The preparation of annual financial statements involves the creation of the annual financial statements of a company. This includes the preparation of the balance sheet, the income statement, the notes to the financial statements, and, if applicable, the management report. During the preparation of the annual financial statements, the financial transactions and business activities of a company are summarized and presented in a standardized format to provide an overview of the financial position, profitability, and assets of the company. The preparation of the annual financial statements is carried out in accordance with the applicable accounting standards and regulations in Germany.