What impact does the profit and loss statement have on my tax return?
May 28, 2023 | 50,00 EUR | answered by Jonas Kessler
Dear tax advisor,
My name is Luisa Ackermann and I am a self-employed entrepreneur. In recent years, I have always prepared my profit and loss statement independently, but I am unsure about the implications this may have on my tax return.
Currently, my business is in a growth phase and I am trying to manage my finances as efficiently as possible. I have heard that the profit and loss statement can directly impact my tax burden, but I am not sure exactly how this works.
My main concern is therefore to understand the specific effects that the numbers from my profit and loss statement may have on my tax return. Are there certain items that could have a positive or negative impact on my taxes? How can I optimize my profit and loss statement to minimize my tax burden?
I would greatly appreciate it if you could assist me in your online consultation and provide me with possible solutions. Thank you in advance for your support.
Sincerely,
Luisa Ackermann
Dear Mrs. Ackermann,
Thank you for your inquiry regarding the impact of your profit and loss statement on your tax return. As a self-employed entrepreneur, it is important to keep an eye on the financial situation of your company and consider the tax consequences.
The profit and loss statement, also known as P&L, is an important tool to analyze the earnings of your company. It shows the revenues and expenses incurred during a specific period and the profit or loss remaining at the end. These numbers do indeed have direct effects on your tax burden.
There are certain items in the profit and loss statement that can have positive or negative effects on your taxes. For example, operating expenses such as rent, salaries, advertising costs, etc. can reduce taxes as they are deducted from your profit, thereby reducing the taxable amount. On the other hand, extraordinary earnings, such as profits from the sale of assets, can lead to a higher tax burden.
To optimize your profit and loss statement and minimize your tax burden, it is important to accurately record all tax-relevant items. Proper bookkeeping is crucial in this regard. Additionally, you can also utilize certain tax planning strategies to reduce your tax burden, such as investing in the company or using tax depreciation opportunities.
During your growth phase, it is especially important to monitor the financial situation of your company and take timely measures to optimize your tax burden. I am available in my online consultation hours to analyze your individual situation more closely and provide you with concrete solutions.
I look forward to assisting you further and thank you for your trust.
Best regards,
Jonas Kessler
