Is accounting mandatory?

In simple terms, accounting means that records must be kept of the:

• income;

• expenses;

• assets

• and liabilities of a business.
  
  

Financial statements are prepared for the company based on the accounting records. Accounting records also include the obligation to retain accounting records for at least the period required by the Accounting Act.

In principle, all companies, associations, foundations and natural persons engaged in business activities, such as sole proprietors, are subject to accounting their records.

There are though exceptions: the accounting record-keeping obligation does not apply to natural persons engaged in farming or fishing, for example. In practice, they must still make notes of their activities for the tax authorities.