Accountancy

Summary Double-entry bookkeeping records each transaction twice as debit and credit, ensuring both sides balance. It separates balance sheet accounts and profit and loss accounts to reflect assets, liabilities, income and expenses. It is mandatory for registered merchants and most corporations such as GmbH or UG, depending on size thresholds. Core outputs include journal, general …

Contents What is an annual financial statement? Why prepare one? Who has to publish one? How to file it? Why does the publishing obligation apply? How are companies classified by size? What are the components? What are the publishing deadlines? Who signs the Jahresabschluss? What are the costs? Want to know?   [BEGIN: Insert an …

Summary A German LLC company such as a UG (haftungsbeschränkt) must apply the method of double-entry bookkeeping 💬doppelte Buchführung rather than a simple profit-and-loss summary. The annual financial statements— including balance sheet and profit & loss account—must be completed within six months of the year end or face a fine. The process starts with properly …

Summary The advance VAT return (Umsatzsteuervoranmeldung) requires businesses in Germany to regularly report and either pay or reclaim VAT. Filing must be done electronically via ELSTER, and the period (monthly or quarterly) depends on your previous year’s VAT liability. Small businesses may qualify for the Kleinunternehmerregelung and avoid these advance returns. Deadlines typically fall on …

Summary An invoice in Germany must include specific elements to be legally valid. You need your full name and address, the recipient’s name and address, a unique and consecutive invoice number, the invoice issue date, and a clear description of the goods or services provided. For each line item you must show quantity, unit price …

Summary Trade tax (Gewerbesteuer) is a municipal tax on commercial profits, calculated as profit × 3.5% base rate × local assessment rate (Hebesatz). Sole proprietors and partnerships receive a €24,500 allowance (associations €5,000), while corporations get none. Payments are made as advance instalments based on profit forecasts and reconciled in the annual return. The tax …