The GoBD (Principles for properly maintaining, keeping and storing books, records and documents in electronic form and for data access) are a collection of rules established by the Federal Ministry of Finance (BMF) to ensure proper accounting in Germany. These rules are important to make sure that all tax-relevant data is correct, complete and verifiable.

Here are some core principles and requirements you should be aware of:

Timeliness #

One important aspect of the GoBD is timeliness. Meaning that receipts should be recorded in a timely manner. Timely is usually understood as immediately after the business transaction.
It is therefore not sufficient to book all receipts at the end of the month or quarter. It is important that each transation is entered as soon as possible after it is received or completed.

Deleting transactions #

The GoBD stipulates that deleting transactions is not permitted. Instead, incorrect transactions should be reversed and entered again correctly.

Completeness #

Completeness is an essential principle of the GoBD. It requires that all business transactions and all related, tax-relevant information is fully documented.
It is essential that all receipts, invoices, contracts and other documents that have an impact on the financial situation of the company are recorded and stored.

Focusing on completeness ensures the integrity of the accounts. Omissions or missing receipts can lead to incorrect financial reports and are a violation of the GoBD. It is therefore important to have an effective document management in place and to record all relevant documents in a timely manner.

Traceability and verifiability #

Another central element of the GoBD are the requirements of traceability and verifiability. All business transactions recorded must be traceable and verifiable for third parties, especially for the tax office.

This means that the documentation of business transactions must be done in a clear, structured and coherent manner. Furthermore, links between documents and the corresponding transactions should be made clear. This can for example be achieved, through continuous receipt numbers and detailed transaction descriptions.

This requirement ensures the transparency of the accounting. Each business transaction should be able to be reconstructed on the basis of the information provided. Therefore, make sure that all your transactions and receipts are clear, precise and detailed.

Accuracy and order #

The principles for proper accounting require that all tax-related data is recorded correctly and in an orderly manner. Accuracy refers to the accuracy of the recorded information. Meaning that all bookings, transactions and records must be accurate and without error. Each transaction must be accurately reflected, including all relevant details such as date, amount, accounts and counterparties.

Order refers to the structured and systematic recording and storage of data. Accounting should be organised in such a way that information is easy to find, accessible and understandable. This includes adherence to account systems, proper classification of business transactions and systematic storage of receipts.

Unchangeability #

A cornerstone of the GoBD is the principle of immutability. This principle states that once data has been recorded, it can’t be changed. Once a transaction has been entered, it should exist permanently in this form. If it is necessary to correct errors, you shouldn’t make changes to the original transaction but cancel the original transaction and create a new correct transaction.

Unchangeability contributes to the traceability and verifiability of the accounts. It creates a permanent record of business transactions that enables inspectors to trace the exact sequence of transactions. Note that deleting transactions, creating gaps in receipt numbers or changing existing data can be considered a GoBD violation.