How-To Guide

How to prepare German financial statements (HGB): the complete workflow

Every German corporation has to turn its bookkeeping into a formal set of statutory accounts (Jahresabschluss) under the Commercial Code (HGB). This guide walks the full workflow end to end — trial balance, HGB mapping, the Bilanz and GuV, the notes, the management report, review and filing — so an English-speaking director or accountant knows exactly what has to happen and in what order.

What you are actually preparing

For a corporation (GmbH, UG, AG, SE, KGaA) or a GmbH & Co. KG, the Jahresabschluss under § 264 HGB consists of a balance sheet (Bilanz, § 266), an income statement (Gewinn- und Verlustrechnung / GuV, § 275) and notes (Anhang, §§ 284–288). Medium and large companies must also produce a management report (Lagebericht, § 289).

How much you have to disclose depends on your size class under §§ 267 / 267a HGB. A micro entity (Kleinstkapitalgesellschaft) may drop the Anhang entirely if it shows a handful of figures beneath the balance sheet (§ 264 Abs. 1 Satz 5); a small company files a reduced set; medium and large companies file the full accounts and must be audited. Knowing your size class before you start tells you exactly which documents you owe.

The workflow, step by step

1. Close the books

Finish the year: post cut-off entries, depreciation, accruals, deferrals and provisions, and reconcile the accounts. The output is a final trial balance (Summen- und Saldenliste) — the raw material for everything that follows.

2. Map to HGB positions

Each account balance is assigned to a statutory line in § 266 (balance sheet) or § 275 (income statement). This mapping is where a German chart of accounts such as SKR03 or SKR04 and the HGB taxonomy meet.

3. Build the Bilanz and GuV

The mapped balances aggregate into the prescribed balance-sheet and income-statement structure, with the prior-year column alongside. The two must tie out: total assets equal total equity and liabilities.

4. Draft the Anhang and Lagebericht

Write the notes required for your size class — accounting policies, the fixed-asset movement schedule, liabilities by maturity, and any disclosures your figures trigger. Medium and large companies add the Lagebericht.

5. Review, adopt and file

Check the whole package, have the shareholders adopt it, and file with the Unternehmensregister within twelve months of the balance-sheet date.

From trial balance to Bilanz and GuV

The hardest manual part is the mapping. A German trial balance can carry hundreds of SKR accounts, and each one has to land on the correct § 266 or § 275 position — trade receivables into B.II of the assets, tax provisions into a specific liability line, and so on. Get this wrong and the balance sheet either fails to balance or misstates a position.

Our software reads the uploaded trial balance and proposes the HGB mapping account by account, then lets you review and correct every assignment before it locks the figures. Because the mapping is HGB-aware — not a generic bookkeeping export — the Bilanz and GuV come out in the statutory structure, in euros, with the correct sign conventions and the prior-year comparison in place.

The notes, the report and the numbers behind them

Once the figures are locked, the Anhang is driven by what those figures contain. If there are fixed assets you owe a movement schedule (Anlagenspiegel, § 284 Abs. 3); if there are provisions or long-dated liabilities you owe the corresponding disclosures. The AI drafts each required note at the level a German auditor expects, pulling the actual amounts from your locked figures rather than inventing them, and flags any statutory gap for you to complete.

Only medium and large corporations must write a Lagebericht (§ 289); small and micro entities are exempt (§ 264 Abs. 1 Satz 4). If you do need one, it is drafted from the same numbers so the narrative and the accounts stay consistent.

Deadlines and filing

  • Preparation: medium and large companies must draw up the statements within 3 months of the balance-sheet date; small and micro within 6 months (§ 264 Abs. 1).
  • Adoption: GmbH shareholders adopt the accounts under § 42a GmbHG — small GmbHs within 11 months, others within 8 months of year-end.
  • Audit: medium and large corporations must be audited by a Wirtschaftsprüfer (§ 316); small and micro are exempt.
  • Filing: submit to the Unternehmensregister within 12 months of the balance-sheet date (§ 325); miss it and the Bundesamt für Justiz opens penalty proceedings from €2,500 upward (§ 335).
  • Language: the filed statements must be in German and in euros (§ 244). Our English interface is early-access; English exports are convenience translations, and the filed original is always the German version.

Frequently asked questions

What documents make up a German annual financial statement?

For a corporation: the balance sheet (Bilanz, § 266), the income statement (GuV, § 275) and the notes (Anhang, §§ 284–288). Medium and large companies add a management report (Lagebericht, § 289). Micro entities can omit the Anhang by showing a few figures beneath the balance sheet.

Do I need a tax advisor to prepare them?

No. There is no legal requirement to use a Steuerberater to prepare the statements — you can do it yourself or with software. Only medium and large corporations must have the finished accounts audited by a Wirtschaftsprüfer (§ 316); small and micro companies face no statutory audit.

How long do I have to prepare and file?

Preparation is 3 months for medium/large and 6 months for small/micro companies after year-end. Filing with the Unternehmensregister is due within 12 months of the balance-sheet date. Missing the filing triggers penalties from €2,500 (§ 335).

Can the statements be in English?

The legally binding, filed statements must be in German and in euros (§ 244). You can work in an English interface and produce English convenience translations for a foreign parent, but the document you file is always the German original.

Where do I actually file them?

Since 2022 you submit to the Unternehmensregister (German Company Register); the content then becomes publicly retrievable, historically via the Bundesanzeiger. Small companies file a reduced set and micro entities may deposit (hinterlegen) a shortened balance sheet instead of publishing it (§ 326 Abs. 2).