Can I create the annual financial statement myself or do I need a tax advisor?
May 29, 2023 | 40,00 EUR | answered by Fanni Ehrig
Dear tax advisor,
My name is Verena Karpinski and I run a small sole proprietorship. In recent years, I have always prepared my annual financial statements myself, as it was a cost-effective solution for me. However, I am starting to wonder if it would be more sensible to hire a professional tax advisor for this task.
My annual financial statements consist of an income-statement and a balance sheet. As my business is slowly growing and tax regulations are constantly changing, I am unsure if I have taken everything into account correctly. I want to ensure that my annual financial statements are legally sound and do not pose any tax risks.
Therefore, I am wondering if I can still prepare the annual financial statements myself or if it would be advisable to involve a tax advisor. What are the benefits of hiring a professional tax advisor for this task? Could a tax advisor help me take advantage of potential tax benefits and optimize my overall tax situation?
Please provide me with an assessment of whether it would be wise to hire a tax advisor for my annual financial statements and what specific advantages this would bring. Thank you in advance for your help.
Sincerely,
Verena Karpinski
Dear Mrs. Karpinski,
Thank you for your inquiry regarding the preparation of your annual financial statements for your sole proprietorship. It is understandable that you are considering whether it would be beneficial to engage a professional tax advisor, especially given the increasing complexity of your business and tax regulations.
As a tax advisor, I would like to highlight some important aspects that speak in favor of engaging a tax advisor. First and foremost, it is important to emphasize that the preparation of annual financial statements is not just a formality, but an important basis for tax planning and the economic development of your business. A professional tax advisor can help you to legally structure your annual financial statements and minimize tax risks.
A major advantage of working with a tax advisor is their expertise and experience in the field of tax regulations. A tax advisor is familiar with current laws and regulations and can ensure that your annual financial statements meet all legal requirements. Furthermore, a tax advisor can help you to take advantage of any tax benefits and optimize your overall tax situation. Through targeted tax planning and structuring, a tax advisor can help you save taxes and improve the financial situation of your business.
Another important point is the time savings that you can gain by engaging a tax advisor. The preparation of annual financial statements requires time and expertise that you as a business owner may not have to the same extent. By working with a tax advisor, you can focus on your core business while the tax advisor takes care of tax matters.
Overall, engaging a professional tax advisor can bring many benefits to your business. From legal security to optimizing your tax situation and saving time, there are many good reasons to hire a tax advisor for the preparation of your annual financial statements.
I hope that this information has been helpful to you and I am available for any further questions. Thank you for your trust and I wish you continued success with your business.
Sincerely,
Fanni Ehrig
