Accounting documentation for an individual entrepreneur. Accounting for individual entrepreneurs: features of accounting in individual entrepreneurs? Accounting documents for individual entrepreneurs on usn
When developing your business, you should think in advance about accounting. Such an attitude towards activity from the very beginning will allow you to closely monitor the progress of the new enterprise and catch the moment when emergency intervention is required. The process of turning a business from profitable to unprofitable often goes unnoticed. Individual entrepreneur accounting for beginners will help you understand what is happening in a timely manner. Acquiring basic knowledge and skills helps improve the quality of work and, accordingly, profits.
Proper record keeping is of great importance for successful business planning. An individual entrepreneur must have a clear idea of his actual income and expenses. His responsibilities include making mandatory tax payments, the frequency of which is fixed. For this reason, continuous monitoring of activities is necessary to prevent the imposition of fines.
Today, there are a large number of specialized programs that greatly facilitate bookkeeping for individual entrepreneurs.
You can choose either a paid or free “assistant” who will have a positive impact on your activities. Therefore, it is enough to master the program and have basic knowledge of the basic accounting rules. Hiring a highly qualified specialist at the beginning of your business is not always justified from a financial point of view, and even if you wish, it is quite possible to cope on your own.
All about the procedure for maintaining financial statements for individual entrepreneurs:
Advantages of self-accounting
An undeniable advantage is control of your own business. Regulating all movements of funds helps to form a clear picture of ongoing activities. In this case, adjustments will be carried out in a timely and effective manner, negative aspects will be minimized, which will lead to a reduction in real or possible losses. The specificity of business lies in constant changes, which are tracked only in the process of regular monitoring of indicators and their analysis.
Behind the external well-being of ongoing activities, quite serious problems that require urgent elimination may be hidden. An in-depth study of documents and reports will help identify weaknesses and quickly take action. Among the additional advantages of direct participation in the “life” of your own business are:
- increasing efficiency;
- proper distribution of financial resources;
- tracking the results of actions taken.
If you still want to entrust the entire process to an inexpensive specialist, you should think about the possible consequences. Savings may negatively affect the quality of services provided. All mistakes made will have an impact on your activities. In accordance with current legislation, all responsibility for incorrect reporting falls on the entrepreneur. As a result, claims from the tax inspectorate will be directed at you, as well as fines for each violation. Therefore, there are two options: figure it out yourself or hire a highly qualified specialist.
Important points for successful reporting
In addition to the obligation to take tests periodically, one must understand the need to study tax and management accounting. Both types will help to establish the successful operation of the enterprise. Management accounting is aimed at optimizing and increasing the efficiency of individual entrepreneurs’ affairs, and tax accounting is aimed at correct interaction with the tax inspectorate. Understanding the specifics of the work and nuances will improve the condition of the business and increase its profitability.
To conduct tax accounting competently, it is not necessary to study all existing laws and try to master the profession of an accountant in a minimum period of time. It is enough to thoroughly understand the applicable taxation system, the frequency of reporting and the rules for its maintenance, as well as have an idea of the main changes in legislation affecting your activities. This will allow you to keep your business under control and always be aware of its real state.
Online accounting
The most common form of accounting in the last few years has been online accounting for individual entrepreneurs. Specialized services are easily accessible and do not cause any particular difficulties in mastering. In addition, there is a fairly impressive list of advantages of “virtual” accounting.
- No connection to a specific place
All data when maintaining online accounting is stored on servers and can be accessed from any computer, phone or tablet with Internet access. Moreover, after the usual authorization procedure, not only viewing, but also editing or creating new documents and reports is available. An entrepreneur has the opportunity to work from anywhere without having to carry a large amount of documentation with him.
- All document forms and counting processes are standardized.
Changes are often made to current standards or the form of a form is completely updated. Electronic accounting removes the obligation to monitor such innovations. The entrepreneur always has at his disposal only up-to-date forms that meet the current standards. In addition, it is possible to set up automatic notifications, and the problem of missed reporting will disappear by itself.
- No need to download software or applications
Electronic accounting works on the “capacity” of servers without using the disk space of a computer, laptop or other devices. There is no need to download third-party programs or applications.
- Data storage security
All information is stored in the so-called “cloud” storage, which ensures its safety. If your computer fails, you can access data from another device. By storing all documentation the old fashioned way on a PC without backup, an entrepreneur runs the risk of losing it without the slightest possibility of recovery. Concerns about information theft from servers are unfoundedly exaggerated. Such a danger, of course, exists, but the encryption technologies used make it possible to reliably protect data. But hacking of accounts is quite real, but it happens only through the fault of the owners themselves. Negligent attitude towards the safety of personal data (password and login) allows third parties to gain access to your account.
