Preparatory accounting - what is it all about?
Most companies, but also freelancers, have to do accounting at regular intervals. However, the complex tax law in Germany makes many people despair. However, you can't really get around it. Of course, there is the possibility to use professionals as an interface to the tax office. But this can be very expensive. In order to keep the costs as low as possible, it makes sense to file invoices, reminders, entertainment receipts, etc. yourself. This allows the Prepare accounting.
As preliminary accounting In general, this is the compilation and structuring of all documents required for the tax return. Part of this is, for example, the compilation of individual document. These must be sorted correctly in order to Tasks of the tax adviser or the tax advisor afterwards. The actual accounting tasks can subsequently be the sooner when the preparatory financial accounting was done carefully.
What must be included in the preparatory accounting?
At the beginning it is important all Invoices and receipts if you don't already do this on an ongoing basis. To be safe here, individuals and companies alike should make sure to get proof of purchase for all business expenses. Thanks to the Receipt obligation this is mandatory in almost all cases anyway. There must be no Posting without document give. Sorting the documents is the next logical step. Chronologically ordered is the easiest way to do this. Documents that do not contain sufficient information should be supplemented (manually). Even if a simple A/R or A/P invoice provides all the information you need, it may be different for receipts. The final Step of the preparatory accounting is the transfer from the Documents to the tax adviser or the tax consultant. Depending on the accounting requirements, this must be done monthly or quarterly.
In the event of a tax audit, companies and freelancers should always have the receipts at hand in order to ensure completely transparent and modern recording. Particular attention should be paid here to the standard retention periods of at least six years for new receipts.
What does not belong in the preparatory accounting?
Monthly and annual financial statements, advance return for turnover tax or payroll accounting are not part of the preparatory accountingbut Accounting tasks in itself, which only comes afterwards. Also the postings themselves or the account assignments (assignment of postings to accounts, debit and credit or also posting of depreciation) are no longer part of the preparatory accounting. However, the supporting documents may be used within the framework of the preparatory accounting be preassigned. This facilitates business evaluations Following.
Do it yourself vs. outside help
Of course, you can use that legwork to do the bookkeeping oneselfBut if you absolutely don't want to make the effort, you can seek help from external service providers. This can be particularly useful if they can take on other tasks, such as writing invoices, making some bookings or taking care of the payroll. This saves the client a lot of time (and often energy) and allows them to concentrate on their actual core tasks.
Use digital solutions
As in so many areas, the preparatory accounting the Digitization with their technologies new possibilities. Manual, paper-based filing can be the cause of many errors and thus unnecessary effort. Documents can also be lost. However, if you have decided to go electronic and you already have all your invoices in digital form, you can do it all. quickly and simply transferred online. In addition, you need much less space for storage of documents. For the transfer is usually used a DATEV interface used. However, since other standards have been established in practice, this should be clarified in advance with the tax advisor. However, the process itself is not changed by the digital version.
Bureaucracy in Germany means that individuals and companies are only too happy to outsource the extensive tasks of bookkeeping. However, this can quickly become expensive, because good tax consultants are by no means cheap. The preparatory financial accounting can, however, save money for all those who take on this measure themselves and handle it internally. Provided that one makes a little more effort here and works carefully, the actual Accounting fast done.