Tax advisors for self-employed people and companies

If you are self-employed, you are not automatically also commercially active. It follows that freelancers and traders differ not only in their activities but also in terms of their tax treatment. And that is exactly what affects the tax return. Classification as a freelancer or as a trader has a direct influence on your obligations, your taxes and the choice of your legal form.

As a first step, your tax advisor will check whether you are classified as a freelancer or as a trader. A corresponding classification is not always clear — even though there are some classic freelancing activities.

These include therapists, doctors, lawyers and journalists. According to tax law (Section 18 (1) No. 1 sentence 2 of the Income Tax Act (EStG)), freelance activity is an “independent scientific, artistic, writing, teaching or educational activity.”

A correct classification as “freelancer” or “trader” is important due to the different tax procedures.

You can also find important information about taxes on the Pages of the Federal Chamber of Tax Consultants view.

Good to know: Is there a tax advisor specifically for a business?
‍Yes — many tax advisors specialize in specific target groups. If you run a business, it's worth looking for a law firm that has experience with commercial clients.

Because: The requirements differ significantly from those of freelance activities — for example due to accounting requirements, business tax and the often more complex structure of the company. An experienced tax advisor for businesses knows these differences and can provide you with targeted support.

To ensure that your tax advisor can provide you with optimal support, he must get a good overview of your current business situation and all processes. The rule here is: The better you prepare your documents, the better he can support you right from the start.

And even though there are many details about the question “What documents does my tax advisor need? “Are individual, there are some documents that your tax advisor will almost always request.

You should have these documents handy for your tax advisor if you work as a self-employed person:

1. Invoices & receipts: Income and expenditure, arranged chronologically and comprehensibly:
Electronically or as a scan (e.g. PDF, JPG)

2. Bank documents: Business account statements (monthly or yearly)

3. Payment service provider: Transaction overviews from Stripe, PayPal, Klarna, etc.

4. Contracts & agreements such as rental contracts, leasing contracts

5. Tax documents: Income tax, sales tax and business tax assessments (previous year and ongoing); advance sales tax returns (UStVA); tax registration questionnaire (when starting a new company); decisions on special topics (e.g. § 7g EStG, Corona aid)

6. Accounting data

7. Evidence of deductible costs (evidence) such as Training courses, technical literature, software licenses, etc.

‍8. Fixed assets & depreciation: Acquisition costs, documents, delivery notes, current system directory

9. Logbook (if motor vehicle is used professionally): Manually or digitally guided, seamless

10. Open positions: List of unpaid incoming and outgoing invoices

11. Investments & Financing: Evidence of planned or ongoing investments, leasing agreements, loan agreements, funding

12. Wage and social security documents (if employees): Payslips, social security reports, proof of contributions

13. Private use & mixed costs: Distribution records for telephone, Internet, motor vehicles, etc.
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Important: A tax advisor does not need all of these documents always at the same time — but:

· ongoing (e.g. for monthly accounting or VAT)
· yearly (e.g. for the EER or the annual financial statements),
· one-time (e.g. tax registration during incorporation, initial inventory),
· Depending on the occasion (e.g. for investments, tax audits, change of legal form).
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As a self-employed person, you are generally not required to hire a tax advisor. Whether you do your bookkeeping yourself or have it supervised externally depends on several factors — in particular on your income, time, professional security and your personal standards of accuracy and efficiency.
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Digital tools and tax software make a lot easier today. This can be a practical solution, especially in the initial phase or with very simple business models. But: Software also does not replace expert opinion or tax strategy.
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It often turns out that taking care of taxes themselves is no major problem for many shortly after founding the company. There are now numerous software solutions and apps that help to prepare and submit tax returns. And yet with them, you have no guarantee that everything will really run smoothly.

Classic risks include:
· Deadlines are overlooked or calculated incorrectly.
· Tax benefits — such as depreciation or provisions — remain unused.
· Incorrect information leads to back payments or delays.
· Communication with the tax office is becoming a burden.
· Important strategic issues (legal form, investments, withdrawals) remain unresolved.
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Many people find that what initially works quickly becomes a source of time and risk as the business grows. The good news: You can start professional consulting at any time — even after years of self-organization.
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An experienced tax advisor is more than just a service provider — he is a sparring partner, an understanding of figures and a driving force for your business decisions. It ensures that you meet your tax obligations efficiently, meet deadlines and make full use of room for manoeuvre.
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Whether you're just starting up, scaling your business model or questioning your cooperation with your current law firm: It's worth looking specifically for a self-employed tax advisor who suits you professionally and personally.
Because in the end, it is not just about correct bookkeeping, but about financial clarity, legal certainty and the good feeling of being optimally positioned for tax purposes.