Which documents are needed for the preparation of an annual financial statement?
February 6, 2022 | 40,00 EUR | answered by Fanni Ehrig
Dear Tax Consultant,
My name is Paula Zollmann and I have been running a small E-commerce business for three years. So far, I have been managing my own accounting, but now I am reaching my limits and would like to have a year-end financial statement prepared. Unfortunately, I lack the necessary expertise and I am unsure about the documents required for this.
My company has an annual turnover of about 100,000 euros and I have to consider both purchasing costs and personnel expenses. Additionally, I have made some investments that I would like to include in the year-end financial statement.
My concerns are that I do not know which documents are needed for the preparation of the year-end financial statement and whether I have gathered all the necessary information correctly. I also fear that I might overlook important aspects and errors could occur in the year-end financial statement.
Therefore, my question to you is: What documents are required for the preparation of a year-end financial statement and how can I ensure that all relevant information is taken into account? Are there specific deadlines that I need to meet and what steps are necessary to create a correct year-end financial statement?
I thank you in advance for your support and look forward to your response.
Sincerely,
Paula Zollmann
Dear Mrs. Zollmann,
Thank you for your message and your trust in my advice. It is understandable that as an entrepreneur in e-commerce, you may be facing challenges with increasing revenue and additional costs, and may need help with preparing your annual financial statements.
To prepare an annual financial statement, you will need a variety of documents to get a comprehensive picture of your company's financial situation. Some of the key documents include:
- Your balance sheet: This shows the assets, liabilities, and equity of your company at a specific date.
- The profit and loss statement: This lists all the income and expenses of your company during the fiscal year.
- Fixed asset accounting: This includes recording your investments, such as machinery or vehicles.
- Bank statements: These are important for tracking payment transactions.
- Invoices and receipts: These include incoming and outgoing invoices for purchases of goods, personnel costs, and other expenses.
- Tax documents: These include your VAT returns, trade tax assessments, and other tax-related documents.
To ensure that all relevant information is considered, I recommend systematically reviewing and organizing your documents. It may be helpful to create a checklist to ensure that you do not forget any important documents.
In terms of deadlines, annual financial statements are typically required to be prepared within six months after the end of the fiscal year. For your company with an annual revenue of 100,000 euros, you can opt for a simplified income-statement (EÜR) if your revenue is below 600,000 euros.
To prepare a correct annual financial statement, I recommend seeking assistance from a tax advisor who has the necessary expertise and can support you in the preparation process. A tax advisor can help you avoid errors and ensure a professional accounting.
I hope my response has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Fanni Ehrig
