Accounting, tax records and overview of the money of the self-employed
Running documents is not the same as knowing how much you can pay. Differences between tax records, accounting and own financial statements.
Not every self-employed person keeps accounts
The accounts, the IRS's tax records and the actual overview of the money have a different purpose. The selected regime determines what you are carrying for taxes; the family budget shows what you can safely use at home. The cost flat-rate does not mean that you do not have to keep any records.
The method of carrying out the supporting documents depends on the legal obligations and tax methods chosen. Tax records are mainly used to establish the tax base and contain data on income, expenditure, assets and debts. Accounting is a different system under the Accounting Act. The accounting obligation may result from statutory conditions; someone decides on a voluntary basis for it.
| Overview | What are they for? | What to think about |
|---|---|---|
| Tax records | Supporting documents for income tax on the application of actual expenditure, provided that the conditions are met. | Income and expenditure are not enough: assets and debts are also included. |
| Accumulated expenditure | Proof of income and other statutory claims required. | A flat-rate issue does not mean zero record management. |
| Accounting | Systematic image of property, liabilities, costs and revenues. | The accounting result and immediate cash are not the same. |
| Custom overview of money | Payment plan, operation, compulsory payments and family amounts. | Helps to drive money, but does not replace the prescribed records. |
What to keep together
- Documents and contracts related to revenue and expenditure.
- List of invoices issued and received, maturity and actual payments.
- Overview of property, liabilities and other data according to your regime.
- The plan of money for tax, insurance and irregular business costs.
- A record of how much you carry for the household and what remains for the operation of the company.
Accountancy profit is not an account balance
The contract can be recorded in proceeds, although the customer has not yet paid. On the contrary, some payments are not the whole cost of the same period. Therefore, it is useful to monitor separately the accounting or tax result and the cash flow. If you have an accounting officer, not only on the submission of the document but also on a regular, understandable explanation.
Where the budget and its PDF will help
The budget calculator on this website solves households, not business accounts.You enter in it the means applicable at home and your family spending. PDF helps separate consumption from savings and show deficits. Accounting documents and inventories do not create inventories. For personal goals, the financial plan is followed by a time frame.
The text is a general review, not an individual tax, accounting or legal assessment. Check with the accounting officer, tax advisor or competent authorities for the specific procedure and current obligations.
Numbers for your own situation
The topics of the article are followed by separate model calculations with the possibility of PDF output.