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    Categories: Education

Accounting for a construction company (BTP): accounting obligations and specificities

The building companies , more commonly called “construction companies”  (for building and construction companies ) are required, like other companies, to hold an accounting . They must comply with the accounting obligations in force for artisans and / or traders. Compta-Facile  summarizes here all the accounting obligations of building companies as well as the specificities of the accounting of a construction activity .

 

Accounting Obligations of Building Enterprises

A professional in the construction, maintenance and repair of buildings is deemed to be a craftsman if the company has fewer than 10 employees (when it makes purchases-resales of products, the activity will also be commercial) . If it counts more than 10, it will be commercial . In all cases, identical accounting obligations shall apply. The basic principles are as follows.

It is the manager or the entrepreneur who must prepare the annual accounts of his structure (even if he has the right to be assisted by a chartered accountant). A manual describing the accounting organization of the company must also be drawn up (if the complexity of the latter justifies it). Finally, the company must keep two books of account.

There are, however, exemptions and accounting reductions for smaller structures.

 

Accounting Obligations of Construction Companies

A business can be exercised by a commercial company by the form as an EURL, a SASU for single-person forms (or a limited liability company and a SAS when there are several partners) or as an SA or a CNS for example. With regard to their accounts , these companies have an obligation :

  • To record chronologically all movements affecting their assets,
  • To make invoices to the attention of their customers by omitting any obligatory mention ,
  • To carry out an inventory at least once every twelve months.

Construction companies under the simplified tax regime (RSI) can benefit from an accounting relief measure represented by super-ting . This provision allows them not to apply the rules of commercial accounting (receivables and payables), but those of treasury accounting, throughout a financial year. The recognition of receivables and debts is made only at the end of the accounting period. To benefit from this, the company must achieve a turnover of less than EUR 238 000 (for service providers) or EUR 789 000 (for buying and selling activities) and not opt ​​for the real normal.

At each closure of accounts, the building company must draw up annual accounts. These  financial statementsinclude:

  • An assessment : it gives an indication of the composition of the company’s assets (its debts and its claims, in the broad sense of the term);
  • An income statement : it measures the wealth created by an enterprise in an accounting year (or, where appropriate, the wealth destroyed);
  • An appendix : it provides additional information that is generally not visible when reading a balance sheet or an income statement.There are various presentations of each state and many reductions are granted to the TPE and SME:
  • Micro-enterprises (in the economic sense, ie those not exceeding 2 of the 3 thresholds: total balance sheet ≤ € 350 K, turnover ≤ € 700 K, employees ≤ 10): exemption from appendices and presentation A balance sheet and an income statement in abbreviated form;
  • Small enterprises  (in the economic sense also those that do not exceed 2 of the following 3 thresholds: total balance sheet ≤ € 4 million, turnover ≤ € 8 million, employees ≤ 50): presentation of an abridged appendix (In the case of simplified taxation, if not simplified), and presentation of a balance sheet and an income statement in abbreviated form;
  • Large companies  (those exceeding the thresholds presented above): presentation of a balance sheet, income statement and a basic appendix.

Accounting Obligations of Individual Builders

 

When the construction biusiness s carried out in its own name, that is to say within a sole proprietorship , the accounting is less restrictive It is almost non-existent for a particular form of business.

A micro-construction company (for the purposes of taxation this time) is an enterprise with a turnover not exceeding € 33,200 (services) or € 82,800 (purchase-resale). It shall not keep accounts and shall be exempt from drawing up annual accounts. However, it must prepare invoices and proper form (more information: the invoice of a self-employed company or a micro-company ) and fill a book of receipts and a register of purchases .

An undertaking not under the micro-system may fall under one of the following two statuses:

  • The simplified system of taxation  (subject to thresholds of turnover): it has the option of opting for super-simplified accounting  , knowing that the relief is more extensive than for companies (it can, in addition, Evaluate inventories and work in progress on a simplified basis, centralize quarterly accounting entries and deduct fuel costs using a flat-rate schedule;
  • The  normal regime of the real  : in this case, the company has the same obligations as those envisaged for commercial companiesAs regards the annual accounts:
  • An individual construction company is almost systematically exempted from the annex (a simplified annex must be drawn up only if the undertaking is subject to the normal regime and exceeds 2 of the following three thresholds: total balance sheet ≤ € 350 000, Total turnover ≤ € 700,000, employees ≤ 10);
  • A micro-enterprise in the economic sense is exempt from drawing up a balance sheet, an income statement and an annex;
  • Any other company must draw up an abbreviated balance sheet and profit and loss account if it does not exceed 2 of the following three thresholds: total balance sheet ≤ € 4 million, turnover ≤ € 8 million, employees ≤ 50 Otherwise, these are “core” states that need to be established).
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