Field help: (2018) Profits are determined according to

Select here how the profit calculation for your business is carried out:

• Net income method (sect. 4 para. 3 of the Income Tax Act (EStG)): In the case of the net income method (EÜR), the profit is calculated by comparing income and expenditure. This type of profit calculation is suitable for smaller businesses.

• Balance sheet (sect. 4 para. 1 or 5 of the Income Tax Act (EStG)): Accounting is considerably more complex, since an inventory must be carried out as well as a balance sheet (comparison of assets and liabilities) and a profit and loss account must be drawn up at the end of the year.