Accounting · Annual Financial Statements
Annual financial statements for businesses in Germany
Preparation of German statutory annual financial statements under HGB, including closing entries, account reconciliations, notes, tax reconciliations, E-Bilanz and preparation of the related German business tax returns.
German Statutory Accounts
Annual accounts start with reliable bookkeeping
Proper annual financial statements require complete ongoing bookkeeping and reliable reconciliation of material balance-sheet and profit-and-loss accounts.
At year-end, transactions must be allocated to the correct period, provisions assessed, assets valued and depreciation calculated. Receivables, liabilities, loans, shareholder accounts and tax accounts must also be reviewed and reconciled.
We connect this year-end work with subsequent German tax compliance. This allows the HGB accounts, tax values, E-Bilanz and business tax returns to be prepared through one coordinated closing process.
Scope of Services
Year-end accounting services for German businesses
The exact scope depends in particular on the legal form, size of the business, quality of the ongoing bookkeeping and applicable reporting and disclosure requirements.
Closing the financial bookkeeping
Review, reconciliation and completion of the accounting records at the balance-sheet date.
- Trial balances
- General ledger accounts
- Open receivables and payables
- Bank reconciliations
- Tax accounts
Balance sheet
Preparation and review of assets, liabilities and equity under German commercial law.
- Fixed assets
- Receivables
- Cash and bank balances
- Liabilities
- Equity
Profit and loss statement
Structured determination and presentation of the statutory annual result.
- Revenue
- Operating expenses
- Personnel expenses
- Depreciation
- Financial result
Accruals and deferrals
Allocation of income and expenses to the correct accounting period.
- Prepaid expenses
- Deferred income
- Unbilled items
- Prior-period transactions
Provisions
Assessment and recording of provisions required under German commercial law.
- Tax provisions
- Employee-related provisions
- Outstanding invoices
- Other obligations
Depreciation
Review and update of fixed assets and the required depreciation entries.
- Fixed asset register
- Additions and disposals
- Useful lives
- Scheduled depreciation
- Impairments
Shareholder accounts and loans
Reconciliation of material transactions between the company and its shareholders.
- Shareholder loans
- Current accounts
- Managing director compensation
- Distributions
- Equity movements
Notes and year-end documentation
Preparation of the statutory and supporting year-end documentation required for the relevant legal form and size category.
- Notes where required
- Account documentation
- Fixed asset schedule
- Closing entries
- Documentation of material balances
Disclosure and filing
Preparation of statutory disclosure or filing requirements applicable to German corporations.
- German Company Register
- Size-dependent requirements
- Balance-sheet information
- Notes where disclosure is required
- Deadline coordination
Tax reconciliation
Review of differences between German commercial accounting and applicable German tax values.
- HGB financial statements
- Tax adjustments
- Reconciliation statement
- Tax balance sheet
- Documentation of differences
E-Bilanz
Electronic preparation and transmission of German tax balance-sheet data to the tax authorities.
- Taxonomy mapping
- Tax balance-sheet data
- Profit and loss data
- Reconciliation data
- Electronic transmission
German tax returns
Use of the reconciled year-end figures as the basis for the related business tax filings.
- Corporate income tax
- Trade tax
- VAT
- Income tax for business owners
- Partnership and separate assessment returns
Process
From bookkeeping data to completed annual accounts
Data Transfer
Accounting data, ledgers, trial balances, bank information and year-end documentation are collected.
Account Reconciliation
Material balance-sheet and profit-and-loss accounts are reviewed and unresolved matters are identified.
Closing Entries
Accruals, provisions, depreciation and other necessary closing entries are prepared.
Accounts and Follow-Up Filings
Annual accounts, E-Bilanz, tax returns and disclosure requirements can then be completed in a coordinated process.
Commercial Law & Tax Law
From HGB annual accounts to German tax filings
For German businesses, statutory financial statements under HGB generally provide the starting point for the tax profit calculation. Commercial-law and tax-law accounting values can, however, differ and must be reconciled appropriately.
German statutory financial statements
The HGB annual accounts present assets, liabilities, income and expenses under German commercial-law accounting principles.
- Balance sheet
- Profit and loss statement
- Notes where required
- Recognition and measurement
- Year-end documentation
Tax reconciliation and E-Bilanz
Commercial-law figures are reviewed for German tax purposes and required tax differences are documented.
- Tax adjustments
- Reconciliation statement
- Tax balance sheet
- E-Bilanz
- Basis for German tax returns
Related Tax Compliance
Annual accounts and German business tax from one data set
Once the commercial-law and tax year-end work has been completed, the related business tax returns can be prepared using the reconciled financial data.
For GmbHs and UGs this particularly includes corporate income tax, trade tax and VAT. Partnerships may also require separate and uniform determination returns.
Coordinating bookkeeping, annual accounts and tax compliance helps identify discrepancies early and streamlines the subsequent tax filing process.
Legal Forms
Annual accounts for different German business structures
HGB annual accounts including E-Bilanz, disclosure and coordinated German business tax filings.
Annual accounts for start-ups and growing German corporations, including the related commercial-law and tax requirements.
Year-end accounting for GbRs, OHGs, KGs and other partnerships, including partner and capital accounts where relevant.
Annual financial statements or tax profit calculations, depending on the applicable German bookkeeping and accounting rules.
Taking Over Existing Bookkeeping
Annual accounts based on internally or externally maintained books
We do not have to maintain the ongoing bookkeeping in order to prepare the annual accounts. Year-end work can also be performed using books maintained internally or by another accounting provider.
In these cases, we first review data quality, account reconciliations, opening balances, open receivables and payables and material balance-sheet positions.
Missing or incorrect entries can be addressed separately before the actual year-end closing process begins.
International Businesses
German HGB annual accounts with international group reporting
German subsidiaries of international groups often require additional reporting under IFRS, U.S. GAAP or the accounting policies of the parent company in addition to their local HGB accounts.
German HGB annual accounts
Preparation of local statutory financial statements and the related German tax compliance data.
- HGB balance sheet
- Profit and loss statement
- Local closing entries
- E-Bilanz
- German tax returns
IFRS or U.S. GAAP reporting
Reconciliation of local HGB figures to the accounting and reporting framework required by the group.
- Account mapping
- GAAP adjustments
- Intercompany reconciliations
- Reporting packages
- Coordination with Group Finance
Frequently Asked Questions
Annual financial statements in Germany
Do you prepare annual financial statements under German HGB?
Do you also have to maintain our ongoing bookkeeping?
Do you also prepare the German E-Bilanz?
Do you also prepare corporate income tax and trade tax returns?
Do you handle disclosure or filing requirements?
Can you assist with overdue annual accounts?
Do you support subsidiaries of international groups?
Contact
Request annual accounts services for your business
During the initial consultation, we review the legal form, financial year, current bookkeeping status, account structure, German tax requirements, E-Bilanz, disclosure obligations and, where relevant, international group reporting requirements.