Annual Financial Statement  Manufacturers, Traders, Suppliers

According to §242 of the German Commercial Code, merchants and companies must prepare annual financial statements for the end of a financial year that present the actual financial situation of a company. Annual financial statements serve to account to third parties, such as customers, suppliers and shareholders, as well as the interested public. They provide information on the successes and failures of a company's business activities and, in short, provide an overview of its financial strength. Generally, the accounting department (financial accounting, payroll accounting, etc.) or the accounting department takes over the task of keeping everything clear throughout the year. Tax consultants also make a kind of annual financial statement in the form of a tax return, only for private individuals.