Business Accounting for Micro-Entrepreneurs
Tuesday 04 October 2016
Business owners in France who adopt micro-entrepreneur tax status benefit from minimal statutory accounting obligations.
One of the benefits of micro-entrepreneur business tax status is an exemption from the panoply of accounting regulations and processes that govern the operation of those who use the standard régime réel basis of taxation.
It includes exemption from the need to prepare a set of annual accounts.
Of course, nothing prevents a micro-entrepreneur using a more elaborate system of accounting, but their only legal accounting obligations are as follows.
Micro-entrepreneurs are required to maintain a daybook of cash receipts (livre des recettes), recording the date and amount a payment was received, the method of payment and any relevant invoice number.
Those who are engaged in buying and selling products, or who run a cafe or restaurant or chambre d'hôte are also required to maintain a daybook of expenditure (livre des achats), in a similar form to the cashbook.
There are standard paper and on-line journals available that can be used, but it would be perfectly in order to simply create and maintain your own on-line spreadsheet.
A micro-entrepreneur is obliged to invoice for sales or services, on which they should state their business registration number - their 'Siren'.
As they are exempt from TVA, a micro business is legally obliged to make a declaration on all invoices 'TVA non applicable, art. 293 B du CGI.'
A separate bank account must be maintained for the business, through which all receipts and payments are processed.
Most banks in France offer a 'professional' bank account for business owners, for which they impose a not inconsiderable management charge.
In law, there is no need for the bank account to be anything other than a personal account in your own name, which is often available free of charge, although there may be a charge for a credit/debit card or overdraft facility.