German Chartered Accountants vs. pure German Certified Tax Adivisors
Chartered Accountants have extensive experience and go through years of training. Often, clients decide on hiring a Chartered Accountant instead of a certified tax advisor because of the well-grounded and extensive training of Chartered Accountants, which frequently results in a high quality of their work. In addition, an impeccable reputation always plays an important role when the output must be presented to third parties, who shall rely on these results.
Public Audit Companies are authorized to perform the statutory duties that certified tax advisors are not allowed to handle.
Here are a few examples of statutory duties:
- Mandatory audits of annual financial statements and managements reports
- Audits of consolidated financial statements and group management reports
- Issuing of audit opinions on performed audits.
This also includes audits of annual and consolidated financial statements according to recognized international accounting principles and other statutory audits, like special audits as per the German Stock Corporation Act (AktG).
In addition, chartered accountants can basically perform all duties which certified tax advisors may also handle. For example, consultation on tax planning, preparation of financial accounts, payroll accounting, annual financial statements and tax returns as well as the subsequent check of tax assessment notices, and representation of clients in dealings with the tax authorities and in fiscal court proceedings.
What distinguishes Chartered Accountants from Certified Auditors?
Certified Auditors are only allowed to perform audits on medium-sized companies with limited liability (Section 267 Para. 2 German Commercial Code (HGB)) and that does not even include medium-sized limited liability companies (GmbHs) that are required by other legislation like Insurance Supervision Law to have an audit performed (Section 316 Para. 1 German Commercial Code). Chartered accountants are generally free of these limitations and can also audit large corporations according to Section 267 Para. 3 German Commercial Code. Due to other specialisations, Benefitax currently does not offer any statutory audits.
Which other duties are performed by us as Chartered Accountants?
Thanks to our professional competence, we are also engaged to perform business audits such as due diligence audits and embezzlement audits. Furthermore, we may also act as official experts. For instance, we assist in company valuations. Benefitax is also authorized to provide legal legal advice on specific matters that are directly linked to our duties or in cases, that cannot be appropriately handled without legal advice. Consulting on business and economic matters is also a part of a Chartered Accountants profile.