Company Accounting Records: Complete Legal Obligations

Introduction

The maintenance of accounting records constitutes an indispensable pillar of business management in France. Whether it is a micro-enterprise, SME, small business or sole trader, each structure is subject to strict accounting obligations defined by the Commercial Code, the General Accounting Plan (PCG) and the General Tax Code. These obligations are not limited to simple accounting entry: they encompass the preservation of supporting documents, the maintenance of mandatory registers, the issuance of compliant invoices and the production of annual financial statements. This comprehensive guide details all applicable rules, thresholds to be aware of and best practices for legally securing your activity whilst optimising your financial management.

1. Mandatory accounting registers

Article L. 123-12 of the Commercial Code requires every trader to maintain three fundamental registers: the journal, the general ledger and the inventory book (the latter abolished for financial years opened since 2016, but the inventory document remains mandatory). The journal chronologically records all transactions affecting the company's assets, whilst the general ledger reproduces these entries broken down by account.

For micro-entrepreneurs, the regime is simplified: only a revenue book is required, supplemented by a purchases register for merchandise sales activities (article 50-0 of the CGI). These registers must be maintained without blank spaces or alterations, and may now be digitised in accordance with the Order of 22 March 2017, provided that the authenticity, integrity and readability of the data are guaranteed throughout the entire legal retention period.

Negligence in maintaining these registers may result in rejection of accounts by the tax authorities, with serious consequences: arbitrary assessment, surcharges and penalties.

2. Invoices and supporting documents: compliance and retention

Every invoice issued must comply with the mandatory information listed in article 242 nonies A of Annex II of the CGI and article L. 441-9 of the Commercial Code: identification of the parties, SIREN number, intra-community VAT number, precise description of goods or services, VAT rate and amount, payment terms and late payment penalties.

Since the Sapin II Act (Act No. 2016-1691) and as part of the e-invoicing reform planned by Ordinance No. 2021-1190, French companies will progressively switch to mandatory e-invoicing via the Chorus Pro platform or partner digitalisation platforms (PDP) between 2026 and 2027.

Supporting documents (invoices, contracts, bank statements, delivery notes) must be retained for 10 years from the end of the financial year (article L. 123-22 of the Commercial Code), and 6 years for tax documents (article L. 102 B of the LPF). A missing supporting document may invalidate an accounting entry and result in the loss of deductibility of an expense.

3. Accounting entry and applicable standards

Accounting entries must comply with the General Accounting Plan (ANC Regulation No. 2014-03) which defines the chart of accounts and valuation rules. SMEs exceeding two of the following three thresholds (€4 million balance sheet, €8 million turnover, 50 employees) must produce complete annual accounts: balance sheet, income statement and notes.

Groups listed or making a public offering apply IAS/IFRS standards in accordance with EC Regulation No. 1606/2002. Whilst SMEs/small businesses are not directly concerned, those operating with international partners or seeking funding must familiarise themselves with them.

Entry must be carried out in accordance with the double-entry principle, with a reliable audit trail (article L. 13-0 C of the LPF). The accounting software used must comply with the FEC format (Accounting Entries File) required in the event of a tax audit.

4. Specific obligations depending on status

Micro-enterprises benefit from ultra-simplified accounting but must invoice with the statement "VAT not applicable, art. 293 B of the CGI" below the threshold for exemption. Sole traders under the actual regime must maintain complete business accounts. SMEs in corporate form (SARL, SAS) must also file their annual accounts with the commercial court registry within one month of their approval (article L. 232-23 of the Commercial Code).