The status of auto-entrepreneur has many advantages, including simplified accounting, but it is nonetheless subject to certain accounting obligations . What does this simplified accounting mean, and what about the revenue book, invoicing and dedicated bank account? We'll try to answer these questions in this article.
Clear your mind to tackle the accounting side of your business with greater peace of mind.
By opting for the auto-entreprise status, the self-employed worker is placed under the micro-enterprise tax regime (micro BIC or micro BNB) and thus opts for streamlined accounting, which is the main advantage of this legal form.
Despite the need for rigorous accounting , entrepreneurs, unlike companies, are exempt from having to draw up an annual balance sheet.
In return, auto-entrepreneurs running a commercial business will be required to keep a receipts journal and a purchases register.
Auto-entrepreneurs are under no obligation to file income tax returns, but must nevertheless report their revenues on the 2042 C tax return.
In short, it's important to keep several factors up to date: your invoicing, your revenue book and to open a bank account dedicated to your business.
In the case of commercial activities, auto-entrepreneurs must keep an up-to-date book of receipts.
It must be managed on a daily basis and contain all operations carried out, in chronological order.
All receipts must include certain information, such as the amount and origin of the receipts, the method of payment and the references of supporting documents.
In the case of exclusive sales of goods, supplies or foodstuffs, or offers of accommodation services, you will also need to create a purchase register. This summarizes the details of all purchases made each year, specifying the type of payment and the references of supporting documents. Cash payments must be kept separate from other types of payment.
To ensure that these various documents are kept in good order, and if the entries are not to be modified, the self-employed person can buy accounting books from a retailer, download official models from the Internet, or use suitable accounting software.
Following each sale or service, the auto-entrepreneur must provide an invoice to customers, and keep a copy for ten years after the end of the fiscal year.
All invoices issued by the professional must contain compulsory information in accordance with common invoicing rules.
One of the other tax advantages of auto-entrepreneurs is their exemption from VAT. They benefit from a basic VAT exemption, exempting them from declaring and paying VAT on their sales or services.
For example, he issues invoices exclusive of tax (HT), all of which must clearly state "TVA non applicable, art. 293 B du CGI".
Auto-entrepreneurs must declare their sales on a monthly or quarterly basis, the choice being made at the time of registration. To declare their business, self-employed workers, registered with the INSEE national business register, use their Siren number and APE code. This Siren number must be indicated on all commercial documents and invoices.
This status is currently being turned upside down by the new government. Among the few measures implemented, one is particularly relevant to the accounting aspect. From 2018, all auto-entrepreneurs subject to VAT will be obliged to record all payments made using secure, certified software or a cash register system.
To carry out the various financial transactions associated with their business, auto-entrepreneurs are under no obligation toopen a business bank account at a credit institution or post office.
In fact, a simple personal bank account is conceivable, if it is specifically dedicated to one's professional activity.
It's important to make a clear distinction between personal and professional transactions. This obligation was introduced in January 2015, with a view to clarifying the accounting management of auto-entrepreneurs, and therefore reducing the risk of fraud.
This bank account will be used to collect all receipts, to deduct expenses and purchases related to the business, or to generate income. This account will also be the means of using payment instruments in the company's trade name, and will be useful for obtaining credit.
There are a few important obligations that must be met to ensure that your business runs as smoothly as possible.
If a large number of self-employed workers opt for the auto-entreprise status, it's also partly thanks to this lighter compatibility.
Even those with a phobia for paperwork won't be disappointed!
While this may seem a bit cumbersome at first, you'll soon adopt this accounting reflex.
Make sure you comply with these rules, which include invoicing, keeping an account book and opening a bank account dedicated to your business.
Written by our expert Maeva Girardot
October 26, 2017
