How often do you talk to a tax consultant?

How often you interact with a tax advisor depends on a variety of factors, including the complexity of your business structure, the type of services you need and the legal requirements. However, there are some general guidelines that may apply to many businesses and individuals:

1. Regular communication

• Monthly to quarterly: If the company has ongoing tax obligations, such as advance VAT returns or wage tax returns, monthly or quarterly communication with the tax advisor is common. This also applies to companies that regularly require bookkeeping services or need to prepare annual financial statements.
• Bookkeeping issues and tax returns: If your business has ongoing sales and regularly carries out transactions, for example, a monthly exchange is useful to ensure that the VAT return and other tax obligations are completed correctly and promptly.

2. Annual communication

• Annual tax return: In many cases, the most intensive exchange takes place once a year to prepare and optimise the annual tax return. This includes the income tax return (for private individuals) or the corporation tax return and the balance sheet (for companies). This is particularly important if you want to make tax optimisations or depreciation.
• Preparation of the annual financial statements: Companies often have to exchange information with their tax advisor once a year to prepare and submit the annual financial statements (balance sheet, profit and loss statement) and the tax returns.

3. Event-driven communication

• Changes in the company: If there are changes in the company structure, such as a company formation, mergers, sales or investments, more intensive communication is required to discuss tax implications and optimisations. This may also affect the design of contracts and agreements.
• Tax issues or uncertainties: When new tax laws are passed or special questions arise, such as the depreciation of investments or tax subsidies, it is advisable to consult with your tax advisor in a timely manner. This also applies, for example, if you are affected by a tax audit or have questions about tax benefits or subsidies.

4. Ad hoc exchange as needed

• In the event of unexpected tax challenges or questions, it may also be useful to consult the tax advisor on an ad hoc basis. This could be the case, for example, if you are planning a major capital expenditure, corporate restructuring is pending or a tax audit by the tax office is suddenly carried out.

5. Communication in tax advice for individuals

• For private individuals, communication with the tax advisor may often be limited to an annual reconciliation for the income tax return. However, if there are any changes in personal tax status (e.g. marriage, children, purchase of real estate, self-employment), more intensive advice may also be useful here.

Conclusion:

The frequency of communication with a tax advisor varies depending on the needs and requirements of the company or private individual. Once a year for the tax return is a common practice, but for ongoing business processes, tax optimisation or changes in the company, monthly or quarterly communication makes sense. In any case, the exchange should be regular and as and when needed.