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Bookkeeping & receipts · 6.1

Balance Sheet and P&L: What Does My GmbH Need to Prepare?

Short answer

Every UG and GmbH maintains double-entry bookkeeping and prepares a balance sheet (Bilanz) and a profit and loss statement (Gewinn- und Verlustrechnung, GuV) at the end of each financial year. A simplified cash accounting method (Einnahmen-Überschuss-Rechnung, EÜR) is not permitted for corporations.

Key points

  • Balance sheet (Bilanz): a snapshot as of the reporting date. The left side shows what the company owns (assets), and the right side shows how it is financed (equity and liabilities).
  • Profit and loss statement (Gewinn- und Verlustrechnung, GuV): covers the entire year. Income minus expenses yields the net income or net loss for the year.
  • Revenue counts when the service or delivery has been provided, not only when the money arrives. Outstanding invoices are reported as receivables on the balance sheet.
  • Micro-corporations (Kleinstkapitalgesellschaften) may prepare an abbreviated balance sheet and dispense with the notes to the financial statements (Anhang).
  • The tax balance sheet (Steuerbilanz) is derived from the commercial balance sheet (Handelsbilanz) and transmitted electronically to the tax office as an E-Bilanz.

Figures & thresholds (as of November 2026)

  • Micro-corporation (Kleinstkapitalgesellschaft): at most two of three thresholds exceeded: €450,000 balance sheet total, €900,000 revenue, 10 employees

Legal basis

§ 238 HGB§ 242 HGB§ 264 HGB§ 267a HGB§ 5b EStG

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