Accounting and self-employment: how does it work?

Table of contents

Reading time: 6 min

Introduction

Accounting for a self-employed business (or micro-enterprise) is often perceived as simple, but it's nonetheless essential. Understanding the accounting obligations will enable you to manage your business effectively and in compliance with the law. Here's a complete guide to everything you need to know about auto-entreprise accounting.

The unsuspected advantages of starting up without funds

Unlike conventional businesses, auto-entrepreneurs benefit from a simplified system. Here are the main obligations:

1. Keep a recipe book

The auto-entrepreneur must keep an up-to-date receipts book. This is a chronological record of all receipts related to the business.

  • It must include the following information: transaction date, customer identity, nature of transaction, amount collected.
  • Supporting documents (invoices, bank statements) must be kept in case of an audit.

2. Keep a purchase register (if applicable)

If you run a business, you must also keep a purchase register. This is a record of expenditure on goods and materials.

  • This register must show the date, amount, supplier and nature of the purchase.

3. Issue compliant invoices

Each service or sale must be invoiced in compliance with the compulsory terms, such as :

  • Name and address of auto-entrepreneur.
  • SIRET number.
  • Precise description of services or products sold.
  • Total amount (including VAT, if exempt).

VAT and auto-entrepreneurship: are you affected?


Auto-entrepreneurs benefit from a basic VAT exemption, which means that they do not charge VAT to their customers. However, there are limits to this exemption:

Sales of goods: €91,900.
Services: €36,800.

If these thresholds are exceeded, you must charge VAT and file monthly or quarterly returns.

How do you declare your income as an auto-entrepreneur?

 Declaring your income has never been easier. Here are the key steps:

1. Monthly or quarterly declaration

You must declare the sales received (not invoiced) on the auto-entrepreneurs portal. Depending on your choice, this declaration can be :

  • Monthly.
  • Quarterly.

2. Calculation of social security contributions

Social security contributions are calculated as a percentage of your sales:

  • Commercial activities: 12.3%.
  • Services: 21.2%.
  • Professions: 21.1%.

3. Withholding tax option

Depending on your income, you can opt to pay income tax at source. This allows you to pay tax at the same time as your social security contributions, simplifying your management.

Useful tools to simplify your accounting

Accounting management can be made easier with online tools and applications. Here are a few suggestions:

  • Invoicing: Use software such as Freebe or QuickBooks to issue compliant invoices and track cash receipts.
  • Expense management: Tools like Tiime or Expense Manager let you scan receipts and track your purchases.
  • Online declarations: The official auto-entrepreneur website (autoentrepreneur.urssaf.fr) is the platform to use for your declarations.

Conclusion:

Accounting for a self-employed business, though streamlined, requires rigor and solid organization. By complying with your obligations and using the right tools, you can simplify your day-to-day management and concentrate on developing your business. If you have any doubts or questions, don't hesitate to consult a chartered accountant. Good accounting is the key to a successful business.

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