Cash-basis accounting (EÜR)

The EÜR (Einnahmen-Überschuss-Rechnung, cash-basis income statement) is the simplest way to calculate your business profit in Germany: income − expenses = profit (or loss).

Who may use the EÜR?

• Freelancers (always, regardless of turnover)
• Traders with up to €800,000 turnover OR €80,000 profit
• Small businesses (under €22,000 turnover)

How does it work?

• Income: list all incoming payments (invoices, commissions, etc.)
• Expenses: list all business expenses (materials, office, software, phone, travel costs, etc.)
• Difference: that's your taxable profit

Advantages over balance-sheet accounting:

✅ Much simpler (no double-entry bookkeeping)
✅ Cash principle (only what comes in/goes out of the account counts)
✅ Often doable with a simple Excel sheet or app