Accountancy

The general purpose of bookkeeping is to ensure complete and consistent records of all business transactions that occur within a given financial year. There are two types of bookkeeping methods: the single-entry method (einfache Buchführung) and the double-entry method (doppelte Buchführung). Read on to find out what single-entry bookkeeping is, who can legally use it …

Want accounting and taxation in Germany explained to you in plain English? You’ve come to the right place! From tax optimisation strategies for your company to a primer in EOFY accounting, get your German business education here. All the articles have been categorised (see the contents below) and linked for ease of navigation. We hope …

Entrepreneurs that are not obligated to prepare a balance sheet at the end of year must instead prepare an Einnahmenüberschussrechnung, or EÜR for short. But what exactly does the EÜR entail? Read on to find out what the EÜR encompasses, who may choose to prepare one and what should be kept in mind when doing …

Self-employed persons (Selbstständige) in Germany can benefit from many tax reductions (Steuerminderungen), provided that the amounts are stated at the appropriate place in the tax declaration (Steuererklärung). In order to get through the financial year with the best possible tax advantages, you not only have to keep all the receipts (Belege) of your purchases, but …

Want to know what your tax burden in Germany is like? The exact amount depends on many factors. In this article, you’ll learn about the most common tax types that a self-employed person must expect. We explain which tax types are relevant for whom and how the tax burden is composed. Learn more about how …

What exactly is wage tax (Lohnsteuer), how is it calculated and how can the net wage be optimised? In this article, you’ll find basic information about wage taxes in Germany, how to report them, wage tax classes, wage tax compensation and net wage optimisation. Lohnsteuer: Definition Wage tax is an advance on income tax (Einkommensteuer) …