Since January 1, 2016, the auto-entrepreneur no longer exists, the micro-entrepreneur has replaced it. However, in reality, the term auto-entrepreneur has persisted. By becoming an auto-entrepreneur, one creates an individual business, subject to the micro-fiscal and micro-social regime.
If everyone knows that this system imposes simplified accounting on auto-entrepreneurs, many of you are still asking questions:
- What are your obligations?
- How to do your accounting when you are self-employed?
In this in-depth guide, we'll explain all that (and
more) to you!
What does the accounting of a self-employed
entrepreneur consist of?
Streamlined accounting
The micro-entrepreneur who benefits from the
micro-enterprise or micro-social social regime must keep simplified accounts,
implying in particular the absence of the obligation to present an annual
balance sheet.
We only require the non-modifiable and chronological
recording of receipts and purchases (Source), in books that we detail below.
The accounting of a self-employed entrepreneur is
therefore very simplified, if we compare it with commercial companies (see the
accounting of a SASU for example).
Mandatory billing
The invoice is a commercial and accounting document.
The invoice details the services or goods sold and establishes the terms and
conditions.
The invoice must include mandatory information,
article L441-9 of the Commercial Code provides for them. The main ones are:
- Name and address of the parties.
- Date of sale or service.
- Quantity and precise name of the products or services.
- Unit price excluding tax and any reductions granted.
- Payment due date and penalties for late payment.
- The seller or service provider is a member of a management center or an approved association must add "Member of an approved association, payment by check and credit card is accepted".
- The seller has a VAT exemption regime, he is required to add "VAT not applicable, art. 293 B of the General Tax Code".
- In the case of a subcontractor, the latter no longer declares VAT, he is obliged to add "reverse charge of VAT" and "amount excluding tax".
- Craftsmen or micro-entrepreneurs carrying out a craft activity for which professional insurance is compulsory, must add the mention of the insurance taken out for the activity.
The URSSAF has established a biller which includes all
the mandatory information, and you will find here an auto-entrepreneur bill
template to download.
The fine cannot exceed €75,000 for a natural person
and €375,000 for a legal person. In the event of repetition of the fault within
a period of 2 years from the 1st sanction, the maximum fine is increased to
€150,000 for a natural person and €750,000 for a legal person...
The sanction is an administrative fine and not a
criminal one, but the risks are high, and invoicing is therefore clearly part
of the obligations related to the accounting of a self-employed entrepreneur.
Opening a dedicated account: mandatory or not?
Opening a dedicated account is not mandatory if your
turnover does not exceed €10,000 for two years.
If you have opted for the micro-social regime, one
year after declaring the creation of your micro-enterprise, you must open a
dedicated account for all financial transactions related to your professional
activity.
You can also use a current account for more reduced
benefits, but this account must be separate from the personal account.
Keep supporting documents
Another accounting obligation of a self-employed
entrepreneur, you are required to keep all invoices or supporting documents
relating to your purchases and sales of goods or services (invoices, bank
statements, purchase orders, delivery slips, checks, cash register tapes, cash
slips, cash fog, etc.).
The shelf life of accounting documents for a
self-employed person is 10 years.
Declare your turnover
The declaration of turnover takes place only once a month or quarter.
The penalty is fifty euros per declaration not made.
Special case of the EIRL
The EIRL is a sole proprietorship with limited
liability. Two cases are to be distinguished.
The EIRL subject to IR:
- It is bound by the accounting obligations of the auto-entrepreneur, if its turnover is below the threshold of the micro-enterprise. €170,000 for sales activities, provision of accommodation and sale to be consumed on site and €70,000 for other services.
- If, on the contrary, it falls under the simplified tax regime, if its turnover is between 170,000 euros excluding tax and 789,000 e euros excluding tax for sales or between 70,000 euros excluding tax and 238,000 euros excluding tax for services. It can opt for super simplified accounting. Thus during the financial year, it only records disbursements and receipts, at the end of this accounting year, it is required to record receivables and debts.
- In the case of EIRLs with a liberal vocation, if it comes under the micro BNC, it must keep complete autonomous commitment accounting (like commercial companies). But it must keep a cash accounting in favor of the tax administration.
