What legal regulations do I have to consider when preparing the balance sheet?
January 21, 2023 | 40,00 EUR | answered by Christiane Fuchs
Dear tax advisor,
My name is Verena Bauer and I am the managing director of a small GmbH. Our company will soon be preparing the annual financial statements, and I am unsure about the legal requirements that I need to consider. Our accounting practices have been rather informal so far, and I want to ensure that we correctly implement all legal requirements.
I am aware that accounting in Germany is subject to strict legal regulations, such as the Commercial Code (HGB) and the GoB (principles of proper accounting). However, I lack a detailed overview of the specific regulations that are relevant to our financial statements. I want to ensure that our financial statements are transparent and correct in order to prevent any potential legal consequences.
Could you please explain to me which legal requirements I need to consider when preparing the financial statements? Are there any specific regulations that apply to small GmbHs like ours? What steps do we need to take to create a proper balance sheet? Are there any particular aspects that we should pay attention to?
I would be very grateful for your support and advice on this matter. Thank you in advance.
Best regards,
Verena Bauer
Dear Mrs. Bauer,
Thank you for your inquiry regarding the legal regulations for preparing an annual financial statement for your GmbH. As a tax advisor specializing in accounting, I can help you and provide you with an overview of the relevant regulations.
When preparing an annual financial statement for your GmbH, you must first and foremost comply with the provisions of the Commercial Code (HGB). The HGB regulates principles of accounting, the structure and valuation of the balance sheet, and disclosure requirements. In addition, you must adhere to the principles of proper accounting (GoB) to ensure that your bookkeeping and accounting comply with generally accepted rules.
For small GmbHs, the same legal regulations generally apply as for larger companies. However, there are some special considerations to keep in mind when preparing the balance sheet. For example, small GmbHs may be exempt from the requirement to prepare notes under certain conditions if they publish the balance sheet and profit and loss statement electronically in the Federal Gazette.
To prepare a proper balance sheet, you must follow these steps:
1. Recording all relevant business transactions and entries in the fiscal year
2. Preparation of the balance sheet according to the requirements of the HGB and the GoB
3. Compliance with valuation rules for assets and liabilities (e.g. acquisition costs, depreciation)
4. Preparation of a profit and loss statement
5. Possible disclosure of the balance sheet in the Federal Gazette, if required
Special attention should be paid to the valuation of assets and liabilities, as they are crucial for representing the company's assets. Additionally, you should ensure that all information in the balance sheet is complete and accurate to avoid any legal consequences.
I hope this information helps you in preparing the balance sheet for your GmbH. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Christiane Fuchs
