What is the SKR 42 special chart of accounts?

The special account system SKR 42 is a special account system developed for non-profit organisations, associations, foundations and similar non-profit organisations in Germany. It will come into force on 1 January 2025 and will replace the previous SKR 49. The SKR 42 was developed to better take into account the special accounting requirements of these organisations, while at the same time making the legal and tax requirements simpler and more transparent.

Important features of the SKR 42:

1. Special focus on non-profit organisations:
   The SKR 42 is designed to optimally map the accounting needs of non-profit organisations. In doing so, both ideational activities and commercial business enterprises and special-purpose entities are clearly separated from one another. This separation is particularly important for proving tax-related non-profit status and for designing the accounting in accordance with the requirements of the tax office.
2. Account classes of the SKR 42:
   The structure of the SKR 42 follows the principle of double-entry bookkeeping and is divided into the following main groups:

• Account class 0: fixed assets
• Account class 1: current assets
• Account class 2: liabilities
• Account class 3: incoming goods and stock
• Account class 4: income from commercial and special-purpose operations
• Account class 5: Expenses for economic business operations and special-purpose operations
• Account class 6: Personnel expenses
• Account class 7: Income and expenses from the non-material area
• Account class 8: Financial income and expenses
• Account class 9: Closing entries and period cut-offs This clear structure enables a clean separation between the different areas of activity, which is particularly essential for non-profit organisations in order to correctly present the tax-privileged activities.

1. Separation of areas of activity:
   One of the most important requirements for non-profit organisations is the separation of activities. The SKR 42 ensures that income and expenses from different areas (such as the ideational area, asset management, purpose operations and economic business operations) can be clearly assigned. This is particularly important for proving non-profit status.
2. Improved clarity and flexibility:
   SKR 42 offers improved clarity over its predecessor, SKR 49. The account structure is better suited to the current requirements of the non-profit sector. There is more flexibility in the use of accounts, which meets the specific needs of individual organisations.
3. Adaptation to legal and tax requirements:
   SKR 42 was developed in close collaboration with tax advisors and the tax authorities to ensure that the requirements of the non-profit audit and tax reporting are fully met. This means simplified handling when preparing annual financial statements and tax returns.
4. Digital transformation and automation:
   SKR 42 is also designed for use in modern, digital accounting systems. Many accounting programmes offer automated functions that are aligned with the structure of SKR 42. This makes digital accounting and report generation much easier.

Advantages of SKR 42:

• Simplification of accounting: The clear account structure and the greater separation of the areas of activity make accounting easier and more transparent for non-profit organisations.
• Legal certainty: The SKR 42 is designed to meet current tax and legal requirements. This makes it easier to prove non-profit status and to provide the necessary evidence to tax authorities.
• Efficiency and time savings: thanks to the clearer structure and support from modern accounting software, organisations can save time and increase efficiency in their financial administration.

Conclusion:

the SKR 42 offers non-profit organisations a modern accounting solution that is adapted to current requirements. By replacing the SKR 49, it creates more transparency, clarity and flexibility, which is particularly important for proving charitable status and for tax reporting. Organisations that have previously used the SKR 49 should prepare in good time for the changeover on 1 January 2025 in order to benefit from the advantages of the new accounting framework.