- Noticeable savings compared to using conventional programs
Installing licensed programs for accounting is, to a certain extent, a costly undertaking. Online services are easier to maintain, as they do not require additional technical support and have attractive prices for use by individual entrepreneurs.
- Simplicity and accessibility
Services allow you to easily create the necessary forms and prepare reports even for an entrepreneur without special education. An intuitive interface and plenty of tips help you master the basic principles of operation in a short time. In a few days, you can understand all the features and start using the service to the maximum.
There are not many disadvantages to online accounting. These include having a constant Internet connection (without this, access and work with documents is impossible). Another disadvantage is the lack of fine personalized settings. Most services can be adjusted according to the form of business. But they no longer allow us to reflect it in full. For this reason, before making your final choice, carefully review the capabilities of the service.
Everything a new entrepreneur needs to know
First of all, it is necessary to recall the responsibility of the individual entrepreneur, which begins from the moment the certificate is issued to the entrepreneur. The main feature of this form is the risk of all property. In other words, if an entrepreneur’s debt to counterparties arises as a result of an unsuccessful transaction, then not only goods for sale, equipment for a store or office, but also a personal car, dacha or apartment can be used to repay it. For this reason, accounting is of primary importance for the entrepreneur himself. It will help you avoid negative consequences and calculate risks in a timely manner.
In addition, improperly organized accounting will lead to accounting errors, which will lead to fines and penalties. The debt to the tax authorities will again result in the payment of the required amount at the expense of all property, including personal property. You will have to pay in any case. And if there is a large tax debt (more than 600,000 rubles over three years), then we will talk about criminal liability under Article 198 of the Criminal Code. So, not only the activities of individual entrepreneurs, but also, to some extent, life depend on simple accounting.
What reporting should an individual entrepreneur provide upon closing:
But there are still certain points that will allow you to resolve this situation. If it is impossible to repay the debt, the entrepreneur has the right to go to court to reduce its size. Very often, such claims are satisfied in favor of the individual entrepreneur, the difficult financial situation is taken into account and small concessions are made. Another positive point is that, in comparison with organizations, fines for individual entrepreneurs are much lower.
Expert opinion
Maria Bogdanova
More than 6 years of experience. Specialization: contract law, labor law, social security law, intellectual property law, civil procedure, protection of the rights of minors, legal psychology
Law No. 402-FZ establishes that individual entrepreneurs may not keep accounting records. But this provision should not be understood to mean that the individual entrepreneur does not report to the state at all. In addition to accounting itself, there is another one – tax accounting. Tax accounting is the collection and synthesis of information necessary to calculate the tax base and tax payments. It is carried out by all taxpayers, including individual entrepreneurs.
One of the options for accounting is outsourcing accounting services, that is, transferring accounting functions to an external contractor. A striking example of the principle “the more expensive, the simpler.” The services of an accounting firm are the most expensive method, but it relieves individual entrepreneurs from the need to delve into accounting matters. Specialists are busy with accounting, and the entrepreneur himself can calmly devote himself to the rest of the work.
Features of accounting for individual entrepreneurs for beginners
Two features can be noted as characteristic of all entrepreneurs:
- mandatory maintenance of a book of income and expenses KUDiR (with the exception of entrepreneurs on UTII);
- payment of fixed contributions to the Pension Fund.
Now let us briefly outline the features of accounting depending on the tax systems.
BASIC
The system allows an entrepreneur to become a full-fledged VAT payer, which is necessary for successful business with organizations. OSNO is distinguished by its labor intensity compared to others. It assumes:
- maintaining KUDiR;
- filling out the purchase/sales book, issuing invoices and recording them in the journal;
- maintaining personnel records.
Taxes required to be paid:
- Personal income tax of 13% on income;
- VAT at 18%;
- fixed contribution to the Pension Fund;
- contributions for employees - personal income tax and insurance;
- additional local taxes if necessary.
Frequency of tax reporting:
- quarterly until the 25th for VAT;
- annually until April 30 for personal income tax;
- if there are employees - the established frequency to extra-budgetary funds.
USN and Patent
The “simplified” tax system provides for the payment of one tax and the option for calculating it (“income” or “income minus expenses”) can be chosen by the entrepreneur independently. This system is supposed to be used to conduct KUDiR. An annual report in the prescribed form must be submitted to the tax office by March 31, and advance payments under the simplified tax system must be paid by the 25th quarterly.
