Do you run a SARL or EURL? Here are your accounting obligations!
Have you just set up a SARL (société à responsabilité limitée) or EURL (entreprise unipersonnelle à responsabilité limitée) and are wondering about your accounting obligations? Then you've come to the right place.
In this article, you'll find all the accounting requirements for SARLs and EURLs: regular bookkeeping, accounting books and annual accounts, etc. The requirements are set out in detail, along with exceptions that may make your bookkeeping easier.
Open your account book on the "obligations" page:
Obligation to keep regular and accurate accounts
The first accounting obligation for SARLs and EURLs is to keep regular and accurate accounts. What does this mean? The obligation to :
- keep accounts in accordance with the law in force;
- make declarations in good faith;
- record all movements affecting the company's assets in chronological order:
- purchases and sales
- banking transactions,
- cash, etc.
- draw up rigorous, formalised invoices that include all the compulsory information, in particular ;
- carry out an inventory at least once a year to take stock of the value of the company's assets and liabilities;
- keep accounting documents and other records for 10 years.
Keeping the books of an SARL
SARLs and EURLs are required to keep three sets of books:
- a daybook, or accounting journal: records all movements affecting the company's assets each day. Every accounting operation is taken into account.
- a general ledger: this book records the accounting entries in the accounting journal and breaks them down according to the company's chart of accounts, by account number.
- an inventory book: this document records all movements in the company's assets and liabilities.
☝️ Since 1 January 2016, it has no longer been compulsory for a SARL or EURL to keep an inventory book (decree no. 2015-903 of 23 July 2015 on the accounting obligations of traders).
Annual accounts
With regard to the annual accounts to be kept, the following are expected for SARLs and EURLs:
- a balance sheet, which summarises a company's assets and liabilities at a given point in time;
- an income statement, which records the transactions that took place during the last financial year. The result shows whether the company made a profit or a loss.
- an appendix, a note that accompanies the balance sheet and profit and loss account to provide additional information or help to understand them.
☝️ Exception: limited liability companies (SARLs) and limited liability companies (EURLs) are exempt from the requirement to provide notes to the accounts if they did not exceed two of the following three thresholds during the last financial year:
- total balance sheet: €350,000,
- sales excluding VAT: €700,000,
- average number of employees: 10.
Below, we detail other reliefs for small and medium-sized SARLs and EURLs with regard to the profit and loss account.
Managers of SARLs and EURLs are obliged to file their annual accounts with the Registrar of the Commercial Court. This must be done within one month of approval of the accounts by the general meeting of shareholders.
Reviewing accounts during a statutory audit
It is not compulsory to carry out a statutory audit of the accounts for all SARL/EURLs.
Only in the following cases:
- when two of the following three thresholds are exceeded:
- 8 million euros turnover excluding VAT,
- 4 million euros in balance sheet total
- 50 employees on average over the financial year.
- on the initiative of the shareholders (holding 33.33% of the capital) who decide to appoint a statutory auditor;
- when one or more partners (up to 10% of the capital) ask a judge to appoint a statutory auditor.
💡 The statutory audit of the accounts is carried out by a statutory auditor.
Simplified tax regime for SARLs and EURLs
Among all the accounting obligations of companies, SARLs and EURLs can benefit from simplifications in their accounting management, under certain conditions.
Accounting simplifications
SARLs and EURLs covered by the simplified tax regime can :
- keep cash accounts throughout the financial year,
- and therefore only record receivables and payables at the end of the financial year.
👉 In this case, only cash receipts and disbursements need be recorded on a daily basis.
Simplified annual accounts
Medium-sized SARLs and EURLs
They may present a simplified income statement if they do not exceed two of the following three thresholds:
- total balance sheet of €20 million
- 40 million euros in sales,
- 250 employees.
Small SARLs and EURLs
They may present simplified annual accounts: simplified balance sheet, income statement and notes. To do so, they must not exceed two of the following three thresholds:
- total balance sheet less than or equal to €6 million,
- sales less than or equal to €12 million,
- fewer than or equal to 50 employees.
EURL and super-simplified accounting
In the case of EURLs where the sole shareholder and the manager are the same person, they may be covered by the micro-enterprise scheme. They then have the same accounting obligations as an auto-entreprise.
💡 This tax regime is open to both auto-entrepreneurs and sole proprietorships, EIRLs and EURLs.
SARL, EURL: how to ensure compliance with accounting obligations?
Option 1: use a chartered accountant
Is a chartered accountant required to do the accounting for a SARL or EURL?
The answer is no.
However, it is advisable to use a chartered accountant when setting up a business, or as a support for your accounting and tax management. Its advisory role is also worth considering.
Option 2: Would you prefer to do your own bookkeeping?
In this case, we recommend that you :
- find out about the accounting obligations associated with your status,
- choose the tax system that suits you (actual, simplified),
- use accounting software to automate your bookkeeping and ensure that the accounting statements you produce comply with regulations.
So, which option is right for you? Managers of SARLs or EURLs, share your experiences, good or bad, in the comments section!
Article translated from French