Sales of goods or services of the parent company in Germany: Tax consulting for sales companies
Focus on the core business
As the name suggests sales companies should focus on sales and marketing and other activities have to be carried out without much ado and without engaging much staff. Usually, sales staff do not want to be bothered with taxation and accounting work and the administration from a remote location is often difficult. At the same time, it is important to observe the law and any applicable provisions so that you don’t get into trouble for not doing so. Some challenges often faced by sales companies are:
Problems with the authorities due to missing applications and approvals,
Delayed returns and tax payments,
Problems with clients who no longer want to deal with the company as an incorrect legal form was selected or invoices were not cleared on time,
Problems with employees due to labor law provisions or late payments of salaries,
Problems with competitors, who copy unprotected intellectual property, serve a notice about the company’s competitive conduct or sue it.
Right after the foundation of the company, it is often not worthwhile to establish separate HR and finance departments, which normally employ experts for payroll accounting, financial accounting, the preparation of tax returns and annual financial statements and financial controller. Furthermore, tax experts or controllers would probably prove to be quite expensive if they make entries in the books, while accountants would be overburdened with highly skilled activities. These activities are best outsourced to an expert, who has already engaged all types of professionals or can quickly make them available.