A patent is available to few. Only KUDiR is conducted on it. The tax is paid in two stages. There is no reporting.
It is worth noting that when attracting employees or workers, the obligation to provide reports for them, maintain personnel records and make payments to extra-budgetary funds appears for both of these systems.
UTII and Unified Agricultural Tax
The UTII records only physical indicators that characterize the activities of the entrepreneur. Maintaining KUDiR is optional. Tax reporting is submitted quarterly by the 25th, the calculated tax is paid by the 20th.
KUDiR is carried out at the Unified Agricultural Sciences. They pay taxes on March 31 and June 25, twice a year. Reports are due by March 31 annually.
Payment of taxes to extra-budgetary funds for oneself and for employees, as well as reporting, take place in the same manner as for OSNO.
The information provided will help you get a general idea of the need and procedure for accounting for starting individual entrepreneurs. Proper document management will not only avoid fines, but also increase the profitability of your business. Each system, as well as reporting, is discussed in more detail in the relevant articles on our website.
Hello! In this article we will talk about the features of accounting for individual entrepreneurs.
Today you will learn:
- What records should an individual entrepreneur keep?
- What methods of accounting exist?
- How to do accounting for an individual entrepreneur yourself.
Does an individual entrepreneur need to keep accounting records?
In 2019, a letter from the Ministry of Finance of the Russian Federation continues to apply, according to which an individual entrepreneur may not keep accounts if he independently maintains a book of income and expenses (KUDiR).
Thus, all accounting for an individual entrepreneur can be reduced to filling out an account book (in electronic or bound paper format) and storing primary documents. Exception: entrepreneurs paying UTII - for them maintaining KUDiR is not at all necessary.
The individual entrepreneur himself chooses: to keep full accounting records or only a book of income and expenses.
An individual entrepreneur may not keep accounting records, but this does not exempt him from tax reporting. Its features and deadlines depend on.
Individual entrepreneurs are not exempt from collecting documents related to the calculation of taxes, cash and bank documents, and personnel records.
Underpayment of tax may result in an individual entrepreneur being subject to a fine or forced suspension of activities.
Good accounting has its advantages:
- The ability to make an objective analysis of performance results;
- It is easier to make forecasts and choose the direction of development of the enterprise;
- Orderly work flows easier and more efficiently.
Accounting is necessary for managing an enterprise, making important decisions and reporting to the state.
Options for maintaining individual entrepreneur records
A beginning individual entrepreneur can conduct accounting in one of the following ways:
- On one's own. Accounting for individual entrepreneurs on (for example, the simplified tax system) has a fairly simple scheme, which allows a businessman to conduct accounting independently.
Online accounting services (for example, "My business") and specialized programs (for example, 1C), which describe and guide the entire process in detail.
- With the help of a hired accountant. This option will cost less than a contract with an accounting firm, but the risks also increase. It is very important and at the same time difficult to find an honest, experienced specialist. It is advisable to hire a private accountant based on recommendations from friends or trusted persons. In other situations, it is worth once again weighing all the risks and benefits and only then deciding whether to resort to this option.
- Under an agreement with an outsourcing company. A striking example of the principle “the more expensive, the simpler.” The services of an accounting firm are the most expensive method, but it relieves individual entrepreneurs from the need to delve into accounting matters. Specialists are busy with accounting, and the entrepreneur himself can calmly devote himself to the rest of the work.
Online accounting is the best option for individual entrepreneurs
Internet accounting today confidently competes with stationary programs due to a number of advantages:
- full-fledged accounting and tax accounting is possible;
- full control and access to accounting is possible online from any computer;
- the service reminds you of upcoming reporting deadlines;
- it is possible to fill out declarations remotely;
- availability of a theoretical basis for accounting and reporting, online consultations with specialists are available;
- Through the service you can quickly and easily submit documents and submit reports online.
We use the service "My business". It has a convenient intuitive interface that even a beginner can understand. You can test the work of your accounting department for free for three days. All questions are answered very quickly and clearly by support.
The service does not have its own mobile application, like some other resources, but there is a very convenient mobile version of the site, so you can work not only from a computer, but also from a smartphone or tablet.
When registering, you can immediately specify all the details of the company and then the system will use them when generating documents, invoices and reporting.
The service contains several thousand ready-made forms.
Under the general regime, individual entrepreneurs will also have to pay VAT (18%). The declaration is drawn up quarterly, and the tax is paid by the 25th day of the first month following the reporting quarter. To calculate VAT, it is necessary to keep books of all purchases, sales, and invoices.
