Unternehmensgesetzbuch, UGB), the financial statements consist of a balance sheet and an income statement, the financial statements of incorporated companies must also contain notes. If appropriate, the financial statements are complemented by a management report. Small traders and freelancers are not required to prepare financial statements, they generally compile a statement of revenues and expenses.