In 2014, Germany's Ministry of Finance (BMF) first published standards for the GoBD. However, the advancing digitalization and the need for identifying tax or customs-relevant systems, as well as keeping them GoBD-compliant required the revision of the previous standards. BMF went on to release the latest version on November 28th, 2019 that came into effect on January 1st, 2020.
Fulfilling the current GoBD standards allow businesses, and hospitality companies in particular, to make their tax process not only paperless and digital but also avoid trouble in the course of tax audits.
Based on the requirements, German companies should provide tax authorities with documents to prove their GoBD compliance and show transparency on the digitalization processes.
With that said, preparing GoBD documentation might be hard if you are not familiar enough with the compliance requirements of the tax authorities. But this is no longer a problem. The reporting module is an integral part of HotelFriend Property Management Software to ensure all hotel reports are complete, correct, and compliant. Below we’ll explore in more detail what GoBD reporting is and how to adhere to these requirements easily with our system.
What is GoBD?
GoBD stands for the principles for the proper management and storage of books, records, and documents in electronic form as well as for quick data access. These principles deal with electronic accounting and tax-relevant documents. German businesses that do not fulfill these tax accounting standards risk receiving a fine for non-compliance by the authorities.
With the right reporting tools, hoteliers can initiate the data export at any time, generate a report, and provide all business transactions for any period of time to prove that their accounting is compliant.
5 key benefits of GoBD compliance
The correct GoBD report is not just an obligation. It can also become the driver for making the hotel business more efficient and competitive. The GoBD compliance comes with a number of advantages, allowing hoteliers to:
1. Provide a tax auditor with a complete list of all business transactions
so that they can audit the transactions within a reasonable amount of time;
2. Keep all records and tax-relevant data immutable;
3. Make the systematic entry in a clear and comprehensive format;
4. Turn a hotel into a paperless office;
5. Keep archiving legally compliant and store sensitive content securely.
As we see it, the GoBD stipulates that the electronic documentation process becomes complete, comprehensible, systematic, easily verifiable and accessible, without gaps for all transactions so that the auditors can examine the documentation, understand, and review records at any time.
HotelFriend supports hoteliers with GoBD reports to automate the communication with tax auditors and authorities to the maximum.
How to generate a GoBD Report in the HotelFriend system
In the HotelFriend system, hoteliers can easily generate the GoBD Report in 5 steps given below:
1. In the menu on the left, click on the Reports module and go to the GoBD Report tab.
2. In the Report Type field, select either “Guests Invoices” or “Payments” type.
3. In the Date field in the calendar, select the period of interest.
4. Click the Create Report button.
5. The system will display an “Export scheduled” notification and the report status will show as “In progress”. A hotelier can now switch to fulfilling other working tasks. As soon as the report is generated, the system will display the notification “FIBU Report Completed” for all employees.
Adhering to the GoBD standards brings benefits and gives hospitality businesses the competitive differentiation needed for future success in the digital world, while HotelFriend accompanies hoteliers in the creation of all essential reports and documentation simplifying their GoBD compliance.