Individual entrepreneurs working with cash also need to maintain receipt and expenditure orders.
Individual entrepreneurs at OSNO will have to report on. Such an obligation is not imposed on UTII and the simplified tax system if cadastral value is not applied to property in your region.
Every three months, reports are submitted to the Tax Office, and the annual report is also submitted there.
. Under the simplified system, individual entrepreneurs without employees report to the tax office only once a year, until April 30.
An individual entrepreneur can choose one of the “simplified” options:
- simplified tax system income– only income can be taken into account; 6% must be deducted from it to the budget. Advance payments are made quarterly, but they are taken into account when calculating the amount at the end of the year.
- simplified tax system income minus expenses– the main difficulty is that the individual entrepreneur will have to record and confirm all his expenses, which are not always easy to justify.
Accounting for individual entrepreneurs using the simplified tax system must be accompanied by a book of income and expenses. Its absence threatens the individual entrepreneur with a fine of 10,000 - 30,000 rubles.
Maintaining simplified accounting without employees is quite easy and accessible even for novice businessmen. Due to its simplicity, the simplified tax system has become the most popular regime among individual entrepreneurs.
. An individual entrepreneur on the “imputation” is exempt from the mandatory maintenance of KUDiR, but even so, the tax remains quite difficult to understand and independently calculate.
On UTII, the entrepreneur records only the physical characteristics of the activity (field of work, area of premises, etc.) and regularly reports all changes.
The tax is calculated based on the basic profitability established by government services for each type of activity and various coefficients (most of which are preferential).
Individual entrepreneurs report on UTII separately for each type of activity (if there are several of them).
Tax reporting on UTII is submitted quarterly, by the 20th day of the month following the end of the quarter. The tax itself is paid until the 25th.
Stage 2. Hired employees
Keeping an individual entrepreneur’s books independently becomes more difficult with the advent of hired workers. By becoming an employer, an individual entrepreneur acquires the status of a tax agent - now he must calculate and withhold income tax from employees, as well as pay contributions for them to Social Security and the Pension Fund.
As for reporting, the following are added to the concerns of individual entrepreneurs:
Where | What | When |
Inspectorate of the Federal Tax Service | Data on the average number of employees | Until 20.01 following the reporting year |
Inspectorate of the Federal Tax Service | Until 1.04 following the reporting year | |
Inspectorate of the Federal Tax Service | Employee income data () | |
FSS | Until the 20th day following the reporting quarter in paper form and until the 25th day in electronic form | |
Pension Fund | Until the 15th day of the month following the reporting month | |
Pension Fund | Form SZV-STAZH | Until March 1 following the reporting year |
Tax office | Form RSV-1 | Until the end of the month following the reporting quarter |
It is very difficult to keep track of all personnel records yourself, and at the same time engage in other business activities, therefore, to work with hired employees, experts still recommend turning to the services of professionals. In total, individual entrepreneurs must submit seven types of reports for employees, maintain and store personnel documents.
Stage 3. Selecting the type of accounting service
Even with a small document flow and the simplest modes (for example, simplified taxation system for income), special programs (for example, 1C) or online services (“My Business”) will help an entrepreneur to keep books.
Such assistants will minimize errors that are easy to make when keeping records manually.
Stage 4. Creating a calendar
The final stage of preparation for independent accounting is studying the reporting forms in the chosen mode and the deadlines for its submission. Modern electronic assistants themselves remind you of the approaching reporting date, but it is still necessary to know the main deadlines.
Stage 5. Maintaining and storing documents
For your own safety, the individual entrepreneur must treat all documents with care. can visit an individual entrepreneur even three years after its closure.
For example, the accounting department of a store should store:
- agreements with suppliers of goods and services (maintenance of equipment, Internet), lessors, regular wholesale buyers;
- agreement with the bank, statements;
- source documents;
- personnel documents (if there are employees);
- cash papers.
Automation of accounting
You can do your own accounting on paper, making all the entries manually, but it is much more convenient to turn to automated systems.
Technologies do not stand still, and today various services come to the aid of an entrepreneur without an accountant, allowing:
- calculate tax amounts depending on the taxation regime;
- prepare;
- draw up bank documents, payment orders;
- control payments to employees and payment of bills;
- analyze profits and sales.
Electronic assistants can be either in the form of computer programs (for example, individual entrepreneur accounting in 1C) or in the form online accounting.
Programs will cost the entrepreneur more: you will have to pay for the program itself, for its installation, and in the future for regular updates and maintenance by the programmer. It will be accessible only from one computer, but it can work without a permanent Internet connection.
