The TPE, or Very Small Business, must, like any business, keep an accounting. However, the extent of its accounting obligations is less than for a large entity. Compta-Facile presents them in this article devoted to the accounting of VSEs answering the question: what are the accounting obligations of a VSE? These will depend in particular on the nature of the activity exercised, the chosen legal status (sole proprietorship or company) as well as the tax regime chosen by the structure.
Accounting obligations of a TPE subject to the micro regime
Conditions to benefit from the micro mode
A TPE can opt for a statute that exempts it from most accounting requirements: it is the micro regime (which includes the auto-entrepreneur). It comes in two plans, depending on the activity of the company:
- The micro-BNC regime for non-commercial TPE (Small Business accounting ). That does not earn more than 70,000 euros in revenue per year,
- The micro-BIC scheme for VSEs carrying on a commercial or craft activity whose revenues do not exceed 170,000 euros for sales activities, housing supplies and sales to be consumed locally or 70,000 euros for other services.
The option for this scheme presupposes that the entrepreneur carries on his activity in his own name, that is to say within a sole proprietorship (and not in a company, except in the case of a URL in which a sole partner is a natural person and that he also assumes the management of his company).
Accounting of a TPE under the regime of the microphone
The TPE which comes under the microwaves benefits from the most important accounting reductions. She is then exempt from:
- Set up an accounting:
- Keep obligatory books (however, she must keep a journal of receipts and a register of purchases under certain conditions);
- Prepare annual accounts and deposit them.
However, it must ensure compliance with the rules applicable to billing and opening a business account.
Accounting obligations of a TPE subject to the simplified scheme
There are two simplified schemes that differ depending on the nature of the activity: the Simplified Real Tax (RSI) system for traders or artisans and the controlled declaration regime for professionals.
Conditions for benefiting from one of the simplified schemes
The simplified real tax scheme
The Simplified Real Tax Plan is open to the TPE that meets the following conditions:
- She carries out a commercial or craft activity within a sole proprietorship or a company,
- It achieves a turnover between 170 000 € HT and 789 000 € HT (sales activity) or between 70 000 € HT and 238 000 € (services).
A TPE may also opt for the RSI regime even though it has not exceeded the limits provided for in the micro-BIC regime.
The regime of the controlled return
The controlled declaration regime applies to all liberal professionals who:
- Exercise their activity in their own name,
- Collect more than 70,000 euros of revenue per year (those who do not exceed this threshold can still opt for this scheme).
TPE accounting under one of the simplified schemes
Accounting of a TPE under the RSI
The TPE submitted to the RSI must maintain commercial accounting (known as accrual accounting) and thus proceed to:
- The chronological accounting of all the movements having an impact on its patrimony,
- Conducting an inventory at least once a year to verify the existence and value of the assets and liabilities of its assets.
In addition, she must keep two books: a book and a big book.
Two major relief schemes exist for very small companies whose turnover does not exceed 789,000 euros (sales) or 238,000 euros (services):
- Regardless of their legal status (sole proprietorship or company): option for super simplified accounting allowing to apply a cash accounting throughout the year and to register the receivables and debts only at closing the accounting year;
- Only for natural persons: simplified assessment of stocks and work in progress, quarterly centralization of accounting entries, deduction of fuel costs according to a flat rate.
Lastly, the TPE (Small Business accounting) having adopted a societal form submitted to the RSI must draw up annual accounts consisting of a balance sheet, a profit and loss account and an appendix, subject to benefiting from “simplified presentations” because of its size ( simplified balance sheet and income statement, abridged annex or simplified annex). It must file them at the registry of the commercial court and may request, under certain conditions, the non-publication of the latter.
Accounting of a VPS subject to the controlled declaration
The TPE which falls under the regime of the controlled declaration must:
- Establish a journal book detailing the income and expenses chronologically
- Complete a register of capital assets and depreciation,
- Maintain a cash accounting (it is, however, necessary to record depreciation and some write-downs at the end of the year),
It is exempted from drawing up annual accounts and depositing them.
Accounting obligations of a TPE subject to the normal regime
Conditions to benefit from the normal real diet
Benefit from the regime of the normal real TPE (Small Business accounting) which carries out a commercial or craft activity and which exceeds the thresholds envisaged for the application of the simplified scheme of taxation (or which does not exceed them but which voluntarily opted for this regime).
It should be noted here that no normal regime is provided for the liberal professions. The regime imposing on them the most binding accounting obligations is that of the controlled declaration.
Accounting a TPE under the regime of the normal real
The TPE which belongs to the RN does not benefit from any accounting relief. And must keep a complete commercial accounting. It can not opt for super-simplified accounting. And must record all transactions affecting. It’s assets according to the mechanism of the double part. It will, therefore, have to create different logs (called auxiliary logs) attached to a centralizing journal (general journal).
In the preparation of the annual accounts, a simplified presentation may be adopted if the TPE does not exceed 2 of the following 3 thresholds:
- Total balance sheet = 4 000 000 €,
- Turnover = € 8,000,000,
- And the number of employees = 50.
In addition, the deposit of the accounts remains obligatory but it can be the subject of a measure of confidentiality.
Also to read on the topic of general accounting requirements:
- Is accounting obligatory?
- Why hold an accounting?
- Is it mandatory to have an auditor?
- Our comparative table of corporate accounting obligations.