Invoicing software for craftsmen

When setting up their business, every craftsman must register with the trade register. Their accounting obligations then depend on their legal status, as well as their tax regime. Invoicing software for craftsmen lets them spend as little time as possible on this administrative side, stay compliant in case of a tax audit, and manage incoming payments and unpaid invoices. Here are the accounting rules that apply to craftsmen and how to apply them easily with software like Bizyness.

Accounting obligations for a micro-entrepreneur or sole trader craftsman

Choosing the micro-enterprise status means benefiting from very lightweight accounting. The craftsman simply needs to keep up to date:

• a revenue book that chronologically summarizes their activity, with the amount of each service and the source of the income received;
• a register listing all purchases;
• invoicing that complies with the obligations common to all businesses.

Invoicing software for craftsmen is configured to issue invoices that comply with the law. They are automatically recorded in the revenue book. At the same time, the craftsman logs each expense, which is automatically added to the purchase register.

For a sole trader, the time spent on bookkeeping becomes negligible with good accounting software. Besides entering invoices, purchases and expenses, their only remaining task is checking for unpaid invoices, so they can follow up with customers who have not paid on time.

Accounting obligations for craftsmen under the actual tax regime

Craftsmen who choose to be taxed under the actual tax regime are subject to commercial accounting rules. Whether under the simplified actual regime or the normal actual regime, their accounting is the same as that of merchants.

In this case, you need to choose software like Bizyness that lets you meet the following obligations:

• every service must be invoiced;
• all transactions affecting the company’s assets must be recorded chronologically (purchases, customer invoices, banking operations, etc.), and each transaction must be supported by a proof document (purchase and sales invoices, bank statements, etc.);
• the craftsman must keep an accounting ledger;
• once a year, the craftsman must carry out an inventory to record the value of the company’s assets and liabilities;
• once a year, at the end of each financial year, they must draw up annual accounts based on their inventory and accounting records: balance sheet, income statement, and notes.

Annual accounts produced with invoicing software for craftsmen

Thanks to invoicing software for craftsmen, annual accounts are produced very simply, in just a few clicks, provided you have entered each of your transactions throughout the year.

Software configured for the actual tax regime generates the various annual accounts by sorting the data it has available.

The balance sheet produced by invoicing software for craftsmen

The balance sheet provides a snapshot of the company’s assets as of the closing date. It details:

• the company’s assets: cash, fixed assets, inventory, and receivables;
• the liabilities, which total loans, debts, and partner contributions.

The income statement

The income statement lists:

• all income, which is mainly revenue;
• all expenses incurred by the company during the past financial year: purchases, rent, salaries, etc.

The notes to the accounts

The notes to the accounts are a supplementary document that helps in understanding the income statement and the balance sheet.

Below certain thresholds, craftsmen are allowed to present a simplified balance sheet and income statement. This applies if the company has fewer than 50 employees, if its annual revenue remains below 8 million euros, or if its total balance sheet is below 4 million euros.

Mandatory accounting ledgers

Invoicing software for craftsmen also lets you produce the 3 mandatory accounting ledgers.

1. The journal ledger, which chronologically lists all transactions recorded in the accounts.

2. The general ledger, which lists accounting transactions, grouped by account number and then by chronology.

3. An inventory ledger detailing the figures for assets and liabilities. This ledger was only mandatory for financial years starting before January 1, 2016.

Exemptions from accounting notes under the simplified actual regime

Below certain thresholds, craftsmen affiliated with the simplified actual tax regime can benefit from an exemption from preparing the notes to the accounts, opt for cash-basis accounting, and use a flat-rate valuation of their inventory and work in progress.

To benefit from this simplification, the company must not exceed two of the following three criteria:

• annual revenue excluding tax of €700,000;
• a total balance sheet of €350,000;
• 10 employees.

Cash-basis accounting

Under the simplified actual tax regime, you can use cash-basis accounting, which simplifies your bookkeeping.

During the year, you only need to record cash receipts and payments. Debts and receivables are only recorded on the closing date of the financial year.

Accounting obligations for craftsmen operating as a company

Accounting obligations for craftsmen operating as a company depend on the legal status they choose: EURL, SASU, SARL, SAS, etc.

They must check that the invoicing software for craftsmen they select is designed and configured for their status before committing. The simplest approach is to test the software during a free trial period, which lets them judge the quality of the tool. Software like Bizyness, for example, offers a free 15-day trial.

The benefits of accounting software for craftsmen

Thanks to your invoicing software for craftsmen, all your accounting is stored in the cloud. It doesn’t clutter your computer, and you don’t need to rent storage space yourself. Backups are also handled by the cloud administrator, which guarantees the integrity of your data. In general, all accounting records must be kept for 10 years.

Cloud storage lets you access your invoicing software from anywhere. You can share access with your team members if needed.

With invoicing software for craftsmen, you can be sure you’re compliant with tax authorities and you don’t waste time. It also makes it easier to check on customer payments, helping you avoid cash-flow gaps.