The complete recipe for doing your own bookkeeping

Is it possible to do your own bookkeeping without using a chartered accountant?

It can seem a daunting task because of the many legal obligations involved, so we've given you the basics on how to do your own bookkeeping, as well as a list of software that could be useful on a day-to-day basis. Follow the guide!

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Why do your own bookkeeping?

While there are a number of services available for managing your accounts, it's fair to ask whether doing it yourself is worth the effort. In reality, home-made accounting offers a number of advantages:

• a significant reduction in costs by avoiding the often high fees associated with hiring a chartered accountant,

• greater control over your company's finances, giving you a complete and continuous view of its financial position

• immediate access to financial information, which is particularly advantageous for closely monitoring company performance and reacting quickly to market changes or opportunities.

These advantages are essential for rapid, informed decision-making. By having a direct and in-depth understanding of your finances, you are better equipped to plan for the future, manage risks and seize opportunities for growth.

Legal obligations depending on your status

The scope of legal accounting obligations in France is vast. These obligations differ according to the legal status of your business and its tax regime ( normal or simplified tax regime, etc.).

Doing your own accounts if you are a self-employed entrepreneur

If you are an auto-entrepreneur, you have fewer accounting obligations.

👉 The only obligations are to keep an up-to-date receipts ledger and a purchases ledger if your business involves the sale of goods.

Doing your own bookkeeping when you are an association

Depending on the scope of its activities, an association must choose between :

• simple accounting, known as cash accounting, based on receipts and disbursements,
• more sophisticated commitment accounting.

They may therefore be subject to the same obligations as a conventional company, depending on :

• the nature of its business
• the amount of funding received
• the size of the organisation.

Doing your accounting yourself if you are a sole trader

In this case, your accounting obligations depend on your activities.

For non-commercial profits (BNC), for example, the liberal professions are subject to :

• cash accounting,
• keeping a journal,
• filing a tax return.

For industrial and commercial profits (BIC), the obligations are the same as for BNC activities, but you are subject to accrual accounting (with receivables and payables).

Doing your own accounts for a SASU, SAS or SARL

Whether you are a single-member commercial company (EURL, SASU) or a multi-member commercial company (SAS, SA, SARL, etc.), you have more extensive obligations. You must :

• record all financial flows into and out of your company;
• carry out an inventory at least once a year;
• draw up annual accounts, which include: the balance sheet
• the profit and loss account
• notes to the accounts;
• keep accounting documents for at least 10 years.

Is a chartered accountant compulsory?

It is entirely possible to opt for in-house management of your accounts:

• using Excel, if your status allows,
• or using accounting software, as described below.

But even though it is not compulsory to use the services of a chartered accountant, you should be aware that it can be useful to call on the services of a certified accountant, if only to audit your annual accounts or to benefit from his or her sound advice.

💡 For companies subject to corporation tax (IS) in particular, a chartered accountant can help you make a number of tax optimisations. They can also help you break down your accounts in such a way as to reduce your taxable income.

Do I need accounting training?

For entrepreneurs who want to manage their accounts, training is recommended. The aim is to understand the accounting obligations in force and the best practices for using your company's accounting management tool.

There are several options available:

• enrol in accounting training courses: these may be offered by training centres or by a management centre, for example ;
• follow training courses offered by the publisher of the accounting software you have chosen;
• read our additionalaccounting tutorials and guides 😉

How do I choose the right accounting software?

Is it a good idea to do your accounting in Excel?

Since 1 January 2014, all businesses, with the exception of self-employed entrepreneurs and sole traders covered by the micro-business scheme, have been required to have a standardised electronic file known as the FEC, the accounting entries file.

This file cannot be created by anything other than accounting software (your own or your accountant's). This means that it is no longer possible to do your accounting without software.

However, entrepreneurs covered by the micro-entrepreneur scheme are not subject to the FEC. It is therefore possible for them to keep Excel accounts, particularly for the receipts book and the purchases register.

