Can I correct my annual financial statement afterwards?
June 8, 2024 | 40,00 EUR | answered by Alice Heck
Dear tax advisor,
My name is Peter Werner and I have been running a small business for several years. In the past, I have always prepared my annual financial statements myself, but I have now realized that there are some errors in them. Unfortunately, I failed to correct these errors in time and have already submitted my tax return.
I am very concerned that the errors in my annual financial statements could have negative effects on my tax burden and I am wondering if it is possible to correct the annual financial statements retrospectively. I am aware that this may involve additional effort and costs, but I want to ensure that my tax return is accurate and that I do not suffer any disadvantages due to the incorrect information in the annual financial statements.
Could you please explain to me if it is possible to correct the annual financial statements retrospectively and what steps I need to take for this? Are there deadlines that I need to consider and what consequences could arise from a retrospective correction?
Thank you in advance for your help and I look forward to your assistance in resolving this matter.
Sincerely,
Peter Werner
Dear Mr. Werner,
Thank you for your inquiry regarding the post-correcting of your annual financial statements. It is indeed possible to correct errors in the annual financial statements afterwards, however, there are certain requirements and steps that you need to consider.
First and foremost, it is important to know that post-correcting the annual financial statements can involve additional effort and costs. Therefore, you should definitely work with an experienced tax advisor to ensure that the corrections are carried out correctly and no further errors arise.
In terms of deadlines, there are certain restrictions here. Normally, you have until the end of the third year following the balance sheet date to correct your annual financial statements. In your case, this means that you have until December 31, 2023, to correct any errors for the 2020 annual financial statements.
It is important that you document the corrections properly and make them transparent to the tax authorities. This includes, among other things, preparing an amended tax return in which the corrections are detailed. Additionally, you should collect all relevant documents and receipts that support the corrections.
It is possible that the post-correcting of the annual financial statements may have an impact on your tax burden. Depending on the type of errors, savings may result, but additional tax payments may also be required. An experienced tax advisor can help you estimate the potential consequences and find the best solutions for your situation.
Overall, it is possible to correct a faulty annual financial statement afterwards, but you should seek professional assistance to avoid errors and ensure that your tax return is correct. Do not hesitate to contact me if you have any further questions or need assistance with correcting your annual financial statements.
Best regards,
Alice Heck
Tax Advisor
