Accounting obligations of the trader (sole trader)

Verified 07 September 2026 - Entreprendre Service Public / (Prime Minister)

The individual entrepreneur (IC) who carries out a commercial activity must fulfill several accounting obligations. These include invoicing, keeping accounts and certain records, drawing up annual accounts and keeping accounting documents.

In this sheet we present the rules concerning the trader subject to a actual tax regime at the TVA (simplified or normal).

It is subject to simplified real tax regime it fulfills all of the following conditions:

  • The turnover of the company shall not exceed:
    • €945,000 for the sale, catering or provision of accommodation
    • €286,000 for other activities
  • The amount of TVA owed to it is less than €15,000

The merchant is subject to normal real tax regime if it exceeds these thresholds.

To know the accounting obligations of the micro-entrepreneur, it is possible consult the corresponding sheet.

Simplified real regime

As a professional, it is necessary to respect the rules of billing, in particular by including in invoices the mandatory particulars. Invoices must also comply with rules regarding their format and their transmission.

Since 1er September 2026, individual businesses established in France and subject to TVA must be able to receive electronic invoices.

The obligation toissue electronic invoices is applicable according to the size of the company:

  • since 1er September 2026 for large companies and the ETI
  • from 1er September 2027 for PME and micro-companies

From these same deadlines, some data will also have to be transmitted to the administration in electronic form (e-reporting).

Please note

To know the applicable obligations and the steps to be taken, consult the sheet « How to comply with the obligation of electronic invoicing? ».

The trader who exercises a commercial activity must keep accounts.

When it is subject (ipso jure or optional) to a real simplified tax regime, its accounts can be kept in a super-simplified. To benefit from this scheme, the individual entrepreneur must opt for it. Each year, he must indicate whether he opts for the super-simplified accounting system on his income statement No 2031 by ticking the box provided for this purpose:

Industrial and Commercial Profit Statement (BIC)

It must then record chronologically transactions (purchases, sales, borrowing...) that affect heritage from his company. It must also control the value of its assets and liabilities maximum every 12 months through an inventory. The company can carry out a simplified assessment of stocks and production.

The merchant can keep his own accounts. On the other hand, when it decides to entrust it to a professional, it must be addressed to a chartered accountant registered with the order :

Who shall I contact

The merchant can also join an approved management organization that can help him manage his company (taxation, accounting, etc.). In this case, it shall communicate its annual accounts to the approved management organization to which it is a member on an annual basis.

Warning  

In case of willful omission in the merchant's invoicing (inaccurate or fictitious entries), the person who committed the breach risks a prison sentence of up to 5 years and €500,000 of fine.

The trader shall prepare the following accounting documents:

  • Newspaper : book in which all movements affecting the company's assets are recorded. Only receipts and payments are recorded daily, operation by operation. Debts and receivables shall be recognized only at the end of the accounting year. On the other hand, overheads must be recorded at regular maturity every year at the most. The accounting entries can be centralized every 3 months.
  • Ledger : book that gathers all accounts. It reproduces the information from the journal book, sorting it by account and in the order of number provided by the general chart of accounts (CCP). Operations are listed in chronological order.
  • Manual of Accounting Procedures : a document that describes the procedures and accounting organization for understanding the processing system and the performance of controls.

Each book receives one identification number listed by a registrar. They must also be sides and initialed.

Any accounting record shall specify the origin, the content and assigning to an account of each data item, and the references the supporting documentation.

Books may be required to electronically with computer software or manually without blank or tampering. They must be dated and recorded as soon as the merchant establishes them to guarantee their content.

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Small company

The business is a small company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €7.5 MILLION
  • HT net amount of revenue less than or equal to €15 000 000
  • Average number of employees employed during the year less than or equal to 50

The business is a small company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €7.5 MILLION
  • HT net amount of revenue less than or equal to €15 000 000
  • Average number of employees employed during the year less than or equal to 50

At the end of each accounting year, the annual accounts company. They consist of a balance sheet, a profit and loss account and an appendix. They can be presented under a simplified form (document template).

The trader subject to the simplified tax system is not obliged to draw up the annex which normally forms the annual accounts.

Average company

The business is an average company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €25 000 000
  • HT net amount of revenue less than or equal to €50 000 000
  • Average number of employees employed during the year 250 or less

The business is an average company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €25 000 000
  • HT net amount of revenue less than or equal to €50 000 000
  • Average number of employees employed during the year 250 or less

At the end of each accounting year, the annual accounts company. They consist of a balance sheet, a profit and loss account and an appendix. The company may present its income statement in simplified form (document template).

