Preparation of financial statements

German companies usually have to prepare once a year a financial statement, including balance sheet, income statement, notes and also year end corporate and VAT tax declaration. German accounting law HGB and tax requirements have to be considered. It is possible to make either a reconciliation from German GAAP (generally accepted accounting principles) to your local GAAP or vice versa. If you use a licensed accounting firm like Cosmotax GmbH, you usually have an extended deadline of 12 months after balance sheet day to file the accounts.