Can I have my annual financial statements prepared voluntarily, even if I am not required to do so?
February 16, 2023 | 45,00 EUR | answered by Louis König
Dear tax advisor,
My name is Eiko Zimmermann and I am the managing director of a small company. So far, I have always prepared my annual financial statements myself, as my company is not required to prepare annual financial statements. However, I am wondering if it would be beneficial to have my annual financial statements prepared voluntarily. I have heard that a professionally prepared annual financial statement not only helps to better understand the financial situation of my company, but can also leave a positive impression on banks and potential investors.
Currently, I have not sought professional assistance in preparing my annual financial statements. However, I am concerned that my self-prepared annual financial statement may not meet all legal requirements and may not be sufficiently informative. Additionally, I fear that I may overlook or misinterpret important key figures, which could have long-term negative effects on my company.
Therefore, my question to you as a tax advisor is: would it be advisable to have my annual financial statements prepared voluntarily, even though I am not obligated to do so? What are the benefits of a professionally prepared annual financial statement for my company and what possible solutions do you see in this regard?
I look forward to your expert advice and thank you in advance for your time and support.
Sincerely,
Eiko Zimmermann
Dear Mr. Zimmermann,
Thank you for your inquiry and your interest in professional advice regarding your annual financial statements. It is commendable that you are thinking about the quality and significance of your annual financial statements, even though your company is not required to prepare them.
A professionally prepared annual financial statement does indeed bring many benefits. Firstly, the financial situation of your company is presented more clearly and transparently. This allows you to better assess the profitability of your company, identify potential weaknesses, and plan for long-term success. A well-prepared annual financial statement can also help you make strategic decisions and make your company future-proof.
Furthermore, a professionally prepared annual financial statement can leave a positive impression on banks and potential investors. A meaningful annual financial statement can strengthen trust in your company and increase the chances of financing opportunities. Investors and banks often value transparent and reliable numbers, which a professional annual financial statement can provide.
In terms of legal requirements, it is also advisable to engage a tax advisor to prepare your annual financial statements. A tax advisor is familiar with legal regulations and can ensure that your annual financial statements comply with all legal requirements. This minimizes the risk of errors and discrepancies that could lead to legal consequences in the long run.
In summary, it is indeed worthwhile to voluntarily have your annual financial statements prepared, even if you are not obligated to do so. A professionally prepared annual financial statement offers clear advantages in terms of transparency and significance of your numbers, the trust of investors and banks, and compliance with legal requirements.
I am happy to answer any further questions you may have and to support you in the professional preparation of your annual financial statements.
Sincerely,
Louis König
