SMEs: Tax advisors demand bureaucracy reduction

In a survey conducted by Datev, tax consultants are calling for tax cuts and a massive reduction in bureaucracy to ease the burden on small and medium-sized businesses. Their daily experiences in their firms are worrying.

This article is part of the special topic Bureaucratic madness in the craft industry

"Bureaucratic hurdles must be removed, tax and levy relief implemented, and investments made in infrastructure to support German small and medium-sized businesses." This is the conclusion of a recent survey conducted by the Datev industry barometer.

Even if the Tax consultants While the current situation of small and medium-sized enterprises is cautiously positive, forecasts for business development in the first half of 2025 are more cautious. Tax firms are also observing an increasing number of business closures, which are due not only to a lack of liquidity and profitability, but also to factors such as a shortage of skilled workers or a lack of succession planning. In the past twelve months, an average of around five clients of a tax consulting firm have closed their business. 

"The daily experiences are worrying"

"The daily experiences of tax advisors are worrying for Germany as a business location," says Datev CEO Prof. Dr. Robert Mayr. "We urgently need bureaucratic and tax relief for small and medium-sized businesses, which are the largest employers and the backbone of the German economy. Politicians must act quickly so that this backbone can continue to keep the German economy running."

According to their tax firms, the three biggest economic risks for companies are Personnel situation (keyword shortage of skilled workers) with 82 percent, Overregulation and bureaucracy (80 percent) and rising labor costs (68 percent). 

The Sales, order backlog and liquidity Positive assessments currently still prevail. However, the law firms are skeptical about the next six months, with a negative assessment prevailing. Only with the expected Sales development and new orders The answers to the assessment of the situation are roughly balanced, it is said.

Especially when it comes to the topics Costs and personnel The consultants are skeptical about the future. 71 percent assess the expected personnel situation of companies negatively, 59 percent view personnel costs, and 57 percent view general operating costs as problematic for the next six months. They are also rather cautious regarding companies' planned investments.

Source: Datev eG

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