Annual financial statements: preparation and advisory

The German commercial code obliges all business people to draw up an annual financial statement. This serves as an important source of information for customers and suppliers, potential investors, rating agencies and shareholders. The tax authority also uses the annual financial statement to calculate the amount of tax to be paid. Furthermore, an appropriately organised annual financial statement represents a source of information for the entrepreneur and can be used as a decision making tool for the future.
 
As a reflection of the success of your company, the annual financial statement has to be well organised in order to present the company performance and provide transparency. In this way we ensure a positive public image for your company.
 
We are also the right partner to help you in an international context. On request we will prepare your annual financial statement according to German commercial law and also according to international accounting standards. Do you require an annual financial statement for your international subsidiary or permanent establishment according to the law of the respective country? In that case we can refer you to our colleagues in your local area who are familiar with the local accounting requirements of the respective country.

 

The required scope of the annual financial statement depends on the legal form and size of the company. In all cases it consists of the balance sheet and the profit and loss account. Corporations and certain partnerships also have to provide supplementary notes to the annual financial statement and where appropriate also a management report. Furthermore, publicly traded corporations have to draw up a cash flow and equity analysis statement.
   

Do you wish to disclose an annual net profit which is as high as possible or is as low as possible? The planning of balance sheet policy allows the preparer of the financial statements certain discretionary powers and scope for flexibility. This gives us the possibility of fine-tuning your annual financial statement to take your special situation into account under consideration of all national and international requirements.
   

The version with the smallest scope, namely without the instruction to assess the presented ledgers, accounts and inventory evidence will already raise the quality standard of your annual financial statement. This is because our specialists will notify you of any significant irregularities contained within the presented documents. At the same time we will offer you correction possibilities and on request assist you with the revision of existing internal company processes.
 

The other two variations of preparation with a deeper assessment include further activities which increase the informative value and reliability of the prepared annual financial statement for the addressees, in particular also for shareholders and banks.
 

We determine tax deviations between the tax balance sheet and the commercial balance sheet which are either stipulated by law or are possible in the form of an independent balance sheet or through preparation of a reconciliation account. Our specialists will outline planning possibilities and provide you with reliable and competent support with the implementation.