Common accounting errors in self-employed and how to avoid them: a practical guide from Tecem Abogados
Accounting is one of the most critical areas for any freelancer. Poor accounting management can lead to penalties, financial losses and legal problems. At Tecem Abogados, we understand the importance of accurate accounting and offer specialized advice to help you avoid the most common accounting errors.
Failure to issue invoices correctly
One of the most frequent accounting errors among the self-employed is the incorrect issuance of invoices. According to Royal Decree 1619/2012, all invoices must include mandatory elements such as number, date, issuer and receiver data, description of the service or product, taxable base, VAT rate applied and VAT quota. Issuing invoices without complying with these requirements may result in penalties and tax problems.
How to avoid it: Use approved invoicing programs or pre-designed templates that comply with legal requirements. Be sure to issue invoices for all services rendered, even minor ones.
Mixing personal and professional finances
Another common accounting mistake is not separating personal and professional finances. This practice makes financial control difficult and complicates tax filing. In addition, it can make it difficult to justify to a possible tax inspection.
How to avoid it: Open a bank account exclusively for your professional activity. Make all professional transactions from this account and keep a detailed record of all expenses, filing the corresponding receipts.
Failure to keep up-to-date records of income and expenses.
Keeping incomplete records of income and expenses is another common failure that can lead to discrepancies with the tax authorities. According to Article 68 of the Personal Income Tax Regulations (Royal Decree 439/2007), the self-employed must record all economic movements, including cash receipts.
How to avoid it: Establish a meticulous record-keeping system that includes sales invoices, expense invoices, receipts and any other relevant documentation. Consider using accounting software that simplifies this task.
4. Not taking advantage of available tax deductions
Many self-employed individuals do not take full advantage of the tax deductions available to them. Forgetting to record all deductible expenses or deducting unrelated expenses can be a problem in the face of an inspection.
How to avoid it: Keep a detailed record of your expenses and consult with experts to understand which expenses are deductible and how to properly document them.
5. Late filing of tax returns
Failure to meet tax deadlines may result in unnecessary fines and surcharges. Delays in filing quarterly and annual returns are common errors that can result in penalties.
How to avoid it: Set reminders and use tax management tools that alert you to deadlines. Consult regularly with an accountant to make proactive rather than reactive adjustments.
6. Using non-certified accounting software
The use of uncertified or prohibited software can lead to significant penalties. The Congressional Finance Committee has approved a bill to prevent and combat tax fraud in Spain, imposing fines of up to €150,000 for concealing income and failing to comply with technical specifications.
How to avoid it: Make sure you use certified and up-to-date accounting software that complies with the specifications required by the applicable regulations.
7. Failure to plan taxes throughout the year
Many self-employed individuals think about taxes only as the filing date approaches, which can lead to hasty and possibly disadvantageous financial decisions.
How to avoid it: Establish a system for calculating and saving a portion of your income for taxes each pay period. Consult regularly with an accountant to make proactive rather than reactive adjustments.
8. Failure to keep proof of income and expenses
Failure to keep supporting documents for income and expenses is a common mistake that can make it difficult to substantiate income and expenses.
e operations in the event of an inspection.
How to avoid it: Keep all receipts and expenses receipts, even those of small amounts. Use digital invoice and receipt management systems that can automate reminders and payments, improving cash flow management.
9. Failure to perform regular bank reconciliation
Regular bank reconciliation is essential to detect errors or discrepancies in time. Neglecting this task can lead to accounting and tax problems.
How to avoid it: Schedule monthly bank reconciliations and use tools that allow easy comparison between accounting records and bank statements.
10. Failure to seek professional advice
Failure to seek professional advice can lead to accounting and tax errors that could have been avoided with the help of experts.
How to avoid it: Consult with professionals such as Tecem Abogados to obtain personalized advice and ensure that your accounting complies with all legal and tax obligations.
Tecem Abogados, your accounting security
Avoiding these common accounting mistakes is essential for the financial and legal health of your self-employed business. At Tecem Abogados, we offer specialized advice to help you maintain accurate accounting and comply with all your tax obligations, relying only on official sources such as the BOE. Don’t wait for problems to arise; contact us and secure the legal and accounting support you deserve.