It is common for small and medium-sized companies to hire a tax consultant for all their accounting and tax needs. Recently, however, I have been receiving more and more inquiries from entrepreneurs who are struggling to find a tax firm that not only handles tax statements and annual financial reports, but also day-to-day bookkeeping. The reason for this is the same as in many other sectors: a shortage of specialists.

According to the German Federal Chamber of Tax Consultants (BStBK), the average age of tax consultants in 2023 is 54. Over 30% of all tax advisors in Germany are older than 61. At the same time, the number of tax advisors has only grown by an average of 1.9% in the last three years. Many tax advisors combine their tax advisory services with legal advice and auditing, which makes access to tax advice even more difficult for small and medium-sized companies.

For this reason, many tax advisors cooperate with accounting firms that take over the day-to-day bookkeeping for companies. This cooperation makes it much easier for the tax consultant to prepare tax statements and financial reports. The accounting office coordinates its work with the tax advisor and acts as a point of contact for entrepreneurs in all accounting matters.

In terms of costs, working with a freelance accountant is no more expensive than working with a tax consultant. In fact, this cooperation can often be more cost-efficient, as it makes optimal use of resources while ensuring the quality of accounting.