“EÜR or balance sheet” sounds like a formality, but it directly shapes how you record things day to day. Which form applies to you depends on statutory criteria — a tax question that belongs with a licensed tax adviser.
The cash-basis calculation (EÜR)
The EÜR follows the cash principle: what counts is when money actually moves. An invoice written in December but paid in January generally takes effect in January.
- Business income set against business expenses
- Oriented to payment dates
- Comparatively lean day-to-day bookkeeping
The balance sheet
Balance sheet accounting follows accrual logic. A transaction is recorded when it arises economically, regardless of when it is paid.
- Assets set against liabilities
- Receivables and payables are tracked
- More ongoing effort, but more detailed insight
What this means in practice
With the EÜR, daily attention sits largely on the bank account. With a balance sheet, open items are added: who owes whom what, and since when? That requires a maintained receivables and payables overview.
In both cases the rule is the same: the cleaner the ongoing records, the calmer the year-end. This article explains general concepts and is not tax advice.
This article provides general information and does not replace individual tax or legal advice.
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