Accounting according to tax law
In tax law, the accounting obligation is used solely to determine the tax burden. Accounting often has to be more complex in tax law than in commercial law. The accounting also helps to determine income and property taxes. For companies that are already obliged to keep accounts under the Commercial Code, this obligation also applies with regard to taxation.
Accounting obligation under tax law
According to Aviationopedia, the accounting obligation under tax law primarily concerns taxes on income and property. The taxpayer must keep and prepare all books properly not only according to § 238 HGB , but also according to § 140 AO . The taxes that he has to pay later result from this. In addition, the accounting also shows the sales tax amounts to be paid to the tax office.
The derivative accounting obligation and the original accounting obligation according to the provisions of § 141 AO are important for this .
Companies must prepare financial statements at regular intervals, which are preceded by an annual inventory. Farmers, foresters and traders are required to keep accounts under tax law if they
- A total annual turnover of more than 600,000 euros generate
- Even Cultivated land with an economic value of more than 25,000 euros have
- Profits from commercial operations per year in the amount of more than 60,000 euros can post
- Achieve an annual profit from agriculture and forestry of more than 60,000 euros .
The accounting obligation includes a minimum recording obligation for traders who meet all the requirements for accounting obligations. According to this, a goods receipt book § 143 AO and a goods issue book §144 AO must be kept. The accounting obligation begins with the financial year following the notification by the tax office. An example: If the tax office has determined the obligation to keep accounts on December 1st, 2016 and the financial year of the company concerned begins on January 1st, 2017, the company is obliged to keep accounts from New Year 2017.
The obligation ends at the end of the financial year following the financial year in which the tax authorities determine that there are no longer any requirements for the accounting obligation. Tax law defines the accounting obligation for companies on the basis of turnover and profit.
Accounting obligation under commercial law
According to the commercial law, merchants must provide an overview of their business situation by means of the systematic documentation of their business transactions (creation and processing). Therefore, all traders are obliged to keep accounts.
The obligation to keep accounts begins with the commencement of the commercial trade , in the case of non-professional and formal merchants with the entry in the commercial register . In the case of a general partnership, the obligation can also begin earlier ( Section 123 HGB ). It ends with the expiry of the merchant status or the discontinuation of the business with the current merchant . When Can a merchant and form a merchant and trading companies it ends with the cancellation in the commercial register.
The turnover limits 600,000 and 700,000 euros
Companies must prepare financial statements at regular intervals, which are preceded by an annual inventory. Farmers, foresters and traders are required to keep accounts under tax law if they
- Generate a total annual turnover of more than 600,000 euros
- Own self-cultivated areas with an economic value of more than 25,000 euros
- Profits from commercial operations in the amount of more than 60,000 euros per financial year
- Achieve an annual profit from agriculture and forestry of more than 60,000 euros.
Until December 31, 2015, there was still a turnover limit of only 500,000 euros . However, this was increased to 600,000 euros from the 2016 financial year.
A different limit, namely EUR 700,000 in sales , has been the new limit for cooperatives since then . You can then claim benefits like corporations . For this it is necessary that two of three requirements are met: a balance sheet total of 350,000 euros, a turnover of over 700,000 euros and a maximum of 10 employees.
Who is required to keep accounts?
All companies that are entered in the commercial register, i.e. companies with the legal form OHG, GmbH or AG, for example. In addition, all registered merchants with a turnover of more than 600,000 euros or a profit of 60,000 euros. Companies that do not have to be entered in the commercial register, but still generate the above-mentioned sales or profits, must also use double-entry accounting.
Freelancers and small businesses are regarded as under-selling people and have to do at least a simple accounting, which they close at the end with the income surplus calculation.
All full merchants are obliged to keep double-entry accounting under the Commercial Code and must draw up a balance sheet at the end of the year. In this respect, everyone is actually obliged to keep a type of accounting.
Small business owners must keep accounts
Small entrepreneurs are defined by the fact that they only generate a turnover of € 17,500 per year or, as an exception, € 50,000. Therefore, they do not reach the required turnover limit, which obliges them to keep accounts. You can therefore create simple accounting as well as an income-surplus-invoice (EÜR).