In-depth guide · Operations
Year-end closing across all family structures
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español
Short answer
The year-end closing in a family office covers far more than bookkeeping: year-end holdings at every bank, valuations of illiquid investments, financial statements for each company, reports to foundation supervisory authorities, tax documents per person and a consolidated family balance sheet. A fixed timetable from January to June, with responsible people and the statutory deadlines in Switzerland, Germany and Austria, keeps deadlines and auditors from becoming a crunch.
Several closings at once
Family wealth with a holding company, a real estate company, a family foundation and private assets produces several sets of financial statements every year, with different rules, recipients and deadlines. At the same time, family members need documents for their tax returns, and the family council expects an overall view. Tackling these tasks one by one means collecting the same data several times and losing track of deadlines.
Statutory deadlines at a glance
| Country | Preparation | Approval | Disclosure |
|---|---|---|---|
| Switzerland | No fixed deadline, in practice before the general meeting | General meeting within six months of the financial year-end (Art. 699 CO) | No general disclosure for private companies |
| Germany | Small corporations within six months, others within three months (section 264 HGB) | GmbH: by the end of the eighth month, small GmbH eleven months (section 42a GmbHG) | No later than twelve months after the financial year-end (section 325 HGB) |
| Austria | Within five months (section 222 UGB) | Under company law | Filing with the commercial register no later than nine months after the balance sheet date (section 277 UGB) |
Timetable from January to June
- January: request year-end statements, tax certificates and income statements from all banks; reconcile holdings per account and portfolio.
- February: obtain valuations of illiquid investments; private market funds often report their year-end values only in spring – mark provisional values.
- February to March: reconcile accruals, loans between structures and services to family members.
- March to April: prepare financial statements per company, carry out the audit or review.
- April to June: general meetings, foundation board resolutions, reports to the foundation supervisory authority.
- In parallel: tax documents per person and the consolidated family balance sheet for the family council.
Foundations and taxes
Supervised foundations submit their annual report and accounts to their supervisory authority; the Swiss Federal Foundation Supervisory Authority generally requires this within six months of the financial year-end. The Austrian private foundation needs an audit by its foundation auditor every year. For the family members' tax returns, what matters is that income, withholding taxes and assets are complete per person and country – including income from structures taxed on a transparent basis.
Worked example (simplified)
A family office looks after a Swiss holding AG, a German real estate GmbH, a Swiss family foundation and four private individuals in two countries. In December it sets up a closing plan with 34 tasks, responsible people and deadlines. Because an important private equity fund reports its year-end value only in April, the holding company closes with a rolled-forward value and the effect is recorded in the following year – with a note in the financial statements. The holding company's general meeting takes place at the end of May; the GmbH approves its financial statements in June and discloses them by December.
Common problems
- Missing tax certificates from individual banks well into spring.
- Different valuations of the same participation in different financial statements.
- Loans between structures that do not reconcile with each other.
- Forgotten disclosure deadlines of German companies, resulting in administrative fine proceedings.
- A consolidated family view that does not match the individual financial statements.
The consolidated family view at year-end
Besides the statutory financial statements, the family needs an overall view as at 31 December: the net worth across all structures and private assets, at market values rather than book values, the development during the year split into market movements, inflows and outflows and revaluations, the return achieved and the costs. This view is not a statutory financial statement and follows its own rules: participations are looked through, loans within the family cancel out, and deferred taxes can be shown as a line of their own.
The bridge to the individual financial statements is important: for each structure it should be possible to explain why the book value in the financial statements differs from the market value in the family view – usually because of the prudence principle of accounting and undisclosed hidden reserves. This bridge creates trust with the family, advisers and auditors, because it shows that both figures come from the same data.
In FLIORE
FLIORE keeps holdings, valuations and documents per structure at the reporting date, records closing, general meeting and supervisory deadlines in the compliance calendar and produces the consolidated family balance sheet from the same data. Auditors and tax advisers receive time-limited, logged read access.
At a glance
| Switzerland | General meeting within six months (Art. 699 CO) |
|---|---|
| Germany | Disclosure no later than twelve months after the financial year-end (section 325 HGB) |
| Austria | Filing with the commercial register within nine months (section 277 UGB) |
| Bottleneck | Late values from private market funds and late tax certificates |
Terms on this page
- Family foundation
- A foundation whose purpose lies predominantly in the interest of one or more families.
Frequently asked questions
When should closing planning start?
In December of the current year, with tasks, responsible people and deadlines for all structures. Bank documents and valuations can then be requested in good time.
How are late fund valuations handled?
With the latest available value, rolled forward for capital calls and distributions, and a note in the financial statements. The difference is recorded in the following year.
Must a Swiss family foundation prepare financial statements?
Yes, it keeps accounts under the rules of the Code of Obligations. As a family foundation it needs no statutory auditor, and it is not supervised either.
What happens in Germany if disclosure is late?
The Federal Office of Justice initiates administrative fine proceedings. The twelve-month deadline should therefore be in the calendar.
Who prepares the consolidated family view?
The family office, from the same data as the individual financial statements, supplemented by private assets and market values. It is not a statutory financial statement but a basis for steering.
How long are the documents kept?
According to the commercial and tax retention periods of each country; in Switzerland ten years for accounting books and vouchers.
What is the difference between book value and market value?
The financial statements value according to accounting law, often at most at acquisition cost. The family view shows current market values. The difference – hidden reserves or hidden burdens – should be explained for each structure.
How are services between the family and companies handled?
They are charged at arm's-length terms and accrued in the financial statements. Free services or interest-free loans can have tax consequences and therefore belong in the closing reconciliation.
What belongs in the tax package per person?
Income and withholding taxes per country, assets at the reporting date, income from structures taxed on a transparent basis, interest on debt and deductible costs – complete and with vouchers, so that the tax adviser can work without queries.
Who coordinates the closing across all structures?
Usually the CFO or the head of the family office, with a joint plan for accounting, audit, tax advice and the foundation board. One person with overall responsibility prevents deadlines from getting lost between the parties.
Sources
- Swiss Code of Obligations (OR, SR 220) – Fedlex
- German Commercial Code (HGB), section 325 – disclosure
- German Limited Liability Companies Act (GmbHG), section 42a
- Austrian Commercial Code (UGB) – Legal Information System (RIS)
- Swiss Civil Code (ZGB, SR 210) – Fedlex
- Swiss Federal Foundation Supervisory Authority (ESA)
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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