I've a quick question related to accounting as french "auto-entrepreneur" and upwork invoices.
I'm not yet an auto-entrepreneur but I plan to incorporate as auto-entrepreneur before the end of the year.
The more I read threads, the more I get confused about how to report our earning! This is what I've read:
How are you dealing with that?
Please note my question is only on the accounting matter. VAT, intra-community vat and the special case of the french AE status questions are pretty clear for me.
Thanks for sharing your experience!
I'm not in France, so I can't help you chose which of the three methods is best for your situation, but I do create my own invoices for my clients. I "get around" the difference between the amount the client is billed and the amount that is transferred to my local bank account by issuing my invoices for the amount the client is billed. I then register the service fee as a business expense. Upwork issues adequate invoices to freelancers for the service fee that we pay.
If it helps, I consider Upwork's payment system to be a US dollar "bank" account in my name. The total amount the client pays is registered as earnings into my "foriegn currency account" and the service fee is registered as a payment from that account. When I withdraw money from Upwork I register it as a transfer between two bank accounts.
It's #3. And as for accounting paperwork, I just keep track of Upwork's payments.
Anyways, under this status you're not subject to the same accounting rules as other business, you are only required to keep a record of your earnings.
You are, however, supposed to issue a bill to your clients, but since on Upwork you know nuts about them, you are technically unable to do this.
Thanks Terry and Rene for your answers!
Rene, I understand that UpWork does not provide sufficient information to invoice the client. But, please, how tax service reacts if you record an income without invoice just arguing that "you are technically unable to do it"?
Won't you be in trouble here?
I don't live in France, but if I were making any money from Upwork, I'd actually put Upwork down as the client because, really, it's Upwork who the clients are paying and then a percentage of that is being paid to you by Upwork, not the client.
That's, personally, how I see it from a technical standpoint.
If Upwork don't provide incoices when you're paid by a client (I wouldn't know, as I've not got any work on here yet), then I'd simply create an invoice and mark it as paid once your Upwork earnings land in your PayPal or bank account, or whatever other payment method you're using.
That's jsut my two cents, as the Americans say.