Let’s talk about the possibilities and features of online accounting using the example of the “My Business” service.
Let's summarize with a few tips:
Use online services. It's cheaper than an accountant's services and more reliable than notes on paper. With online accounting, you will not be tied to one computer, which means it’s convenient to work with them both at home and in the office.
Store and organize all paper documents. Searching for the required paper in a general pile can take a fair amount of time, so it is more advisable to immediately sort documents into folders or files (depending on their number). For example, groups could be: purchases, sales, customers, regular suppliers, taxes.
Check with the tax office. You can verify that there is no debt a week after paying the tax through your online accounting system or your personal account on the Nalog.ru website.
Ask questions. You can get advice on the Internet, on forums and on social networks. Don’t be afraid to ask questions and learn something new, because legislation doesn’t stand still either.
Keep an eye on the calendar. An entrepreneur who does his own accounting has to keep a lot of dates in mind. The deadlines for submitting reports do not always coincide with the deadlines for paying taxes and contributions to government funds.
Many businessmen, when opening their own business, do not pay enough attention to maintaining accounting, tax, and personnel records. You should think about the serious consequences in case of incorrect document flow at the enterprise. Fiscal authorities may impose large fines and penalties for the absence of required papers and declarations. To avoid such a situation, you need to know how to organize an accounting system depending on the chosen taxation scheme, and what documents to submit to employees of the Federal Tax Service (hereinafter referred to as the Federal Tax Service).
Accounting for individual entrepreneurs
According to the provisions of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting,” individual entrepreneurs (hereinafter referred to as individual entrepreneurs) are allowed not to use a complex document flow and accounting system with often incomprehensible operations and postings. Many businessmen mistakenly interpret this resolution as permission not to do accounting at all, limiting themselves to regularly filling out the Book of Income and Expenses (hereinafter referred to as KUDiR). Meanwhile, the entrepreneur will have to submit tax reports, and this requires maintaining primary documentation.
Preparation of accounting records for individual entrepreneurs, the nuances and features of office work are directly related to the tax system chosen by the businessman. If an entrepreneur has chosen one of the preferential special regimes, then managing document flow is easier. If you have chosen the basic taxation system (hereinafter referred to as OSNO), then you cannot do without qualified specialists who can calculate the paid and deducted value added tax (hereinafter referred to as VAT).
In order to correctly and correctly calculate the tax base for the payment of fees to the state and contributions to federal funds, it is necessary to constantly take into account the primary documentation. If an entrepreneur hires employees, then accounting for individual entrepreneurs becomes more complicated, since it will be necessary to calculate taxes for employees, pay them to the Federal Tax Service, and submit timely declarations and reports to inspection authorities.
Accounting Features
The responsibilities of any entrepreneur include maintaining KUDiR in paper or electronic form. If a businessman prefers to manually fill out the book, then he will need to number all the pages, sew them together, and seal them. The document reflects information about all business transactions carried out by the company - the receipt of cash and non-cash funds, expenses incurred. KUDiR serves as the object of inspection by the tax service. The literacy and accuracy of accounting can be checked within three years after the official closure of the company.
Only entrepreneurs who apply the Unified Tax on Imputed Income (hereinafter referred to as UTII) are exempt from maintaining KUDiR; all other businessmen are required to submit this document to the tax service. If the entrepreneur “sits” on OSNO, then he will have to keep records of all primary documents, invoices with VAT, and make accounting entries related to the calculation and deduction of this tax. The main tax system provides for the payment of taxes on profits and property, which will have to be calculated separately, determining the basis for calculating fees.
Tax accounting and reporting
Maintaining the documentation necessary to calculate and pay the necessary fees is called tax accounting. Often, businessmen combine accounting and tax accounting, since internal records management is directly related to the calculation and payment of contributions to budgets of all levels. In order to calculate and pay the required fees, you need to thoroughly study what reporting is required in the applicable taxation system.
If a businessman illiterately draws up official papers, maliciously or unintentionally misleads the Federal Tax Service by providing incorrect reporting, or understates the basis for calculating taxes, then he will have to bear responsibility. The legislation provides for severe penalties for enterprises that have incorrectly organized accounting in the organization, up to and including criminal prosecution, if there is evidence of arrears in paying taxes in excess of 600 rubles. Bailiffs can confiscate not only the property of the company, but also the personal property of the owner.
