How do I create a balance sheet correctly?
June 22, 2023 | 50,00 EUR | answered by Xenia Zellerbach
Dear tax advisor,
My name is Eiko Fischer and I am a self-employed entrepreneur. In the past, I have always prepared my balance sheet myself, but I have now realized that I am unsure if I have correctly implemented all legal requirements and guidelines.
While I have diligently recorded my income and expenses, I am unsure if I have properly delineated and valued the different positions such as assets, liabilities, and equity. Additionally, I wonder if I may have overlooked important positions that need to be included in the balance sheet.
Due to my uncertainty, I fear that I may have made errors in my balance sheet that could negatively impact my tax obligations or financial situation. Therefore, I am reaching out to you for assistance in preparing my balance sheet and ensuring that it is accurate and in compliance with legal requirements.
Could you please explain to me how to properly prepare a balance sheet and what specific points I should pay attention to in order to avoid errors? Are there any tools or software that could help me create my balance sheet professionally and error-free? I would greatly appreciate your support and expertise on this matter.
Sincerely,
Eiko Fischer
Dear Mr. Fischer,
Thank you for your inquiry and your trust in my expertise as a tax advisor. It is important that as a self-employed business owner, you take care of the correct preparation of your balance sheet, as this is not only crucial for your tax obligations, but also for your financial situation.
To ensure that you prepare your balance sheet correctly, it is important to first adhere to the legal requirements and guidelines. The balance sheet is a comparison of assets, liabilities, and equity, and it is crucial that these positions are correctly delineated and valued. Assets and liabilities must always balance each other out, as they reflect the financing of the company.
When preparing your balance sheet, you should pay special attention to capturing and valuing all relevant positions accurately. This includes items such as receivables, payables, provisions, inventories, fixed assets, and cash. It is important that you include all assets and liabilities at the right time and at the correct value in the balance sheet.
To avoid errors, I recommend that you consult a professional tax advisor when preparing your balance sheet or at least seek advice from an expert. A tax advisor can help you comply with all legal requirements and ensure that your balance sheet is accurate and error-free. Additionally, there are various tools and software available that can assist you in preparing your balance sheet. These tools can help you capture and value the different positions in your balance sheet accurately.
I am available to support you in preparing your balance sheet and ensuring that it meets the legal requirements. Please do not hesitate to contact me if you have any further questions or need my assistance.
Best regards,
Xenia Zellerbach
