Annual financial statements 2024: Tax tips and tricks

How year-end accounting measures can optimise the tax burden of companies and the self-employed

Frankfurt am Main

November 28, 2024

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Annual financial statements 2024: How accounting policy measures can optimize your tax burden

The end of the year is approaching, making December 31, 2024, a crucial deadline for many businesses and self-employed individuals. With targeted accounting measures, you can influence your tax burden and preserve your liquidity. We'll show you which steps you should consider now to be optimally prepared.

1. Advance costs and use them for tax purposes

Are you planning maintenance, advertising, or other immediately deductible business expenses? Bring them forward to 2024. This will reduce your tax burden immediately in the current year.

2. Invest and use depreciation

Take advantage of tax depreciation:

• Low-value assets (GWG) : You can write off acquisition costs up to €800 net immediately.

• Computer hardware and software : Notebooks, PCs or tablets purchased in 2024 benefit from full annual depreciation – even if purchased in December.

3. Create provisions in good time

Bonuses, royalties, or bonus payments for 2024 can only be taken into account as a reduction in profit if the commitment is made before December 31, 2024. Review your provision planning early!

4. Manage revenues strategically

Consider whether you can influence the timing of profit recognition. For example, by postponing deliveries or acceptances to another fiscal year.

5. Optimize inventory valuation

If market prices fall below acquisition cost, inventories must be written down. Document the market prices of your most important raw materials, consumables, and supplies as of the balance sheet date to ensure accurate valuation.

6. Critically examine claims

Assess the value of your receivables:

• Specific value adjustments : Check outstanding receivables carefully.

• General value adjustments : Take into account the current economic situation of your industry.

• Documentation : Carefully document payment reminders, dunning notices or indications of insolvency.

7. Use the flexibility in the income statement (EÜR)

Anyone who calculates their profit using the EÜR can directly influence the amount of income by bringing forward or postponing income and expenses.

Outlook: Uncertainty regarding depreciation rules

The planned Tax Development Act could bring changes to depreciation rules. However, the future course of action is unclear. Companies should keep an eye on possible adjustments and plan their plans accordingly.

Why accounting policy measures are worthwhile

Even if these measures in many cases only result in a shift in the tax burden, they offer a decisive advantage: you gain valuable liquidity and create financial flexibility for the coming year.

TaxPro recommendation for action:

Get professional support early on to maximize all optimization opportunities. A well-planned annual financial statement pays off!