Organization of individual entrepreneur accounting
Since well-organized accounting is of great importance for an entrepreneur, immediately after carrying out the registration procedure and selecting a taxation system (hereinafter referred to as TS), the businessman should decide how he will carry out document flow and ensure that taxes and fees are calculated correctly. There are three options for a merchant to conduct accounting:
- Independent. If one of the preferential special regimes is chosen, then the entrepreneur can organize the document flow personally.
- With the involvement of an employee. This option is chosen if they feel insufficient competence in accounting matters.
- Contract with an outsourcing company engaged in consulting, provision of accounting and tax services. This organization of document flow in an enterprise is the simplest, but it is expensive.
Independent accounting in special modes
Preferential SNs provide for easier documentation. To reduce costs, you can conduct office work yourself. Maintaining accounting for individual entrepreneurs using the simplified tax system involves consistent and systematic filling out of KUDiR and recording of primary reporting. If a businessman uses UTII, then accounting is simplified. There is no need to maintain KUDiR; you can only limit yourself to recording the documentation that serves as the basis for calculating the basic tax.
Independently maintaining official papers is beneficial from a financial point of view - a businessman does not spend money on hiring employees who can be entrusted with such a task. Switching to online accounting services greatly simplifies company accounting. The chosen system is cheaper than the services of an incoming or permanent employee, but you should be sober about your capabilities for maintaining the company’s records. Independent accounting for individual entrepreneurs is labor-intensive and is fraught with errors when calculating taxes.
With the help of a hired accountant
If the owner of the enterprise does not want or does not have the time to debug the company’s accounting himself, then he should hire a qualified specialist who understands all the nuances and complexities of the business plan chosen by the merchant, who is familiar with the latest changes in legislation, and who knows the deadlines for deducting payments for fees and taxes. Hiring an experienced accountant will help the employer save money, since the cost of cooperation with one person is much lower than outsourcing office work.
The choice of an employee responsible for accounting for individual entrepreneurs must be approached responsibly, taking into account all the consequences of poor-quality and illiterate work. The cost of services for a hired accountant in Russia ranges from 40-60 thousand rubles. You can agree on piecework performance of duties, for example, submitting reports on time, and at normal times do your own accounting.
Agreement with an outsourcing company
The easiest way to conduct accounting for an individual entrepreneur is to completely delegate the office work to a company that is specifically engaged in maintaining tax and accounting records. This method is acceptable if the owner does not have time to deal with paperwork, he wants to spend his time solving more important economic or financial issues. Specialized firms will keep records “from scratch” and submit reports to the tax inspectorate according to established deadlines.
The advantage of working with an outsourcing company is that a businessman does not need to worry about how tax returns are filled out and payments are transferred to budgets of all levels. A specialized organization takes responsibility for accounting for individual entrepreneurs. The disadvantage of this form of reporting is that the head of the enterprise is completely “excluded” from the process of generating official papers. In addition, the cost of outsourcing services is much more expensive than hiring an accountant. For complete accounting you will have to pay about 100 rubles in Moscow.
How to properly conduct accounting yourself - step-by-step instructions
Properly organized document flow of a company is the key to successful economic and financial activities, so you should carefully consider accounting for individual entrepreneurs. After the registration procedure, the businessman is given a month to choose a SN, otherwise the Federal Tax Service automatically transfers the entrepreneur to OSNO. You should think through all the nuances and details of accounting in advance, studying the principles of deduction of taxes and contributions. You need to act in the following sequence:
- Estimate the size of the company’s upcoming income and expenses in order to assess the possibility of selecting a tax system.
- Select the special SN mode, if possible. There are only 4 of them: UTII, simplified taxation system (hereinafter referred to as the simplified taxation system), or “simplified”, Unified Agricultural Tax (UST), patent taxation system (hereinafter referred to as the PSN). You need to choose a special mode depending on the type of work or services that the individual entrepreneur will engage in. The amount of subsequent tax deductions directly depends on the selection of SN. If the individual entrepreneur cannot choose a special regime on his own, you can consult with specialists.
- Find out what kind of reporting is required to be submitted to the Federal Tax Service for the selected tax system, how to organize accounting for individual entrepreneurs, and record primary documentation.
- Determine the amount of work that the future company will perform, understand whether it is necessary to use hired labor. The maintenance of personnel records, the calculation of wages to employees with the payment of contributions to funds, benefits, and other issues related to document flow depend on this.
- Find out the deadlines established by the Federal Tax Service for deductions of taxes and contributions.
- Determine who will conduct accounting for the individual entrepreneur - an employee, an outsourcing company or the businessman himself. Explore the possibility of using online accounting.
