noramum - just don't worry, sounds like you're doing it all fine. Of course you haven't left anything too late - the British just have an obsessively unrealistic idea of when children should be reading.
IME you don't teach children to read two languages in parallel - you establish reading in one language then transfer those skills to the second language. This is standard practice at my DCs' school, where they were alphabetised in year 1 (at the age of 6) and spent a year learning letters and reading (and at risk of sounding like a 'bad mother', I honestly have no idea if they used phonics and really don't care, since it worked), then at the beginning of year 2 they went on to reading in the second language, of course at a higher level because they're not starting from scratch.
Of course it's different if the two languages are in different scripts, but English and German are close enough to cause few problems. I remember once, when DD1 was at the start of year 2, we had bought a book in German as a present for a friend - one of the Conni books, but the proper hardback readers rather than the paperback Pixie picture ones - picked it up and just started reading the whole thing fluently aloud. That was simply using skills from a year of reading English. All she needed help with was the umlauts, the ess-zett, and that ie is consistently eee and ei is consistently aaiiii. Within a week she was almost as fluent in German as she was in English. By seventh grade they were doing Schiller in German lessons and Shakespeare in English lessons at Gymnasium.
Oh, and AFAIK German schools don't use reading schemes at all (ours certainly didn't) - there are just a number of early reader books, but not graded in the ORT way. And the Germans still somehow learn to read, almost all of them. Amazing, really.