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It really depends on your situation - how much revenue are you making roughly per year? Once you hit a certain turnover (usually around 600,000 euros), you're legally required to do full accounting anyway. But even below that, switching often makes sense sooner if you have multiple employees, manage inventory, or just need a better overview of your financial situation. Best thing is to talk to your tax advisor about it - they know your exact numbers.
MelanieFischer asker
I'm currently still well below €600,000, but I already have two employees. Thanks for the tip about the tax advisor!
People often forget that you don't have to switch at 600,000 euros - already at 50,000 euros profit or 500,000 euros turnover, the tax office and creditors can demand proper bookkeeping, even if you're not strictly required to file a balance sheet 😅 Before that threshold, switching to double-entry bookkeeping makes more sense if your business gets more complex (multiple accounts, regular transactions with other companies, loans), because the simple profit and loss statement eventually just becomes too messy to manage. Your best bet is to ask a tax advisor - they can help you earlier on without you having to switch everything over right away.
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