The Einnahmenüberschussrechnung (EÜR) is a simplified method of profit calculation commonly used by small businesses and freelancers in Germany. It calculates profit based on actual cash inflows and outflows, rather than accruals.
Unlike the double-entry bookkeeping system, the EÜR only considers income and expenses that have been paid, regardless of when the service was delivered or the invoice was issued. This method is often referred to as cash-based accounting.
Who is required to submit an EÜR?
The following businesses or legal forms can submit an EÜR instead of a full balance sheet
- Freelancers (e.g., writers, consultants, designers)
- Businesses that earn below a certain threshold can use EÜR. This threshold is <code-snippet id=99 double-entry-regulation>
Businesses that are not registered under the Commercial Register (Handelsregister) (e.g., sole proprietorships, OHG, KG, etc.)
