Bookkeeping is the factually organised and complete recording of all business transactions of a business on the basis of receipts.

 

Every activity that changes the company’s assets and liabilities, leads to cash receipts or cash payments, represents a loss of value (expense) or an increase in value (income) is a business transaction. Each business transaction must be based on a document that provides information on the transaction, date and amount. Payments are recorded via the bank account linked to the accounting software. All other documents (such as incoming invoices and outgoing invoices) are imported into the accounting software in digital form.

 

The annual financial statements consist of a balance sheet, a profit and loss account and notes. The balance sheet is a summarised comparison of assets and liabilities in the form of accounts. The profit and loss statement is a summarised list of the profit and loss accounts. The profit and loss accounts are sub-accounts of the capital account. The balance sheet and income statement are therefore fundamentally interrelated.

 

Companies that are not listed on the stock exchange must only grant access to the annual report and audit reports to creditors who can demonstrate an interest worthy of protection. 

 

Corporations must submit a corporation tax return and, as a rule, a VAT return. In addition, the annual financial statements must be submitted to the tax office.