The EIRL subject to IS:
- When an EIRL opts for corporation tax, it is required to establish accrual accounting like commercial companies. Its accounting obligations are the same as those provided for the simplified actual regime or the normal actual regime. In terms of corporation tax, the micro regime is not intended to apply.
The mandatory books of the auto-entrepreneur in detail
The mandatory books when you are self-employed, there
are two: the recipe book and the purchase register. Other accounting
obligations also exist, we present them to you below.
The recipe book
It represents the only obligation to keep accounts for
auto-entrepreneurs. Indeed, you must keep up to date, as and when you collect,
a journal.
You must record there day by day and in chronological
order the origin and the amount of the various receipts collected. You only
record receipts here. The recipe book is therefore not cash accounting.
However, receipts corresponding to retail sales or
services provided to individuals may be entered at the end of each day for
their total amount provided that their unit amount does not exceed €76. See
BOFIP issue 100 for more information. When you deposit several checks in the
bank that correspond to sales, you have the option of entering only the total
of the deposit slip in the receipts book.
Each entry in the recipe book of a self-employed entrepreneur is also required to include mandatory information such as:
- The collection date
- The amount
- The origin of the recipes
- The nature of the recipes
- The mode of payment above 1000 € payment in cash is prohibited.
- References of supporting documents.
The purchase register
This register is not an obligation for all
auto-entrepreneurs, only for sales activities, housing supply and sale to be
consumed on site.
A self-employed person does not deduct his
self-employed expenses, the usefulness of the register of purchases is only to
calculate the total amount of the expenses. By subtraction, you get your
profit.
You must present the register of purchases in the
event of a tax audit, the tax administration having the possibility of
recalculating a result taking into account the purchases.
Like the recipe book, this register mentions all
purchases and expenses of a professional nature.
A particular formalism is also required:
It must summarize, year by year, and in chronological
order, the expenses of the company.
It must contain more or less the same information as
in the recipe book, namely:
- The date of payment
- References of supporting documents
- The name or denomination of the supplier
- Nature: material, service, product…
- The amount
- The method of payment
- How to keep your accounts in a micro-enterprise
- Auto-entrepreneurs have two choices: either do their accounting themselves or hire an accountant.
Do your own accounting
There are three options for doing the accounting for
your own business yourself: by hand, using Excel or software.
Either by hand
You have the option of preparing your self-employed accounts on paper, provided that the entries cannot be modified.
- You will have to use a support with numbered sheets, and fill it without blanks and without erasures.
- There are also ready-made recipe books and purchase registers on the market.
- The administration provides digital files that allow compliance with accounting obligations. The recipe book and the purchase register are presented in the form of a table.
Either with Excel
In theory, you cannot use an Excel file for the
accounting of a self-employed entrepreneur, because it is modifiable. However,
the chambers of commerce and industry offer an Excel file, which suggests that
this ultimately does not pose a problem.
Either with a management software for self-employed
Accounting software is not so useful, as the
accounting of a self-employed person is simplified.
A management software on the other hand could be,
because it meets several needs. Stocks, quotes and invoicing, cash flow are
likely to be a problem...to which appropriate software would provide a
solution.
In our opinion, software like Freebe (for
self-employed freelancers) or Tolteck for artisans is a good investment (time
saved, limited risk of error, etc.). To find out more, you can take a look at
our selection of self-employed invoicing software.
Get an accountant
Let's be clear: you have no obligation to hire a
self-employed accountant.
There are, however, some advantages, which encourage
some self-employed people to take on an accountant:
- Do not forget the deadlines for the declaration of turnover or that of VAT if it is due
- Benefit from advice in the event of exceeding the auto-entrepreneur ceiling, change of status, etc.
- Take advantage of management software (often included with online accountants, for example).
- An affordable price for the accounting of self-employed entrepreneurs (from 30€ per month)
In summary, self-employed accounting is within
everyone's reach. It's up to you, depending on your time constraints and your
knowledge, if you prefer to do it yourself, or delegate it.