Cash-basis profit statement (EÜR)

In short: The cash-basis profit statement determines profit as the difference between business income and business expenses. It suffices for almost all small businesses and replaces the laborious balance sheet.

In more detail: The legal basis is § 4 (3) EStG. The inflow and outflow principle applies: an income counts in the year the money flows, an expense in the year it is paid. The EÜR annex is submitted electronically with the tax return via ELSTER.

In detail

• Who may use it: traders below the bookkeeping thresholds (§ 141 AO: revenue over 800,000 euros or profit over 80,000 euros per year) and not entered in the commercial register.
• Income: sales proceeds, fees, tips. With standard VAT also the VAT.
• Expenses: goods purchased, materials, software, domain, advertising, postage, insurance, travel, depreciation.
• Receipts: every entry needs a receipt, retention 8 years (Retention periods for receipts).
• Software: a spreadsheet is enough at first, later bookkeeping software (Bookkeeping software and cash book).

See also: Business income and business expenses, Revenue and profit: the difference