When you hear the phrase “procedural documentation according to GoBD” don’t you just burst into joy? You don’t have to - but as an entrepreneur you should understand what it’s all about! Read here what is important and what you need to consider.
Table of contents
What is procedural documentation according to GoBD?
In the procedural documentation according to GoBD you describe your company’s internal data processing process. All steps and documents should be verifiable, complete and unchangeable for the tax office.
Who has to prepare procedural documentation?
The procedural documentation is generally mandatory for all entrepreneurs, self-employed people, etc. If you still don’t have procedural documentation, that doesn’t necessarily have to have bad consequences. The only requirement is that your documents and receipts must be maintained in a comprehensible and clear manner. If you can ensure this, you may not need to create detailed procedural documentation.
Where can I find a sample of the procedural documentation as a template?
To create documentation, it’s best to use these two patterns:
- Sample for procedural documentation from the Working Group for Economic Administration e. v.
- Sample for the replacement scanning from the Federal Chamber of Tax Advisors
Everyone knows it, nobody knows what it means: procedural documentation according to GoBD. As an entrepreneur, you naturally want to focus primarily on the further development and growth of your company - and not spend time on bureaucratic fine-tuning. Since the correct procedural documentation is important for you as an entrepreneur and should be taken into account, we will briefly, concisely and clearly explain everything you need to know about the GoBD and procedural documentation.
What is the GoBD?
GoBD means: “Principles for the proper management and storage of books, records and documents in electronic form as well as for data access” and is a letter from Federal Ministry of Finance .
The GoBD essentially sets out guidelines for keeping a company’s accounting records. This describes in detail which requirements you must adhere to when filing and documenting your receipts, invoices, etc. so that they are recognized by the tax office during an audit.
The GoBD applies to both your physical and digital receipts. According to the GoBD, your accounting must at all times:
- verifiable
- complete
- correct
- punctual
- ordered and
- unchanged
What is procedural documentation according to GoBD?
Part of the GoBD is the procedural documentation. This refers to the data processing process within your accounting. As described above, all steps and documents in this process should be verifiable, complete and unchangeable. Essentially, your process documentation should answer these questions:
- What purpose does your company serve?
- What product or service do you offer?
- How are the tasks distributed within your company?
- What processes do you have in your company?
- How do you determine your profit?
- How are incoming invoices recorded?
What does procedural documentation have to contain?
The best way to answer these questions is to proceed step by step. Normally, procedural documentation according to GoBD contains these sections:
-
-
- general description - User documentation
- System documentation
- Operational documentation
- Internal control system
-
general description
In this section of the process documentation, you will briefly and concisely describe what your company specifically offers and how you structure it internally. Of particular interest are the financial and tax-relevant processes that the tax office might be interested in during an audit.
User documentation
The user documentation goes even deeper into the processes. All internal structures that are relevant for accounting are presented in detail here. The processes for data collection and, above all, the guidelines for storing this data are particularly important here.
System documentation
Technical system documentation is then drawn up: This documents which hardware, software and cloud solutions you use. You should also explain in detail how you will secure your data and protect it from unauthorized access.
The operational documentation
Then it comes to the operational documentation. Here you should describe the procedures that will ensure that your IT functions stably and securely. Access rights and instructions for operational security also belong in this part of the procedural documentation.
Important: Also describe here what measures you will take if nothing works anymore due to a technical error!
Internal control system
Last but not least, please describe what controls you use to ensure that your processes always run smoothly. So show which sample checks take place when and which employee is responsible for them and at what intervals.
Does every entrepreneur actually have to prepare such detailed procedural documentation?
Given this effort, many entrepreneurs rightly ask themselves whether they actually have to implement this detailed procedural documentation. There is a clear answer to this: documentation of the process is mandatory for all self-employed people. For large corporations, medium-sized companies and individual entrepreneurs. Of course, only private individuals do not have to prepare such documentation.
If you don’t have any procedural documentation, you may still be on the safe side. As long as the accounting is comprehensible and the content is correct, auditors will generally not reject coherent accounting. Even small businesses and self-employed people who still do their bookkeeping on paper may get away without the documentation. The only requirement is that the handling of documents and receipts is comprehensible, clear and correct.
Sample procedural documentation {#Muster für Verfahrensdokumentation}
The GoBD does not specify how extensive the documentation must be. A pattern will help you complete all points and not forget anything. The Working Group for Economic Administration e. V., for example, in collaboration with the German Association of Tax Consultants Sample for procedural documentation created. This template contains all eventualities and is therefore extensive. Also for thatreplacing scanning there is a pattern , which the Federal Chamber of Tax Advisors developed together with the German Association of Tax Advisors.
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