What are the risks of preparing a balance sheet without professional assistance?
November 28, 2023 | 50,00 EUR | answered by Xenia Zellerbach
Dear tax advisor,
my name is Daniel Krüger and I am the managing director of a small to medium-sized company. In the past, we have always prepared our balance sheet ourselves, as we thought it would be more cost-effective. However, we now have concerns about whether this was the right decision and whether it could lead to risks.
Our balance sheet consists of various items such as fixed assets, current assets, equity, and liabilities. We do not have professional accounting training and therefore sometimes unsure if we have correctly recorded everything. Furthermore, we are concerned that we may have overlooked tax benefits or made errors in determining profits.
Since the balance sheet is the basis for important business decisions and is also presented to external partners such as banks or investors, we want to ensure that it is correct and reliable. Therefore, we are wondering what risks could arise in preparing the balance sheet without professional help and how we can minimize them.
We are open to your recommendations and would like to know if it would be advisable to engage a professional tax advisor to prepare the balance sheet. What advantages could this bring us and how could it help us avoid potential risks?
Thank you in advance for your support and advice.
Sincerely,
Daniel Krüger
Dear Mr. Krüger,
Thank you for your inquiry and your trust in my expertise as a tax consultant. It is very understandable that you have concerns about the accuracy of your balance sheet and potential risks, especially if you have been working without professional help so far.
The balance sheet of a company is a very important part of financial reporting and serves not only as a basis for decision-making internally, but is also presented to external partners such as banks and investors. Therefore, it is of great importance that the balance sheet is correct and reliable in order to build trust and minimize potential financial risks.
If you do not have professional accounting training and are unsure if you have recorded everything correctly, there is indeed a risk of errors in the accounting. These errors can lead to incorrect profit determinations, overlook tax benefits, or even lead to legal consequences if the balance sheet does not comply with legal requirements.
A professional tax consultant can help you minimize these risks. With their expertise and experience, they can ensure that your balance sheet is prepared properly, all tax benefits are utilized, and potential errors are avoided. A tax consultant can also assist in optimizing your tax situation and help you take advantage of potential tax benefits.
Furthermore, a tax consultant can also help with the interpretation and analysis of the balance sheet to provide important information for business decisions. They can assist you in preparing annual financial statements and tax returns and ensure compliance with all legal requirements.
Overall, engaging a professional tax consultant can bring you many benefits and help you avoid potential risks in balance sheet preparation. I recommend consulting a tax consultant to ensure that your balance sheet is correct and reliable, and that you can benefit optimally from tax advantages.
I am available for further questions and individual consultation.
Sincerely,
Xenia Zellerbach
