Financial Statements in Germany: More Than Just a Numbers Game

This isn’t just a paperwork ritual – it’s a crucial tool for assessing the financial health and future direction of your business.

Not every business is subject to the same rules. If you’re a small business owner, freelancer, or self-employed, a simple revenue surplus account (EÜR) may be all you need. But if you run a GmbH, AG, or KG, or belong to a larger corporate group, you’re required to prepare a full set of financials – typically including a balance sheet, profit and loss statement, and depending on size, a management report and appendix.

📌 These documents aren’t just formalities. They help determine tax liabilities, guide decisions on dividend distributions, and lay the groundwork for strategic planning. They also play a vital role in securing funding, gaining investor trust, and ensuring regulatory compliance.

🌍 For international companies, the requirements grow. You might need to align with IFRS or even US GAAP standards, especially if you’re part of a multinational group or listed on a foreign stock exchange.

📖 The obligation to prepare financial statements is based on the German Commercial Code (Handelsgesetzbuch – HGB), but other laws like the Publicity Act and Income Tax Act may also apply depending on your legal form and structure.

✅ At Greenfields, we help companies of all sizes navigate these requirements with confidence – locally and across borders. Let’s stay in touch!