The annual financial statements are more than a legal obligation — they are a valuable management tool. Our checklist helps you prepare your 2025 annual financial statements in a structured and timely manner.
Annual Financial Statements as a Strategic Instrument
The annual financial statements reflect the financial foundation of your business. Beyond fulfilling legal obligations under §§ 242 ff. HGB, they provide valuable insights for business decision-making.
Timeline and Deadlines
Observe Statutory Deadlines
Corporations must prepare their annual financial statements within the first three months of the following year (§ 264 Abs. 1 HGB). Small corporations within the meaning of § 267 HGB have six months. Tax returns for 2025 are generally due by 31 May 2027 when tax advisory services are engaged.
Key Audit Points
Inventory and Physical Count
The physical inventory as at 31 December is mandatory for all entities required to prepare a balance sheet. Document the inventory process carefully. Inventory discrepancies must be explainable and traceable.
Assess Receivables
Review your receivables for recoverability. Doubtful receivables must be individually assessed and, where appropriate, partially or fully written off. The general provision captures the overall default risk of the receivables portfolio.
Establish Provisions
Provisions for uncertain liabilities, anticipated losses, and deferred maintenance must be correctly established. Particularly relevant are provisions for holiday entitlements, overtime, warranty obligations, and pending litigation.
Calculate Depreciation Correctly
Review the scheduled depreciation on tangible assets and intangible assets. Unscheduled write-downs are appropriate in cases of permanent impairment. Note the changes introduced by the Wachstumschancengesetz, particularly the declining balance depreciation under § 7 Abs. 2 EStG.
Account for Deferred Taxes
Medium-sized and large corporations must recognise deferred taxes under § 274 HGB. The calculation requires a comparison of the commercial and tax valuations of all balance sheet items.
Tax Optimisation Opportunities
Utilise the Investment Deduction Allowance
Are you planning investments for the next three years? The investment deduction allowance under § 7g EStG permits a profit-reducing reserve of up to 50 per cent of the anticipated acquisition costs.
Review Trade Tax Add-Backs
Review the trade tax add-backs under § 8 GewStG, particularly for rental and leasing expenses. The EUR 200,000 allowance provides smaller businesses with a degree of protection.
Disclosure Obligations
Corporations must disclose their annual financial statements in the Bundesanzeiger (Federal Gazette). The size class under § 267 HGB determines the scope of the disclosure obligation. Micro-corporations may limit themselves to filing the balance sheet.
Conclusion
Well-prepared annual financial statements form the basis for sound business decisions and efficient tax planning. Leverage our expertise at compleneo to optimally structure your 2025 annual financial statements and consistently exploit tax advantages.
