Organized Accounting — Contabilidade Organizada

Organized accounting (contabilidade organizada) is the accounting method where self-employed individuals and sole traders record actual business income and expenses, rather than applying fixed coefficients as in the simplified regime. It is mandatory for Cat. B taxpayers with annual gross income above €200,000. Under organized accounting, the taxable base is calculated as actual revenue minus all documented, legitimate business expenses — potentially resulting in a lower taxable income than the simplified regime, particularly for high-expense businesses. Organized accounting requires a certified accountant (Técnico Oficial de Contas, TOC) to sign off on the accounts, adding a mandatory ongoing cost. It is generally advantageous when actual expenses exceed the implicit cost assumed by the simplified regime coefficients.