The complete recipe for doing your own bookkeeping

By Cécile Sourbes

Published: October 22, 2024

Is it possible to do your own bookkeeping without the help of a chartered accountant?

It can be a daunting exercise, given the many legal obligations involved, so we've provided you with the basics of doing your own bookkeeping, as well as a list of software packages that could be of use to you 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 to help you manage your bookkeeping, it's fair to ask whether it's worth doing it yourself. 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 your company's financial situation,
immediate access to financial information, particularly advantageous for closely monitoring company performance and reacting quickly to market changes or opportunities.

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

Legal obligations to be aware of, depending on your status

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

Doing your accounting yourself if you're an auto-entrepreneur

If you are an auto-entrepreneur, you are subject to simplified 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 accounting yourself as an association

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

simple accounting, based on cash receipts and disbursements,
more advanced commitment accounting.

It 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 structure.

Doing your own accounting when you're a sole trader

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

For non-commercial profits (BNC), for example, self-employed professionals 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 accounting when you're a SASU, SAS, SARL

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

record all financial flows into and out of your company;
carry out an inventory at least once a year;
draw up annual financial statements, including: balance sheet,
income statement
notes;
keep accounting records for at least 10 years.

Is a chartered accountant compulsory?

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

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

But even if it's not compulsory to use a chartered accountant, you should know that it can be useful to call on a certified accountant, if only to audit your annual accounts or to benefit from his or her sound advice.

💡 For companies subject to corporate income tax (IS) in particular, a certified accountant can help you achieve a number of tax optimizations. He can also help you break down your accounts to reduce your taxable income.

Do I need accounting training?

For entrepreneurs wishing to manage their accounting, training is recommended. The aim is to understand current accounting obligations and best practices for using your company's accounting management tool.

Several options are available:

sign up for accounting training courses: these may be offered by training centers or by a management center, for example ;
follow training courses offered by the publisher of the accounting software you have chosen;
read our accounting tutorials and guides. 😉

How to choose the right accounting software?

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

Since January 1, 2014, all companies, with the exception of autoentrepreneurs and sole traders under the microenterprise scheme, have been required to have a standardized electronic file called FEC, the file of accounting entries.

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.

On the other hand, micro-entrepreneurs are not subject to the FEC. They can therefore keep Excel accounts, particularly for their receipts and purchases ledgers.

But beware of

the risk of error: manual bookkeeping requires a great deal of rigor;
loss of time: Excel cannot optimize all accounting processes, such as invoice scanning or bank synchronization. For these kinds of operations, you'll need accounting software;
the absence of tool updates in the event of new accounting rules: it's up to you to find out and update your accounting accordingly.

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

Can I do my accounting 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 simple accounting management and offer additional functionalities.

Here's a quick overview of online accountingtools :

Pre-accounting" software is useful for managing your invoicing, importing bank accounts, generating accounting entries, tracking expenses and automating VAT declarations. Here are some examples of solutions:
- Abby, a strategic choice for small businesses with its automated invoicing and real-time expense tracking, ideal for precise, 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 synchronizes 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 tax returns, and creation of legal documents. These solutions include :
- MaCompta.fr, a complete solution ideal for micro-businesses to SMEs, with telephone and e-mail support available when needed;
- Sage 100 c Accounting ;
- Zefyr.
Specialized accounting software automates accounting management for your business. These include :
- Indy Comptabilité, which promises data entry-free accounting for self-employed professionals under the BNC regime;
- iPaidThat, for automated invoice collection and entry for very small businesses and start-ups.

💡 Be aware that in its 2016 Finance Act, the government voted a measure to put an end to VAT fraud. This measure made the use of certified software mandatory from January 1, 2018.

Once you've chosen your accounting software, it's time to set it up to meet your specific needs and 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. In practice, however, it's important to keep good bookkeeping practice in mind if your business is to survive. So, without too much ado, here's a summary of our top 10 tips for managing your finances.

Keep your accounts up to date: 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 unpleasant surprises when you have to balance your books and close your accounts.
Draw up budgets and forecasts: use templates to plan and monitor all financial movements. In this way, you can anticipate future financial needs and manage cash flow.
Take an accounting course: why not invest in a course to understand the basics of accounting? This gives you the knowledge and skills you need to manage your finances.
Use accounting software: accounting software enables you to automate and simplify accounting processes.
Separate personal and business finances: keep your personal finances separate from your business finances to avoid confusion.
Be aware of tax obligations: keep up to date with the latest tax laws and accounting obligations to ensure compliance and avoid penalties.
Regularly archive your documents: carefully keep all your accounting documents, receipts and invoices, just in case (easy reference, audit needs).
Analyze your finances: take the time to analyze your finances to identify trends, opportunities and possible improvements.
Plan your liquidity: make sure you have sufficient funds to cover current operations and future investments by planning your liquidity.
Consult with experts: doing your own bookkeeping doesn't mean you can't consult experts if you need to. They can provide advice and check that your accounts are properly kept.