{"id":4415,"date":"2026-04-15T11:52:17","date_gmt":"2026-04-15T11:52:17","guid":{"rendered":"https:\/\/www.brasser-accounting.de\/?post_type=glossar&p=4415"},"modified":"2026-09-07T09:40:43","modified_gmt":"2026-09-07T09:40:43","slug":"your","status":"publish","type":"glossar","link":"https:\/\/www.brasser-accounting.de\/en\/glossar\/euer\/","title":{"rendered":"E\u00dcR"},"content":{"rendered":"
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The E\u00dcR<\/strong> \u2013 short for Cash-basis income statement<\/strong> \u2013 is a tax method for determining profit. In this method, profit is fundamentally calculated as the excess of business income over business expenses.<\/p>\n <\/div>\n<\/section>\n\n

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What is a Cash-basis income statement (CASH-BASIS INCOME STATEMENT)?<\/h2>\n\n

Under CASH-BASIS INCOME STATEMENT, the operating income and operating expenses of a profit determination period are compared. If operating income exceeds operating expenses, a profit generally results.<\/p>\n\n

The CASH-BASIS INCOME STATEMENT is therefore to be distinguished from profit determination by comparison of company assets and Bilanz.<\/p>\n<\/section>\n\n

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What does the cash-basis accounting principle mean?<\/h2>\n\n

For the chronological allocation of income and expenses, CASH-BASIS INCOME STATEMENT is fundamentally determined by when an amount of income is actually received or an expense is paid.<\/p>\n\n

There are statutory exceptions to this basic principle. Therefore, CASH-BASIS INCOME STATEMENT cannot be equated with a simple examination of all account movements in every individual case.<\/p>\n<\/section>\n\n

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Who can use a CASH-BASIS INCOME STATEMENT?<\/h2>\n\n

Under Section 4(3) of the Income Tax Act (EStG), taxpayers can determine their profit using a CASH-BASIS INCOME STATEMENT if they are not required by law to keep books and regularly prepare financial statements, and do not choose to do so voluntarily.<\/p>\n\n

Whether the requirements are met in an individual case depends on the applicable commercial and tax law regulations.<\/p>\n<\/section>\n\n

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CASH-BASIS INCOME STATEMENT and double Bookkeeping \u2013 what is the difference?<\/h2>\n\n

When the double-entry bookkeeping<\/a> business transactions are systematically recorded in accounts on the debit and credit sides. Among other things, it forms the basis for Balance sheet and profit and loss statement.<\/p>\n\n

In contrast, for CASH-BASIS INCOME STATEMENT, taxable profit is generally determined by comparing operating income with operating expenses. An Balance sheet is not required for this method of profit determination.<\/p>\n\n

The CASH-BASIS INCOME STATEMENT is therefore also from the Accounting<\/a> to distinguish.<\/p>\n<\/section>\n\n

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What records are required for a CASH-BASIS INCOME STATEMENT?<\/h2>\n\n

Even with a Cash-basis income statement, the income and expenses relevant to profit determination must be recorded in a comprehensible manner and the associated documents must be kept in accordance with the applicable regulations.<\/p>\n\n

The CASH-BASIS INCOME STATEMENT therefore does not mean that tax recording or documentation requirements can be waived.<\/p>\n<\/section>\n\n

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Related terms<\/h2>\n\n