If your company is a sole proprietorship, you can choose the most appropriate accounting scheme.
An accounting scheme can be described as a railway track, on which the administrative events of your business run.
E.g.: Significant administrative events may be the purchase of equipment or the crediting of sum to the company's bank account. It may also be the payment of a tax or the reception of a governmental grant.
These events must be registered following specific rules in an orderly and systematic set of books: this is referred to as accounting.
Based on the steps you decide to take, you may also be required to show third parties your accounting ledgers or part of them: your bank, prior to providing a loan, may want to know the volume of your business and tax authorities may ask you to show your books during their audits.
Italian legislation provides for a number of different tax schemes. Namely:
- the simplified accounting scheme;
- the ordinary accounting scheme;
- the scheme for new business initiatives;
- the minimum taxpayer scheme;
- the flat-rate scheme.
The simplified scheme:
- can always be used by a sole proprietorship;
- is linked to the company's turnover;
- is not difficult in terms of accounting and bookkeeping.
For further information on this particular tax scheme, please refer to the Guide to the simplified accounting scheme.