Accounting and Reporting Services in Germany

German entities require the preparation of the on-going accounting pursuant to German GAAP (HGB). Working with our local experts can help you to overcome the challenges and head for success. Accounting in Germany is triggered by filing requirements of the statutory financial statements, tax filing requirements and corporate law requirements.  Depending on the kind of entity and/or business activity of the entity, the following must be prepared:

  • Annual statutory financial statements
  • Monthly preliminary VAT returns
  • Annual VAT returns
  • Annual CIT (corporate income tax) returns
  • Annual trade tax returns

In general, statutory financial statements must be prepared, signed, approved by the AGM and published within 12 months after year end. Special regulations and requirements have to be checked and considered on a regular basis.

Annual tax returns must be filed with the tax authorities by latest 12 months after financial year end. Monthly tax returns in general are to be filed within 10 days after month´s end.

Based upon the size of the company, number of employees and the annual results, or if it is required by the Articles of Association, an audit of the statutory accounts will be necessary. According to local laws, company management is responsible for having (statutory) accounts that give a true and fair financial and corporate view of the company to its shareholders.

On-going Accounting and Reporting Services

Considering the nature of the entity's operation, we estimate that the following bookkeeping services are required:

  • bookkeeping in the local applicable GAAP with the local adjustments when necessary
  • Preparation of monthly/quarterly financial reporting and data for the preliminary VAT returns (in either our own format or in yours)

On a monthly/quarterly basis

  • Prepare sales journal, purchase journal and other journal entries
  • Record all payments and funds received
  • Record all accounts receivable and accounts payable
  • Record all assets purchased and related depreciation
  • Record prepayment and accruals

Financial reports

Let us know your requirements and we will prepare a reporting package to suit. The completed report package will be submitted to you upon an agreed timeline, provided all the necessary information and documents are prepared and made available to us on a timely basis. The report shall include:

  • Balance sheet
  • Income statement
  • Cash flow statement
  • Explanatory notes
  • Trial balance
  • Bank reconciliation statement
  • General ledger listing
  • Balance sheet and selected expenses schedules
  • Petty cash report
  • Client’s monthly reporting package, if required (based on client’s accounting manual and/or client’s accounting framework)

The computation of the accounts are based on the relevant records/documents, information and explanation supplied to us. The control, accuracy and completeness of the accounts are therefore the responsibility of you and your company management.

Accounts payable service

As part of our accounting services, we can - only as an interim solution - also support clients who do not have a German bank account to manage accounts payables.

  • Invoice review and preparation for payment documentation
  • Setting up payment in the TMF Group banking system
  • Payment approval by management and senior staff
  • Payment documents administration and reconciliation with the accounts payable list
  • Client and supplier correspondence
  • Preparation of the day-to-day accounting in accordance with local GAAP
  • Accounting data collection & accuracy check
  • Management reporting – different GAAP/accounting framework
  • Translation from other GAAP
  • Reconciliation of accounts
  • Supporting our client’s tax advisor with the preparation of the statutory annual financial statements and tax returns, etc.
  • Supporting, coordination and cooperation with the other service providers mandated by our clients
  • Taking over further local filing obligations
  • Execution of payment of invoices upon approval by client
  • Liaising with auditors in the case of an audit
  • Assistance with intercompany reconciliations/consolidation
  • Statistics Institute filing/Central Bank filing if necessary
  • Preparation of invoices due to internal and local requirements

The above listed services will be provided by an external tax advisory company (pursuant to the restrictions set forth in German law). All communication and organisational issues will be taken over by TMF Germany.

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