Proper bookkeeping refers to the maintenance of books and records in accordance with statutory principles and the derived principles of proper Bookkeeping (GoB). In particular, business transactions must be recorded completely, accurately, in a timely manner, systematically and traceably.
What does proper Bookkeeping mean?
Proper accounting Bookkeeping must document business transactions in such a way that their origin and progress can be traced.
The Bookkeeping must also be designed in such a way that an expert third party can gain an overview of the business transactions and the company's position within a reasonable timeframe.
The requirements that are decisive for this are often summarised under the term Principles of proper Bookkeeping in summary.
Which principles belong to proper Bookkeeping?
The essential requirements include, in particular:
- Completeness of required bookings and records
- Accuracy of recorded business transactions
- timely recording
- ordered record
- Traceability and verifiability
- Detectability of subsequent modifications
The specific design depends on which commercial and tax law Buchführungs and record-keeping obligations exist in the respective case.
What legal bases apply?
For merchants, essential requirements arise in particular from §§ 238 and 239 GERMAN COMMERCIAL CODE. Tax law requirements for Bookkeeping and records are contained in particular in §§ 145 and 146 AO.
Among other things, these regulations require a traceable Bookkeeping as well as complete, correct, timely, and orderly entries and records.
Does orderly Bookkeeping apply digitally too?
Yes. Books and records can in principle also be kept electronically. The procedures used must also meet the requirements for regularity, traceability and retention.
For electronic books, records and documents, the tax requirements are determined in particular by the GoBD concretised.
GoB and GoBD – what is the difference?
The Principles of proper Bookkeeping denote the overarching requirements for proper Bookkeeping.
The GoBD In contrast, administrative guidelines issued by the tax authorities flesh out these requirements, particularly regarding electronic books, records, documentation, and data access.
In short: The principles of proper accounting form the overarching framework – GoBD specify tax requirements, particularly for digital Bookkeeping.