- Save all primary documents, distributing them into categories. Take into account contracts with suppliers, customers, contractors, maintain strict reporting forms (SSR), estimate documentation confirming the chosen type of activity, expenses incurred and revenue received.
Selecting a tax system and calculating the tax burden
In order to competently choose a suitable SN, the taxpayer needs to decide on its main elements. According to the law, the following factors are taken into account:
- The object of taxation is the receipt of income, profit, or other result from the activities of the organization, in the event of which it is necessary to make payments to the budget.
- The basis for calculating taxes is the expression in monetary units of the object of taxation.
- The period for paying taxes is the time during which the base is determined and the amount of the fee is calculated.
- The procedure for calculating and deadlines for paying tax.
To select a CH, you need to focus on the following criteria:
- direction of the enterprise's activity;
- average number of hired workers;
- the amount of expected profit;
- price of fixed assets and company equipment;
- the average monthly turnover of the company, the regularity of receipt of money from counterparties and buyers;
- regional features that take into account the types of activities for special UTII or PSN regimes.
Accounting for current business transactions in KUDiR
State regulations provide for the maintenance of KUDiR in paper or electronic form. An entrepreneur at any SN is obliged to maintain documentation, recording receipts and expenses, making notes on primary receipts and expenditure orders, invoices, invoices evidencing purchases, and cash flows in the current account. In addition, the merchant’s responsibilities include analytical accounting of profits and losses, which is necessary for the correct calculation of tax payments.
If an individual entrepreneur maintains accounting using OSNO, then, in addition to KUDiR, it is necessary to take into account all primary documentation on value added tax, analyze incoming and issued invoices, which include VAT, with registration in the appropriate journal. Ensuring the maintenance of KUDiR is very important - based on the information available in the book, the businessman submits a tax return 3-NDFL at the end of the reporting period. If an individual entrepreneur works with cash, you need to maintain a cash book taking into account all receipts and expenditure orders.
Personnel records
If a businessman hires employees, then in order to accurately calculate contributions to funds and tax payments, proper personnel records of employees are necessary. Labor legislation provides for liability for individual entrepreneurs who neglect to maintain the necessary documentation. When hiring a citizen, an entrepreneur is required to perform the following actions:
- conclude an employment contract or agreement with an individual;
- issue an order to hire a citizen, indicating the start date of his work and his position;
- issue a personal card or file for the hired employee, indicating personal data, information about education, qualifications, work experience, presence of a spouse, children, military ID information (for men);
- make entries in the work book, if available, or create a new one.
When hiring a citizen for a job, the individual entrepreneur is obliged to pay him a salary with personal income tax, contributions to the Pension Fund of the Russian Federation (hereinafter referred to as the Pension Fund of the Russian Federation), the Social Insurance Fund (hereinafter referred to as the FSS), and the Compulsory Medical Insurance Fund (MHIF). All payments for accrued fees are made monthly, until the 15th of the next reporting period.
Information about employees, taking into account employment contracts, personal cards, orders for appointment, transfer, dismissal, penalties, must be stored for at least 75 years. Copies and originals of work records that are not useful to workers are preserved for 50 years. After the liquidation of the enterprise, the employer is obliged to hand over all information about the employed citizens to the archives. The storage period for employer data is unlimited.
Accounting and tax reporting
The businessman will have to keep accounting records and submit several reporting forms to the Federal Tax Service at once, not forgetting to fill out declarations within the deadlines established by law. If an individual entrepreneur has employees, then the following official papers must be submitted:
- in the Pension Fund of the Russian Federation, the SZVM form, about working citizens who are recipients of state benefits, every 3 days until the 15th of the next month;
- quarterly reports to confirm deducted and paid contributions to the Pension Fund of the Russian Federation and compulsory medical insurance, provided by the Federal Tax Service at the place of registration of the entrepreneur no later than the 30th day of the following month after the reporting period;
- in the Social Insurance Fund, form 4-FSS on calculated and paid insurance premiums for the previous quarter, no later than the 20th day of the month following the reporting period;
- certificates 2-NDFL, 6-NDFL about the amount of tax paid for employees over the past year, no later than April 20;
- VAT returns quarterly, before the 25th of the next month;
- information about the payment of the main tax of individual entrepreneurs, in accordance with the adopted SN and accounting.
