Unless you secretly enjoy the adminis-
trative side to independent professional activity – and experience tells me I am very much alone there – the title of this article may have struck fear in your heart, so allow me to clarify and calm those fears!
Many assume – as the Micrto-Entreprise statute is, by definition, ultra-simplified- that when it comes to social charges and income tax, they need do no more than issue invoices to their clients and make their monthly, or quarterly, online declarations of turnover via the net-entreprises.fr site. But this is not the case. There is no need to engage the services of a chartered accountant, as the require-ments remain simple, but what are they?
Separate bank account for Professional Activity
Since 1 January 2015, micro-entrepreneurs, whatever their field of activity, are required to dedicate a bank account for all financial transactions related to their professional activity. It must be separate from their personal bank account so that business and personal transactions are recorded separately. The key word here is separate as the bank fees for an official business account can bring tears to the eyes, and are wholly unnecessary expenditure.
Although banking in France is rarely free, check with your bank to see if they can offer a sweetener; for instance as an existing client of ING Direct, I was given 80€ to open a standard current account with a MasterCard, and which is subject to no bank charges whatsoever as long as it receives 750€ per month (get details here).
Purchase & Expenditure Book
The micro-entrepreneur benefitting from the simplified tax system must nonetheless keep some accounts, despite the permitted absence of annual statement of accounts or balance sheets.
Only the chronological record of revenue and expenditure is required.
A paper copy for manual completion can be downloaded here.
Accounting Software
If you prefer a non-paper solution, an Excel spreadsheet is insufficient because the cells remain modifiable. There are numerous packages available, but as most small businesses need to keep their expenditure to a minimum I am currently investigating free options.
I use NetWips who offer a basic package for a single user and activity of up to 10 invoices per month, absolutely free of charge. Although it is currently only available in French, correct set-up ensures the obligatory wording is in place on every invoice issued making invoicing a doddle, and since I twinned it with my separate bank account it even informs me by email every time an invoice is paid.
By Jo-Ann Howell of French Admin Solutions, a company which helps English-speaking residents successfully navigate all aspects of bringing their family, work and home lives to France. Join the community to get your questions answered.
Accountancy obligations for
Micro-Entrepreneurs…