The trader subject to the simplified tax system is not obliged to draw up the annex which normally forms the annual accounts.

The balance sheet presents the elements assets and liabilities of the company, and shall show, separately, equity.

The income statement brings together income (sales, interest on invested capital, etc.) and expenses (purchases, salaries, taxes, etc.). It shows the profit or loss for the year (after deduction of depreciation and provisions).

The Annex comments on and completes the balance sheet and the income statement.

The merchant has the obligation to keep his accounting documents and supporting documents (invoices, records...)) at least 10 years from the end of the accounting year.

Warning  

The retention of documents is necessary in case of control of the tax administration or litigation. The merchant who has not kept his documents is liable to a fine of €10,000.

Normal real tax regime

As a professional, it is necessary to respect the rules of billing, in particular by including in invoices the mandatory particulars. Invoices must also comply with rules regarding their format and their transmission.

Since 1er September 2026, individual businesses established in France and subject to TVA must be able to receive electronic invoices.

The obligation toissue electronic invoices is applicable according to the size of the company:

  • since 1er September 2026 for large companies and the ETI
  • from 1er September 2027 for PME and micro-companies

From these same deadlines, some data will also have to be transmitted to the administration in electronic form (e-reporting).

Please note

To know the applicable obligations and the steps to be taken, consult the sheet « How to comply with the obligation of electronic invoicing? ».

The trader who exercises a commercial activity must keep accounts.

It must record from chronologically transactions (purchases, sales, borrowing...) that affect heritage from his company. It must also control the value of its assets and liabilities maximum every 12 months through an inventory.

The merchant can keep his own accounts. On the other hand, when it decides to entrust it to a professional, it must be addressed to a chartered accountant registered with the order :

Who shall I contact

Warning  

In case of willful omission in the merchant's invoicing (inaccurate or fictitious entries), the person who committed the omission risks a prison sentence of up to 5 years and €500,000 of fine.

The merchant can also join an approved management organization that can help the entrepreneur in the management of his company (taxation, accounting...).) However, it must communicate its annual accounts to the approved management body to which it is a member each year.

The merchant must establish a number of mandatory accounting records. These are the books:

  • Newspaper : book in which all movements affecting the company's assets are recorded. They are recorded day by day, operation by operation.
  • Ledger : book that gathers all accounts. It reproduces the information from the journal book, sorting it by account and in the order of number provided by the general chart of accounts (CCP). Operations are listed in chronological order.
  • Manual of Accounting Procedures : a document that describes the procedures and accounting organization for understanding the processing system and the performance of controls.

Each book receives one identification number listed by a registrar. They must also be sides and initialed.

Any accounting record shall specify the origin, the content and assigning to an account of each data item, and the references the supporting documentation.

Books may be required to electronically with computer software or manually without blank or tampering. They must be dated and recorded as soon as the contractor establishes them to guarantee their content.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Small company

The business is a small company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €7.5 MILLION
  • HT net amount of revenue less than or equal to €15 000 000
  • Average number of employees employed during the year less than or equal to 50

The business is a small company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €7.5 MILLION
  • HT net amount of revenue less than or equal to €15 000 000
  • Average number of employees employed during the year less than or equal to 50

At the end of each accounting year, the annual accounts company. The annual accounts consist of a balance sheet, a profit and loss account and an appendix. They can be presented under a simplified form (document template).

Average company

The business is an average company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €25 000 000
  • HT net amount of revenue less than or equal to €50 000 000
  • Average number of employees employed during the year 250 or less

The business is an average company if it fills 2 of the 3 criteria following:

  • Total balance sheet less than or equal to €25 000 000
  • HT net amount of revenue less than or equal to €50 000 000
  • Average number of employees employed during the year 250 or less

At the end of each accounting year, the annual accounts company. The annual accounts consist of a balance sheet, a profit and loss account and an appendix. The company may present its income statement in a simplified format.

The balance sheet presents the elements assets and liabilities of the company, and shows, separately, the equity.

The income statement gathers income (sales, interest on invested capital, etc.) and expenses (purchases, salaries, taxes, etc.), and shows the profit or loss for the year (after deduction of depreciation and provisions).

The Annex comments on and completes the balance sheet and the income statement.

The merchant has the obligation to keep his accounting documents and supporting documents (invoices, records...)) at least 10 years from the end of the accounting year.

Warning  

The retention of documents is necessary in case of control of the tax administration or litigation. The merchant who has not kept his documents is liable to a fine of €10,000.