Field help: 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)): Profit is calculated by comparing income and expenses. This method is particularly suitable for smaller companies.
• Balance sheet (sect. 4 para. 1 or 5 of the Income Tax Act (EStG)): With this more complex method, an inventory must be carried out and a Balance Sheet and Profit and Loss Calculation prepared at the end of the year.

For each self-employed occupation, a balance sheet or a net income method (Einnahmeüberschussrechnung = EÜR) must be submitted electronically.