Simplified accounting: a practical guide for starters

28/05/2025

Are you starting as a sole proprietor or running a small business with an annual turnover below €500,000 (excluding VAT)? In that case, you can opt for simplified accounting. This system does not require double-entry bookkeeping. However, you still need to comply with several basic administrative obligations. What exactly do you need to record?

Purchase and sales journals: the foundation of your administration

Simplified accounting is based on two essential registers.

• Purchase journal: you record all incoming invoices and credit notes. For mixed expenses, such as electricity or telecommunications, you must indicate the professional and private portion. Also check that your company number is stated on each purchase invoice.

• Sales journal: you record all invoices issued to your customers, as well as any credit notes. If you use a daily receipts system, these must also be included. This gives you a clear overview of your income.

Do you work with daily receipts? The receipts journal is mandatory

Some businesses regularly receive small payments without issuing invoices. This is common for hairdressers, bakeries, or retail shops.

In that case, the law requires you to keep a daily receipts journal. Each day, you record the total amount of sales made without invoices. If no sales were made, you simply record €0.

Good to know: the daily receipts journal is integrated by default in the PIA Go! platform. This ensures you remain compliant with regulations.

Note: if you accept cash payments, you must also keep a cash book. This feature is not yet integrated into the platform, so you will need to maintain it manually or via another tool.

The profit and loss account: an annual overview of your business

At the end of the financial year, you must prepare a profit and loss account. This document provides an overview of your income, expenses, and the profit or loss of your business.

Unlike companies, you are not required to prepare a balance sheet listing assets and liabilities. However, one element remains important: stock variation impacts your result.

If your stock decreases compared to the beginning of the year, it means you have sold more goods. Your profit will therefore increase accordingly.

PIA Go! simplifies your accounting

PIA Go! helps you manage your simplified accounting efficiently. With automatic VAT calculations, clear reports, and support from your dedicated accountant, you can manage your administration with peace of mind. This allows you to fully focus on growing your business.

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FAQ

Simplified accounting is intended for sole proprietors and small businesses with an annual turnover below €500,000 excluding VAT.

In this system, you do not need to record each transaction with a corresponding entry. You simply keep track of your purchases, sales, and, if applicable, daily receipts.

Double-entry accounting is mandatory for companies and larger businesses. Each accounting entry is linked to a corresponding entry. The system is more complex but provides a more complete financial overview.

Yes, if you make sales to private individuals without issuing invoices.

In that case, you must record the total amount of your sales without invoices each day. If no sales were made, you simply record €0.

In PIA Go!, this daily receipts journal is integrated by default into the platform.

Simplified accounting can be used by sole proprietors and certain small companies whose turnover remains below the legal thresholds. This regime applies to most starters, except in specific sectors or if you voluntarily choose double-entry accounting.

At the end of the financial year, you prepare a profit and loss account. This includes your income, expenses, and result (profit or loss). You are not required to submit a balance sheet listing assets and liabilities. However, you must take stock variations into account, as they directly affect your profit.

PIA Go! helps you to:

• easily record your purchases and sales;
• use an integrated daily receipts journal;
• automatically calculate VAT and generate clear reports;
• benefit from support from a dedicated accountant when needed.

This ensures you remain compliant with regulations while spending more time on growing your business.

Charlotte
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.