The Procedural Documentation in Practice: Tips and Guidelines for Companies

Background

Digitization has significantly changed corporate accounting. With the increasing automation of processes, there are significant savings potentials. The German tax authorities introduced new regulations for electronic accounting in 2014 with the "Principles for the Proper Management and Storage of Books, Records, and Documents in Electronic Form as well as Data Access" (GoBD). These include storage obligations, electronic accounting, and responsibilities.

In 2019, the GoBD regulations from 2014 were selectively updated by the Federal Ministry of Finance and adapted to new technical developments. It should be noted that all taxpayers who prepare balance sheets or income surplus calculations and use IT-supported processes must comply with the GoBD, regardless of company size.

Approaching Procedural Documentation

Basics

The procedural documentation must meet the principles of the GoBD such as traceability, completeness, correct recording, order, and immutability. All procedures, systems, and programs must be detailed to ensure traceability. Close collaboration between accounting, the tax department, and IT specialists is crucial.

Essential Components

General Description

The general description should include the company, the economic sector, the profit determination method, and any special features. A flowchart of the main processes of electronic accounting is recommended. Additionally, the locations and frequency of document digitization as well as external service providers and their contracts must be presented.

User Documentation

The technical processes of the IT systems must be described in detail. It is important to illustrate the data path, rules for data exchange, and interfaces between programs. The authorization concept and system functions are also relevant components.

Technical System Documentation

The hardware and software used must be described in detail. It is crucial to understand how the various components interact. Particularly for cloud systems, the server location must be specified.

Operational Documentation

The usage and security processes of the IT systems must be precisely described, including the data backup concept and authorizations. It is important to also present the emergency plan and the technical authorization concept.

Internal Control System

The ICS must include access rules, separation of functions, data capture controls, as well as plausibility and completeness checks. Regular control and documentation of these processes are required.

External Form

The procedural documentation should be structured and clearly organized. A master file and an appendix for secondary information have proven useful to clearly separate the main processes and additional information.

Electronic Cash Registers and Procedural Documentation

Since 2020, stricter requirements apply to electronic cash registers, including the obligation for a certified technical security device. From 2025, there will be a reporting obligation for electronic cash systems to the tax authorities.

E-Invoice from 2025

From 2025, entrepreneurs must be able to receive and process e-invoices. The e-invoice must meet certain standards and allows for electronic processing. These changes also require an adjustment of corporate systems and are considered in the procedural documentation.

Conclusion

Carefully prepared procedural documentation is not only an obligation but also an opportunity to optimize business processes and sustainably increase company profits. Failure to comply may result in sanctions and the risk of accounting rejection. Therefore, current and structured procedural documentation is essential for companies.

For further questions and individual advice, experts are available to ensure that all requirements for procedural documentation are met.