But beware of

• the risk of error: manual bookkeeping requires a great deal of attention to detail;
  
• wasting time: Excel does not allow you to optimise all the accounting processes, such as scanning invoices or synchronising bank accounts, for example. For this type of operation, you need accounting software;
  
• failure to update the tool in the event of new accounting rules: it's up to you to get informed and update your accounting accordingly.

💡 In the event of an audit and poor bookkeeping, there are heavy penalties for bad managers or fraudsters: company directors are liable to a fine of €500,000 and risk 5 years' imprisonment.

Can I do my accounts online?

Yes! There are many professional software packages available in SaaS mode.

But how do you choose the right accounting software? It all depends on the size of your company and the nature of your business.

It's also important to know what the software will be used for. Some tools go beyond simply managing your accounts and offer additional functions.

Here's a quick overview of the tools you can use to do your accounting online:

• Pre-accounting" software is useful for managing your invoicing, importing your bank accounts, generating your accounting entries, tracking your expenses and automating your VAT return. Here are some examples of solutions:
  • Abby, a strategic choice for small businesses with its automated invoicing and real-time tracking of expenses, ideal for accurate and simplified accounting management;
  • Dext, an easy-to-use tool that helps you automate your supplier invoice cycle;
  • Evoliz, which stands out for its ease of use and configuration;
  • Mister Compta, which automates up to 100% of your activities;

  • Odoo Accounting, the fully integrated solution that automatically synchronises your bank statements with your bank.

• Full-featured" accounting software lets you manage the steps that follow accounting entries: creation of the balance sheet and income statement, year-end closing, transmission of the tax return, and creation of legal documents. These solutions include :
  • MaCompta.fr, the ideal all-in-one solution for micro-businesses and SMEs, with telephone and e-mail support available whenever you need it;
  • Sage 100 c Accounting ;
  • Zefyr.
    
• Specialised accounting software automates accounting management for your business. These include :
  • Indy Comptabilité, which promises no-entry bookkeeping for self-employed professionals under the BNC regime;
  • iPaidThat, for automated invoice collection and entry for very small businesses and start-ups.

💡 You should know that in its 2016 Finance Act, the government passed a measure to put a stop to VAT fraud. This measure made it compulsory to use certified software from 1 January 2018.

Once you have chosen your accounting software, you need to set it up so that it meets your specific needs and that you make the best use of it.

Our 10 tips for doing your accounting yourself like a pro

In theory, our guide makes bookkeeping easier for you. But in practice, it's important for the long-term future of your business to keep good accounting practice in mind. So, without too much ado, here's a summary of our top 10 tips for managing your finances.

1. Keep your accounts on a regular basis: make sure you keep your accounts up to date, at best on a daily basis, and at least every week. This will give you a clearer picture of your company's financial situation and help you avoid any unpleasant surprises when you have to balance your books and close your accounts.

2. Draw up budgets and forecasts: use templates to plan and monitor all your financial movements. This way you can anticipate future financial needs and manage cash flow.

3. Take an accounting course: why not invest in a course to understand the basics of accounting? This will give you the knowledge and skills you need to manage your finances.

4. Use accounting software: accounting software allows you to automate and simplify accounting processes.

5. Keep personal and business finances separate: keep your personal finances separate from your business finances to avoid any confusion.

6. Be aware of tax obligations: keep up to date with the latest tax laws and accounting obligations to ensure compliance and avoid penalties.

7. Archive your documents regularly: keep a careful record of all your accounting documents, receipts and invoices, just in case (easy reference, audit needs).

8. Analyse your finances: take the time to analyse your finances to identify trends, opportunities and possible improvements.

9. Plan your liquidity: make sure you have enough funds to cover your current operations and future investments by planning your liquidity.

10. Consult with experts: managing your accounts yourself doesn't mean you can't consult experts if you need to. They can provide advice and check that your accounts are properly kept.

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Home-made accounting in a nutshell

Doing your own bookkeeping is both practical and rewarding. It gives you an in-depth understanding of your company's finances.

Keep in mind our 10 key tips for compliant, simplified bookkeeping. These practices will help you maintain sound financial management and avoid common pitfalls.