The categorisation of banking transactions only concerns the self-employed, but is not always compulsory. It is also an aid to better management. Here's why and how 🤓
For self-employed natural persons only
The categorisation of banking transactions by you only exists for self-employed natural persons. In a company, your accountant is responsible for your transactions. Company accounting is of a different type: it is double-entry accounting and not simplified accounting. This type of accounting is more complex.
Mandatory categorisation if revenue
Do you sell your services to private individuals? Are you in the medical or paramedical sector, or do you work as a coach, therapist, masseur, beautician, etc.? ? If so, you don't have to issue an invoice. Every amount received from a customer for which you do not issue an invoice is revenue. In this case, categorisation is compulsory to justify your income. You must keep a revenue journal ✅
The categorisation system has been designed to enable almost 100% automated management of these bank receipts.
👉🏻 Find out more about creating a receipt on BILLY.
Optional categorisation
Do you always issue an invoice for your services? Are you a consultant, lawyer, graphic designer, journalist or architect, for example, and subject to VAT? As long as you always issue a sales invoice for your services, you are under no obligation to categorise your transactions. Categorisation is optional and serves as a reminder so you don't forget anything in your accounts 🔎
1️⃣ Expenses without invoices
Some expenses do not have invoices. This is the case, for example, with bank charges, rent paid or fee retrocessions paid. You can generate an expense in the accounts using one of these categories. This is an option available to you, but it is not compulsory.
2️⃣ Invoice reconciliation
As soon as the system detects a reconciliation, it is automatically done for you. If this is not the case, you can link the transaction to an invoice. The reverse is also possible, you can link a transaction from the addition of an invoice.
💡 Thanks to this link between payment and invoice, you have a reminder so you don't forget any purchase invoices. For your sales invoices, you'll be able to track the payment status.
3️⃣ Classification of non-earnings transactions
Finally, categorisation allows you to select certain non-income and non-expense categories. This means that these are accounting transactions that have no impact on your business results.
Don't hesitate to contact us on the live-chat to find out more about categorising transactions.
See you soon 👋🏻