Do I have to publish my annual financial statements?
May 15, 2024 | 50,00 EUR | answered by Alice Heck
Dear tax advisor,
I, Gerald Schulze, run a small business and am currently facing the question of whether I have to publish my annual financial statements. I have always thought that only large companies are required to make their annual financial statements public. However, I have heard from some business partners that smaller companies like mine could also be obliged to do so.
At the moment, I am unsure whether I should publish my annual financial statements, as I am concerned that confidential information about my company could become publicly available. On the other hand, I do not want to encounter legal problems if I violate statutory regulations.
Could you please inform me whether as a small business I have to publish my annual financial statements? If so, what information should be included in them and how could I ensure that confidential data is protected? Are there any exceptions or ways to not make the annual financial statements public?
I would be very grateful if you could help me with this question, as I am worried about whether I am doing everything correctly and have no legal consequences to fear.
Thank you in advance for your support.
Sincerely,
Gerald Schulze
Dear Mr. Schulze,
Thank you for your inquiry regarding the publication requirements of your annual financial statements as a small company. It is understandable that you are concerned and want to ensure that you comply with all legal regulations.
In Germany, all companies are generally required to publish their annual financial statements, regardless of the size of the company. The publication requirement aims to provide transparency and inform creditors, customers, business partners, and other stakeholders about the financial situation of the company.
However, as a small company, you have the option to publish your financial statements in a condensed form. This means that you do not have to disclose all details of your annual financial statements. Typically, the key indicators such as revenue, profit, and total assets are sufficient to illustrate the financial situation of your company.
To protect confidential data, you can redact sensitive information such as salaries, credit terms, or other confidential data, or provide them in a general form only. Additionally, you can consult with your tax advisor to determine which information must be published and which do not.
There are also exceptions to the publication requirement, for example for micro-enterprises. They are not required to publish annual financial statements if they meet two of the following three criteria: less than 500,000 euros in revenue, less than 250,000 euros in total assets, or fewer than 10 employees.
In your case as a small company, you should consider whether you can take advantage of this exemption. If not, you should publish your financial statements in a condensed form to comply with legal regulations and protect confidential data.
I hope this information is helpful to you and answers your question. If you need further assistance, I am happy to help.
Sincerely,
Alice Heck, Tax Advisor
