The final step before officially ending your business comes with a few tax obligations - one of them is the final assessment balance sheet. It summarizes what your business was actually worth at the end and determines whether and how much tax applies to the closure.
A final assessment balance sheet is a balance sheet prepared at the point your business is closed down or sold. It shows the value of all business assets on the last day of your self-employed activity and forms the basis for calculating any resulting profit or loss from the closure.
The closure profit (or loss) is the difference between the fair market value of the business assets and their book value on the balance sheet. This profit is generally taxable, though it may qualify for tax relief under certain conditions.
Yes. The requirement to prepare a final assessment balance sheet applies regardless of how you've previously calculated your profits - even if you've been using a simple income-expense calculation (EÜR - Einnahmen-Überschussrechnung). This follows from § 16 EStG (German Income Tax Act), which generally applies to all self-employed people when they close their business: freelancers, sole proprietors, and trade businesses alike.
What differs is the format: if you've been using double-entry bookkeeping, you add a closing balance sheet to your annual financial statement. If you've been using an EÜR, you'll also need to prepare a final/closing balance sheet at the point of closure - meaning you record all business assets one time and value them at fair market value.
⚠️ Accountable is built for EÜR. If you become subject to mandatory balance sheet accounting (bilanzierungspflichtig), we recommend consulting a tax advisor, since Accountable cannot generate a (final assessment) balance sheet.
EÜR | Closing balance sheet | |
Principle | Income minus expenses | Assets vs. liabilities + equity |
Effort | Low | Significantly higher |
The final assessment balance sheet records all business assets at their fair market value - not at their tax book values. This includes, for example:
Business fixed assets (e.g., machinery, vehicles, office equipment)
Intangible assets (e.g., customer base, patents, licenses)
Current assets (e.g., inventory, receivables)
Business liabilities
Assets that you transfer into your personal assets when closing the business are valued at fair market value. This can have tax implications - so if you're closing your self-employed activity, it's worth taking a closer look at the details, whether you're a freelancer or sole proprietor.
The final assessment balance sheet is submitted to the tax office together with the tax return for the year the business was closed. There's no separate submission deadline - the general deadline for annual financial statements applies.
Important: even if you close your business partway through the year, you prepare the final assessment balance sheet as of the closure date and submit it with your annual tax return.
Imagine you're a photographer closing your business. You have the following business assets:
Asset | Book Value (EUR) | Market Value (EUR) | Hidden Reserve (EUR) |
Laptop | 400 | 600 | 200 |
Camera | 0 | 800 | 800 |
Customer base | 0 | 2,000 | 2,000 |
Open receivables | 1,200 | 1,200 | 0 |
Business liabilities | -500 | -500 | 0 |
Total | 1,100 | 4,100 | 3,000 |
The closure profit is calculated as follows:
Market value of business assets: €4,100
Minus book value of business assets: €1,100
= Closure profit: €3,000
This closure profit of €3,000 is taxable and must be reported in your income tax return. For larger amounts, it's worth checking available tax relief options (allowance, reduced tax rate).
Note on customer base (Kundenstamm): intangible assets like a built-up customer base can also have a market value - even if they never appeared as an asset in your EÜR. The tax office can require this to be valued.
When closing a business, you need to determine and pay tax on a closure profit (§ 18 para. 3 EStG).The tax office wants to know what your business was worth at the point of closure.
Equipment (e.g., laptop, camera) that transfers into your personal assets counts as a withdrawal and must be valued.
Any not-yet-invoiced services and open invoices must be fully recorded as of the closure date.
If you're closing due to age or permanent incapacity to work, allowances may apply (§ 16 para. 4 EStG).
Important: these benefits only apply if the business closure is truly complete and final. A mere pause in activity isn't enough.
The business closure must be reported to the tax office.
Not during ongoing operations - you use an EÜR. When closing the business, however, you need to determine the closure profit and prepare a final assessment balance sheet.
Record all income and expenses up to your last day of business activity completely in Accountable. For valuing business assets and the closure profit, we recommend consulting a tax advisor. Your data remains available as long as you don't delete your account.
Yes, that's possible - but for most Accountable users it only makes sense if it's needed for something like bank meetings or investors. Note that the balance sheet can't be created using Accountable.
Annual financial statements is the umbrella term - it includes, where applicable, the closing balance sheet and the profit and loss statement (P&L). For larger companies, notes and a management report are also included.
If you're unsure whether you or your GbR are subject to mandatory balance sheet accounting, feel free to reach out to our tax coaches or a tax advisor.
Author - Valesca Wilms
As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.
Who is Valesca ?Thank you for your feedback!
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