Year-End Bookkeeping Checklist for German Small Businesses
The steps to close your books cleanly at year end, prepare records for your Steuerberater, and avoid the most common mistakes that delay your tax filing.
Year-end bookkeeping doesn’t have to be a scramble. If you’ve been maintaining clean records throughout the year, December and January should be a review and handoff process, not a catch-up exercise. This checklist covers the key steps to close your books properly and hand off to your Steuerberater with confidence.
November: Preparation
Review outstanding invoices. Which of your invoices are still unpaid? Follow up on any that are more than 30 days past due. Unpaid invoices at year end affect your income calculation. Under cash-basis accounting (EÜR), income is only recognized when received; under full double-entry bookkeeping (Bilanzierer), it’s recognized when earned.
Check for missing receipts. Go through your bank statement for the year and identify any expense transactions without a corresponding receipt. Now is the time to request duplicates from vendors, not after your tax advisor (Steuerberater) starts working on your return.
Review your asset register. Any equipment purchased during the year with a value above 800 EUR net needs to be added to your fixed asset register (Anlagevermögen) and depreciated. Items under 800 EUR are fully expensed in the year of purchase.
December: Final Processing
Process all December documents. Don’t let December invoices sit in your inbox. Get them uploaded, extracted, and categorized before January 1st.
Complete your bank reconciliation for December. The December bank reconciliation should confirm that every transaction in December is matched to a document. No unmatched items should carry into the new year.
Check your USt-Voranmeldung totals. Your accumulated advance VAT returns (Umsatzsteuer-Voranmeldungen) for the year should match your actual VAT collected and paid. Significant discrepancies will need explanation in your annual VAT return (Umsatzsteuererklärung).
Inventory count (if applicable). If your business holds physical inventory, a year-end count is required for businesses using full double-entry bookkeeping (Bilanzierer). Freelancers and service businesses usually don’t have inventory, but if you hold supplies or equipment for resale, document their value as of December 31st.
January: Handoff
Export your annual DATEV file. Generate the DATEV EXTF export covering the full year. Verify the totals against your bank statement balances.
Compile your source documents. Organize originals by month in a folder structure. Your Steuerberater needs both the EXTF file and the ability to access source documents for verification.
Prepare the Anlage EÜR. If you use cash-basis accounting (EÜR), your tax advisor (Steuerberater) will need the full year’s income and expense totals organized by category. The DATEV export covers this, but having a summary ready speeds the process.
Note any unusual items. Did you make a significant purchase that might have tax implications? Take a foreign currency loss? Use your car for business purposes? Write a brief note for your tax advisor (Steuerberater) on anything that deviates from a normal year.
Confirm the Verfahrensdokumentation is current. If you changed your accounting software, scanning process, or categorization system during the year, update your Verfahrensdokumentation to reflect current practice.
Common Year-End Mistakes
Waiting until February. The earlier your tax advisor (Steuerberater) receives clean records, the earlier they can file and the less rush-pricing you pay.
Missing the Dezember-USt. The December advance VAT return (Umsatzsteuer-Voranmeldung) is due January 10th (or February 10th with the deadline extension, Dauerfristverlängerung). Don’t miss this filing because you’re focused on year-end close.
Misclassifying the 13th month run. If you pay yourself a year-end bonus or make an unusual distribution, make sure it’s classified correctly.
Not confirming IBAN details. Your tax office (Finanzamt) refund (if applicable) goes to the account on file. Confirm it’s current before filing.
How KontoMatch Helps at Year End
If you’ve been using KontoMatch throughout the year, year-end is straightforward. Your invoices are already extracted and categorized, your bank statements are reconciled month by month, and the annual DATEV EXTF export is generated in a single step. You arrive at your tax advisor (Steuerberater) with organized records, a complete audit trail, and documents retained for up to 10 years, rather than a folder of loose files.