How often do you exchange ideas with an accountant?

How often you interact with an accountant depends primarily on the type and size of the business and the accounting requirements. So the frequency of communication can vary greatly. However, there are some typical scenarios and recommendations that can help you get started:

1. Regular accounting (monthly or quarterly)

• Monthly exchange: For many companies, especially if they have ongoing income and expenses, a monthly exchange makes sense. This includes:
  • Monthly accounting: An accountant must regularly record the company’s transactions in order to correctly prepare the balance sheets, profit and loss statements and VAT returns.
  • Advance VAT return (UStVA): If the company is liable for VAT, a monthly or quarterly advance VAT return must be submitted. This requires close cooperation with the accountant to ensure that all income and expenses are correctly recorded.
  • Payroll: If the company has employees, monthly coordination with the accountant is required to create the payroll records and file the payroll tax returns.
• Quarterly Exchange: Some businesses, especially smaller or less complex ones, have only quarterly VAT returns or accounting requirements. Here, a quarterly exchange is sufficient to create all relevant reports and filings.

2. Annual exchange

• Financial statements and tax returns: Even if the current accounting is done monthly or quarterly, a more intensive exchange with the accountant is necessary once a year, in particular: The exchange often takes place at the beginning of the year to finalise the last accounting data from the previous year and to fulfil all tax requirements.
  • Annual accounts: a company must prepare an annual balance sheet, a profit and loss statement (P&L) and, if applicable, a cash flow statement. The accountant prepares these and ensures that all tax requirements are met.
  • Tax returns: the accountant helps to prepare the corporate income tax return, trade tax return and, if applicable, the annual VAT return.

3. Ad hoc exchanges for special events

• Investments, loans or large payments: If you are planning major investments or taking out a loan, you should regularly involve the accountant to ensure that these transactions are correctly recorded and that no tax implications are overlooked.
• Corporate changes: When changes are made to the corporate structure (e.g. a conversion from a limited liability company to a joint-stock company, mergers or acquisitions) or when introducing new accounting software, it is advisable to consult the accountant more often.
• Tax audit: If a tax audit is carried out, regular communication with the accountant is necessary to ensure that all relevant documents are submitted correctly.

4. Ad hoc advice on specific accounting questions

• Questions about accounting or tax uncertainties: If you have any uncertainties or specific questions during the financial year – e.g. about certain posting transactions, the depreciation of fixed assets or the posting of business transactions – you should contact your accountant if necessary. Losses, forecasts and planning may also require regular input from the accountant.

5. Communication with the accountant in the case of software and systems

• implementation and training: If you are introducing a new accounting software or optimising existing systems, the accountant can provide intensive support at the beginning. This may require several discussions or consultations to ensure that the software is set up correctly and that all processes run smoothly.

Conclusion:

• Monthly or quarterly interaction is often required for ongoing accounting, sales tax returns and payroll.
• Annual interaction is necessary for the preparation of the annual financial statements and tax returns.
• Ad hoc exchanges are advisable when specific questions arise or major business decisions are made.

Ultimately, the frequency depends on the size of the company, the complexity of the accounting and the specific tax requirements. In any case, the exchange should be regular enough to ensure smooth and correct accounting and to minimise tax risks.