<\/span><\/h2>\nThe first criterion for determining whether double-entry bookkeeping is mandatory is Previous year's sales<\/strong>However, even with the same sales revenue, the standards differ depending on the industry. The threshold is 300 million won for wholesale and retail trade, agriculture, mining, and real estate sales; 150 million won for manufacturing, restaurants, and construction; and 75 million won for professional, scientific, and technical services or real estate rental.<\/p>\nIf this figure is exceeded, double-entry bookkeeping must be implemented starting the following year, but there is a point to note here. Professional business owners such as tax accountants or lawyers Exceptions to the double-entry bookkeeping obligation regardless of sales revenue<\/strong>C. This means that while you can apply for simplified bookkeeping if your sales are below the threshold during the early stages of your business, you must switch to it the moment you grow and exceed the standard.<\/p>\n\n\n\n| Industry classification<\/th>\n | Mandatory double-entry bookkeeping standards<\/th>\n<\/tr>\n<\/thead>\n |
\n\n| Wholesale and retail trade, agriculture, mining, real estate sales<\/td>\n | 300 million won or more<\/td>\n<\/tr>\n |
\n| manufacturing, restaurants, construction<\/td>\n | 150 million won or more<\/td>\n<\/tr>\n |
\n| Professional services, real estate rental<\/td>\n | 75 million won or more<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n If you do not meet the mandatory standards, you can apply for simplified bookkeeping. Although simplified bookkeeping is a much simpler format than double-entry bookkeeping, it has the advantage of allowing actual expenditures to be recognized as proof when filing.<\/p>\n <\/span>How are Simplified Bookkeeping and Double-Entry Bookkeeping Different?<\/span><\/h2>\nSimplified bookkeeping is a household accounting system that records expenses and income in chronological order, while double-entry bookkeeping is a method of recording the same transaction on both the debit and credit sides. The biggest difference in practice is Whether accounting knowledge is required<\/strong>C. Anyone can use simplified bookkeeping, but with double-entry bookkeeping, basic knowledge is required to properly classify items.<\/p>\nApplicants for simplified bookkeeping do not actually spend much time on it. It takes less than 5 minutes to record daily, and an additional 10 minutes or so to review on weekends. While it may take half a day to organize all transactions at the end of the year for comprehensive income tax filing, the task becomes much lighter for those who have consistently kept records.<\/p>\n Let's also keep in mind that filing simplified ledgers as double-entry bookkeeping brings with it a tax benefit called the bookkeeping tax credit.<\/p><\/blockquote>\n If a business eligible for simplified bookkeeping files an estimated tax return, only the expense ratio specific to the industry is recognized, even if actual expenses are substantial. In contrast, filing with full bookkeeping allows the entire actual expenditure to be recognized as an expense by submitting supporting documentation. This is why taxes can vary significantly depending on the filing method, even for businesses of the same size.<\/p>\n <\/span>Let's choose a program based on price and features.<\/span><\/h2>\nThere are various tax programs on the market, each differing in price and features. If you are a beginner MoneyPin<\/strong>It is worth considering. Basic functions are free, and you only have to pay 30,000 to 80,000 won per case when reporting. While it offers the convenience of AI automatically classifying transactions, the downside is that its judgment can be incorrect.<\/p>\nIf you want to manage the ledgers by hand and take care of the tax filing as well Easy Shop<\/strong>This is the alternative. Simplified bookkeeping costs 15,400 won per month, and double-entry bookkeeping costs 24,200 won per month; filing costs an additional 55,000 won per year. Although the UI is somewhat clunky, the functionality is solid, making it suitable for those who prefer manual verification over automation.<\/p>\nIf the business grows and you have employees and a lot of inventory eCount ERP<\/strong>You might also want to consider [this]. It costs 40,000 won per month with an initial sign-up fee of 200,000 won, but it is a fixed price regardless of the number of employees, and allows you to manage inventory and distribution all in one place. Conversely Accounting Nara<\/strong>It is specialized in automatically collecting banking and receipts, but tax filing must be done separately elsewhere.<\/p>\n
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