Do you run a SARL or EURL? Here are your accounting requirements!

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 accounting, accounting books and annual financial statements... The requirements are detailed here, as are the exceptions that may help to lighten your accounting load.

Open your accounting book on the "obligations" page:

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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 current legislation;
  
• make declarations in good faith;
  
• keep a chronological record of all transactions affecting the company's assets:
  • purchases and sales,
  • banking transactions,
  • cash, etc.
    
• draw up rigorous, formalized invoices, including all obligatory information, in particular ;
  
• carry out an inventory at least once a year to report on the value of assets and liabilities;
  
• keep accounting and other documents 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 every day. Every accounting operation is taken into account.
  
• a general ledger: this book records accounting entries from 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.

☝️ As of January 1, 2016, it is no longer mandatory for a SARL or EURL to keep an inventory book (decree no. 2015-903 of July 23, 2015 on the accounting obligations of merchants).

Annual financial statements

For SARLs and EURLs, the following annual financial statements are required:

• a balance sheet, which summarizes a company's assets and liabilities at a given point in time;
  
• an income statement, which records the transactions of the last financial year. The result indicates whether the company has made a profit or a loss.
  
• an appendix, a note that accompanies the balance sheet and income statement to provide additional information or help in understanding them.

☝️ Exception: SARLs and EURLs are exempt from the appendix requirement if they did not exceed two of the following three thresholds during the last financial year:

• balance sheet total: €350,000,
• sales excluding VAT: €700,000,
• average number of employees: 10.

Below, we detail other income statement requirements for small and medium-sized SARLs and EURLs.

Managers of SARLs and EURLs are required to file their annual financial statements with the Clerk of the Commercial Court. This must be done within one month of approval of the accounts at the shareholders' meeting.

Reviewing accounts during a statutory audit

A statutory audit is not mandatory for all SARL/EURLs.

Only in the following cases:

• when two of the following three thresholds are exceeded:
  1. 8 million euros in sales excluding VAT,
  2. 4 million euros balance sheet total,
  3. 50 employees on average over the financial year.
• at the initiative of the partners (up to 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 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 under the simplified tax regime can :

• keep cash accounts throughout the year,
• and therefore record receivables and payables only at the close of the accounting period.

👉 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:

• 20 million euros balance sheet total,
• 40 million euros in sales,
• 250 employees.

Small SARLs and EURLs

They may present simplified annual financial statements: 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 euros,
• sales less than or equal to 12 million euros,
• no more than 50 employees.

EURL and super-simplified accounting

In the case of EURLs where the sole shareholder and the manager are the same person, then they can fall under the micro-enterprise regime. They then have the same accounting obligations as an auto-entreprise.

💡 This tax regime is open to auto-entrepreneurs as well as sole proprietorships, EIRLs and EURLs.

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SARL, EURL: how to ensure compliance with accounting obligations?

Option no. 1: call in a chartered accountant

Is a chartered accountant mandatory for the accounting of a SARL or EURL?

The answer is no.

However, it is advisable to call on a chartered accountant when setting up a business, or to support you in 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? SARL or EURL managers, share your experiences, good or bad, in the comments!