EÜR stands for income-surplus calculation. It is a simplified form of profit determination where operating income and operating expenses are compared.
Basics
In the EÜR, profit is determined as the surplus of business income over business expenses. The actual inflow and outflow of payments is generally decisive.
In contrast to double-entry bookkeeping no accounting is done.
Legal framework
The revenue and expenditure account is regulated by tax law. It can be used by businesses that are not legally required to keep double-entry bookkeeping.
Systematic classification
The EÜR is a form of profit calculation within the scope of tax obligations. It is connected with:
- Financial accounting
- Payments
- Annual financial statements (for accounting companies)
However, it does not replace the ongoing documentation of business transactions.
Requirements
- Full recording of all operating income
- Documentation of all operating expenses
- Understandable evidence trail
Typical procedure
- Recording of all incoming payments
- Recording of all outgoing payments
- Comparison of income and expenditure
- Determination of taxable profit
Practical relevance
The EÜR is particularly relevant for small businesses and sole traders who are not obliged to prepare a balance sheet. Proper bookkeeping is still required, however.
Typical sources of error
- Unrecorded payment transactions
- Incomplete documentation
- Confusion of private and business transactions
FAQ
What is the EÜR?
A simplified determination of profit by offsetting income and expenses.
Is it the same as double-entry bookkeeping?
No, no balance sheet is prepared for the EÜR.
What is it based on?
On the actual operating income and expenses received and paid.
Conclusion
The EÜR is a legally prescribed simplified form of profit determination. It is based on proper documentation of cash flows and must be distinguished from double-entry bookkeeping.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
