Bookkeeping is not always easy for small businesses. There is also a lot to consider with regard to the balance sheet and income statement.
In order to shed some light on the subject for those new to accounting, here is an explanation of the terms:
the balance sheet is a part of the annual financial statement of a company. If the profit limit (see below) is exceeded (or you are subject to the accounting obligation as a merchant and e.K.o HG, KG, AG, GmbH, as well as UG), a balance sheet must be prepared. The balance sheet is more detailed than the EÜR and has two sides: the assets (assets and use) and the liabilities (capital and origin). If the balance sheet has been prepared correctly, assets and liabilities have the same value.
Surplus income statement (EÜR) is a simplified form of profit determination. In this process, entrepreneurs compare the business income with the business expenses and determine the surplus generated in the business. The EÜR can be attached to the income tax return.
Balance sheet & EÜR for selection
The question that often arises at this point is whether a company balance sheet is necessary or whether a simple EÜR is sufficient for the tax office. In general, small businesses, freelancers and farmers and foresters are often allowed to determine their profit by EÜR. A balance sheet in turn must be prepared if the profit limit is exceeded.
The following values apply:
ERP software helps
- Freelancer are generally allowed to prepare an EÜR.
- Small business owners: Income < 17,500 euros per year does not have to prepare an EÜR.
- Commercial enterprises & associations: Revenue < 50,000 euros per year, an EÜR is sufficient. Turnover must not exceed 500,000 euros per year.
- Agriculture and forestry: Revenue < 50,000 euros annual profit. In addition, the usable floor space value must not exceed 25,000 euros.
Recommended for these and other accounting tasks is ? of course ? a ERP software. Here, even accounting beginners can easily and quickly create an EÜR. This is based on bookings made on the basis of accounting rules applied by the software. The creation of a balance sheet can also be supported by many ERP solutions. Especially standard solutions ? such as SAP Business One ? have the appropriate range of functions to create the necessary evaluations. They manage to determine valid figures even with an increasing number of transactions. This is the basis for well-founded decisions.
Posting periods in SAP Business One
E-bill master data and settings in SAP Business One
Moving average price in SAP Business One
SAP Business One - Open items
GOBD and GOBD myths
