Accounting obligations of a commercial business

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

A commercial business is subject to several accounting obligations. These include invoicing, keeping accounts and certain records, drawing up annual accounts and keeping accounting documents.

The accounting obligations of the business depend on its tax system: simplified real system or ordinary real tax system.

It shall be subject to real simplified tax regime at the TVA if it fulfills all of the following conditions:

  • The turnover of the business 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 business is submitted the normal real tax regime if it exceeds these thresholds.

Simplified 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, the 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? ».

A commercial business must keep an accounting. On the other hand, when it is subject (automatically or optionally) to a simplified real tax regime, it may keep accounts simplified.

Simplified accounting has the following consequences:

  • Possibility to draw up a simplified balance sheet, a simplified income statement and a simplified annex
  • Recording of accounting transactions on the cash books at the date of payment or receipt
  • Aggregation of treasury book information in the journal book every 3 months instead of every month
  • Non-compulsory recording of incidental overheads paid in cash and representing less than 1 per 1000 of turnover excluding tax
  • Non-mandatory accrual of recurring overhead expenses over a period of less than 1 month
  • Recording of receivables and debts at the end of the accounting year
  • Possibility of assessing stocks in a simplified way (flat-rate valuation, application of a margin allowance for each category of goods...))

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

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

Who shall I contact

The commercial business can also join an approved management organization that can help it in its management (taxation, accounting, etc.). In this case, it shall communicate its annual accounts to the recognized management organization to which it is a member each year.

Warning  

In case of willful omission in your billing (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 business shall prepare the following accounting documents:

  • Newspaper : book in which all movements affecting the business' 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

Warning  

Where the business belongs to a group of businesses, it cannot benefit from simplified accounting. It must record all the movements that affect its assets every day (collection, payment, debt, fees...).) In addition, it must centralize its accounting entries in the journal book every month.

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 registered as soon as the merchant establishes them to guarantee their content.

Business not belonging to a group of businesses

Micro-company

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

  • Total balance sheet less than or equal to €450,000
  • Net amount of turnover not exceeding €900,000
  • Average number of employees employed during the year less than or equal to 10

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

  • Total balance sheet less than or equal to €450,000
  • Net amount of turnover not exceeding €900,000
  • Average number of employees employed during the year less than or equal to 10

At the end of each accounting year, it must establish its annual accounts. The annual accounts consist of a balance sheet, a profit and loss account and an appendix.

The business is not obliged to draw up the annex which normally makes up the annual accounts.

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of annual accounts.

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 it must establish its annual accounts. 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).

The business subject to the simplified business tax system may submit its annex in an abbreviated form.

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of 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 business shall establish its annual accounts.

They consist of a balance sheet, a profit and loss account, a management report and an appendix.

The business subject to the simplified business tax system may submit its annex in an abbreviated form.

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of annual accounts.

Business belonging to a group of businesses

At the end of each financial year, the business must draw up its annual accounts. The annual accounts consist of a balance sheet, a profit and loss account, a management report and an appendix. Where the business is the one controlling the group of businesses, it must also establish consolidated accounts.

The business, once it has prepared its annual and consolidated accounts (where necessary), shall submit them online on the website of the company formalities desk.

For more information, you can consult our fact sheet on the filing of annual accounts.

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 depreciation and provisions).

The management report sets out the business’s situation during the previous financial year, its foreseeable development, significant events between the year-end and the date on which it is established, and its research and development activities.

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

The business must keep its accounting documents and supporting documents 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 business 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, the 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? ».

A commercial business must keep an accounting.

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

The business can keep its own accounts. On the other hand, when it decides to entrust to a professional, it must obligatory contact a chartered accountant registered with the order:

Who shall I contact

The commercial business can also join an approved management organization (OGA) which can help it in its management (taxation, accounting...).) However, it must communicate its annual accounts to the approved management body to which it is a member each year.

Warning  

In case of willful omission in your billing (inaccurate or fictitious entries), the person responsible risks a prison sentence of up to 5 years and €500,000 of fine.

The business 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 maturities every year at the most.
  • 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 has a identification number. 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 registered as soon as the merchant establishes them to guarantee their content.

Business not belonging to a group of businesses

Micro-company

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

  • Total balance sheet less than or equal to €450,000
  • Net amount of turnover not exceeding €900,000
  • Average number of employees employed during the year less than or equal to 10

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

  • Total balance sheet less than or equal to €450,000
  • Net amount of turnover not exceeding €900,000
  • Average number of employees employed during the year less than or equal to 10

At the end of each accounting year it must establish its annual accounts. 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).

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of annual accounts.

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 it must establish its annual accounts. 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).

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of 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 it must establish its annual accounts. 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.

After preparing its annual accounts, business must file them online on the company formalities window or directly to registry of the commercial court on paper. The Registry will then forward them to the Bodacc.

For more information, you can consult our fact sheet on the filing of annual accounts.

Business belonging to a business group

At the end of each financial year, the business must draw up its annual accounts.

The annual accounts consist of a balance sheet, a profit and loss account, a management report and an appendix. Where the business controls the group of businesses, it must also draw up consolidated accounts.

The business, once it has prepared its annual and consolidated accounts (only for the mother business), must submit them online at the company formalities desk.

For more information, you can consult our fact sheet on the filing of annual accounts.

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 depreciation and provisions)

The management report sets out the business’s situation during the previous financial year, its foreseeable development, significant events between the year-end and the date on which it is established, and its research and development activities.

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

The business must keep its accounting documents and supporting documents at least 10 years.

Warning  

The retention of documents is necessary in case of control of the tax administration or litigation. A business that has not kept its documents is liable to a fine of €10,000.