What deadlines apply for the preparation of a balance sheet?
January 4, 2022 | 40,00 EUR | answered by Xenia Zellerbach
Dear tax advisor,
I am facing the challenge of preparing the balance sheet for the past financial year as the managing director of a medium-sized company. I am unsure about the deadlines that need to be met and want to ensure that I do not risk any legal consequences or sanctions.
The current status is as follows: the financial year ended on December 31st and we have not yet prepared the balance sheet. I am aware that preparing a balance sheet is a complex and time-consuming task, so I would like to inform myself about the legal deadlines early on to ensure that we do not make any mistakes.
My concerns are that we may miss the deadlines for preparing and submitting the balance sheet, potentially leading to legal consequences. Additionally, I am unsure if there are specific requirements that we need to consider when preparing the balance sheet to ensure proper accounting.
Therefore, my question to you as an experienced tax advisor is: what specific deadlines apply for preparing a balance sheet after the end of the financial year, and what steps should we take now to prepare the balance sheet in a timely and correct manner? Are there possible sanctions if we are unable to meet the deadlines, and what measures can we take to avoid this?
Thank you in advance for your support and advice.
Sincerely,
Friedhelm Witzelmann
Dear Mr. Witzelmann,
Thank you for your inquiry regarding the preparation of the balance sheet for your medium-sized company at the end of the fiscal year. It is understandable that you are concerned about the legal deadlines and potential consequences and want to ensure that the balance sheet is prepared on time and correctly.
In general, the balance sheet of a company must be prepared and determined within three months after the end of the fiscal year. This means that your balance sheet for the past fiscal year should be prepared and determined by no later than March 31. This deadline is legally required and should be strictly adhered to in order to prevent possible legal consequences.
To prepare the balance sheet on time, I recommend that you start the preparations promptly. This includes compiling all relevant documents, such as the annual financial statements, business evaluations, bank statements, and other accounting documents. In addition, all business transactions of the past fiscal year should be carefully reviewed and recorded.
It is important that the accounting is done in accordance with the legal regulations and the principles of proper accounting (GoB). In particular, the balance sheet and valuation regulations of the Commercial Code (HGB) must be observed. Correct accounting ensures transparency and accuracy of the company's financial position and earnings.
Failure to comply with the deadline for preparing and determining the balance sheet can result in sanctions. Companies that do not submit their balance sheet on time may be fined. Furthermore, this could potentially compromise the trust of investors, business partners, and authorities.
To prevent possible sanctions, I recommend that you start the accounting process promptly and take appropriate measures to meet the deadline. If you need assistance with preparing the balance sheet or have any further questions, I am at your disposal.
I hope that this information was helpful to you and I am available to assist with any further questions.
Best regards,
Xenia Zellerbach
