Both for good management and for compliance with tax law, a company is subject to accounting rules or obligations, regardless of its size. Indeed, any company is obliged to keep detailed and regular accounts. This bookkeeping is regulated by different obligations that change according to the size of the company concerned. To clarify this subject, here are some accounting rules for a company depending on its size.
Accounting rules common to all companies
Every company must have :
– A bank account.
– A bookkeeping system that records all daily movements (journal and general ledger).
– An inventory of assets and liabilities that mentions the value of the company’s liabilities and assets (inventory book).
– A well prepared annual financial statement.
– A filing of the annual financial statement with a tax authority.
– An archive of documents that justify all the accounting activities of the company.
It should be noted that the advice of a chartered accountant is useful when it comes to finance or accounting. Therefore, if you want advice or more detailed information, you can go directly to an accounting firm or use the services of an online accountant. To find out more, click here.
Accounting rules for SMEs
For small businesses, accounting requirements can be simplified. In other words, their accounting rules have fewer requirements. However, for a company to benefit from the simplified accounting requirements, its turnover must be between EUR 170 000 and EUR 789 000.
Medium-sized companies can choose an accounting regime with light rules. However, they must meet certain conditions:
– For small establishments, the turnover must not exceed 8,000,000 euros.
– As for their balance sheet, it must not exceed 4,000,000 euros.
– As for the number of employees, small companies must have a maximum of 10 employees.
Accounting requirements for large companies
Companies with more than 300 employees are subject to special accounting rules. In order to comply with tax laws, large companies must be subject to accounting rules that require them to
– A VAT, CFE and CVAE declaration
– A normal real tax regime.
– A table and a financing plan.
Whether for SMEs or large companies, failure to comply with accounting obligations may result in legal proceedings or financial penalties. For this reason, it is necessary to consult an online accountant or an accounting firm.