Accountancy

Summary Double-entry bookkeeping records each transaction twice as debit and credit, ensuring both sides balance. It separates balance sheet accounts and profit and loss accounts to reflect assets, liabilities, income and expenses. It is mandatory for registered merchants and most corporations such as GmbH or UG, depending on size thresholds. Core outputs include journal, general …

Summary An annual financial statement brings together a company’s accounts to show its financial position at year-end. Depending on size and legal form, businesses face different obligations, from a simple surplus statement to full annual accounts with notes and management reports. Filing and disclosure rules ensure transparency, while deadlines and signatory requirements vary according to …

Summary A German LLC company such as a UG (haftungsbeschränkt) or GmbH must apply the method of double-entry bookkeeping 💬doppelte Buchführung rather than a simple profit-and-loss summary. The annual financial statements— including balance sheet and profit & loss account—must be completed within six months of the year end or face a fine. The process starts …

Summary The advance VAT return (Umsatzsteuervoranmeldung) requires businesses in Germany to regularly report and either pay or reclaim VAT. Filing must be done electronically via ELSTER, and the period (monthly or quarterly) depends on your previous year’s VAT liability. Small businesses may qualify for the Kleinunternehmerregelung and avoid these advance returns. Deadlines typically fall on …

Summary An invoice in Germany must include specific elements to be legally valid. You need your full name and address, the recipient’s name and address, a unique and consecutive invoice number, the invoice issue date, and a clear description of the goods or services provided. For each line item you must show quantity, unit price …

Summary Trade tax (Gewerbesteuer) is a municipal tax on commercial profits, calculated as profit × 3.5% base rate × local assessment rate (Hebesatz). Sole proprietors and partnerships receive a €24,500 allowance (associations €5,000), while corporations get none. Payments are made as advance instalments based on profit forecasts and reconciled in the annual return. The tax …