Anyone who conducts business through a sole proprietorship can basically choose between two different accounting methods.
One is cash-based and the other is slightly harder and is the most common method is faktureringsmetoden.
Cash method involves simply outstanding incoming and outgoing invoices are not due to recorded continuously throughout the year. Fakuror shall not be booked in due- and general ledger accounting until they have been paid (supplier invoices) or the payment for (kundfakturor) those obtained.
Invoices must be kept in good order and in accordance with established rules. Paid and unpaid bills should be stored separately, Sorted by date, numerical or alphabetical order so as to have an overview of them.
At year-end, all the unpaid invoices listed and recorded.
Only individual traders whose annual gross turnover is more than three million can use the cash method in its accounting. Utantag can be made for individual traders whose turnover is greater than three million if it is in motion only occurs a few invoices totaling not amount to substantial sums.
Anyone who uses kontatnmetoden in their accounts must also apply to the closing method the VAT accounts