Online accounting and specialized programs for individual entrepreneurs
If you don’t want to spend money on hiring an office employee or transfer documents to an outsourcing company, then you can entrust the accounting and administration of individual entrepreneurs to electronic programs related to accounting automation. You can use the online services “1C: Entrepreneur” or the “My Business” system. Electronic technologies offer individual entrepreneurs the following tools for accounting:
- prompt calculation of the amount of all taxes, fees, and state duties depending on the chosen tax system;
- automatic completion and preparation of tax returns, statements, and other types of reporting;
- recording of primary documentation;
- registration and sending of payment orders to banking organizations;
- blocking in case of unauthorized access;
- control of payments made to employees;
- analytical accounting of expenses, revenue, profitability, losses.
Despite all the convenience of electronic accounting services, a merchant will have to incur costs - buy a program, pay for its installation, constantly pay a subscription fee, and purchase updates. If you have chosen to purchase a patent or UTII, you can manage the paperwork yourself, without using automatic services. Accounting according to OSNO is complex and time-consuming, so it would be more practical to use the labor of hired workers or outsourcing companies rather than purchasing special programs.
Accounting for individual entrepreneurs using the simplified tax system
About 70% of Russian entrepreneurs prefer to keep accounting records using the simplified tax system. This fee deduction scheme is simple - the businessman is required to complete the KUDiR, competently record primary documentation, and pay wages to employees with timely tax payments. Payment of a single fee under the simplified tax system replaces VAT, income and property taxes.
There are two options for the system - “Income” and “Income minus expenses”. If an individual entrepreneur chooses the first scheme, then the KUDiR takes into account only incoming revenue, from which it is required to pay 6% to the state. If the second option was preferred, then the documentation should take into account revenue and expenses. The difference between these two indicators requires you to pay 15%. Care must be taken to account for expenses, since, according to the provisions of the law, not all expenses are included in them.
Maintaining accounting records for individual entrepreneurs on UTII
A merchant using UTII may not issue a KUDiR. To calculate the basic tax, the state requires the issuance of data characterizing the work or services provided by the company. These include the type of activity, the total area of the premises, the number of employees hired, and the amount of expected profit. The tax base takes these indicators into account. The total payment amount is fixed, depending on the applied regional and district increasing or decreasing coefficients. UTII reports are required to be submitted quarterly, before the 20th of the next month.
Reporting of an individual entrepreneur
The chosen tax system obliges you to submit declarations and other official documentation to the Federal Tax Service Inspectorate (hereinafter referred to as the Federal Tax Service Inspectorate) “for yourself” according to the established deadlines. The types of reporting, depending on the adopted SN, can be seen in the table below:
Tax scheme option | Declaration of main fee | ||
Fixed payments for individual entrepreneurs for themselves
In 2019, the annual amount of payments that an entrepreneur is obliged to pay for himself to the Pension Fund of the Russian Federation and the Compulsory Health Insurance Fund (hereinafter referred to as the Compulsory Medical Insurance Fund) changed. The state has established fixed amounts of the following amounts:
- contributions for pension insurance – 26,545 rubles;
- payments for health insurance – 5,840 rubles.
Contributions are paid annually, no later than December 31 of the current reporting period. If, according to reporting data, the income of a businessman is above 300 thousand rubles, then he will have to pay an additional 1% of the amount exceeding this figure to the Pension Fund, starting from the moment the difference is recorded. The maximum amount of contributions to the Pension Fund of the Russian Federation should not exceed 186 thousand rubles.
Reporting on hired employees
If a businessman employs individuals, then he is an employer. Regardless of the taxation scheme, it is required to provide reporting for employees to the Federal Tax Service and federal funds. The types of declarations for employees can be seen in the table below:
Tax calendar for individual entrepreneurs
Proper accounting by an entrepreneur provides for timely advance and final transfers of established fees. Each SN has its own deadlines for repaying debt payments. You can see the dates for transferring payments and submitting reports in the table below:
CH name | 6 months | 9 months | 12 months |
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Instructions
Individual entrepreneurs who are on UTII are not required to keep accounting records. At the same time, the Tax Code provides for keeping records of individual entrepreneurs, but in what form it is not specified. In particular, there is no special ledger for recording income and expenses for UTII payers. It is also not of particular interest to the tax authorities, because Neither the amount of income nor the amount of expenses affects the amount of taxes payable. Despite the fact that individual entrepreneurs are not required to keep records, they can do this for personal purposes in order to track the dynamics of revenue receipts.
Individual entrepreneurs NP UTII are required to keep records of physical indicators on which the tax base is calculated. They vary depending on the type of activity. For example, for household services the number of employees is used as a physical indicator. Such entrepreneurs need to keep records of the number of employees and working time sheets. For retail trade, the tax base depends on the retail space. Therefore, an individual entrepreneur must have a lease agreement that contains information about the area of the premises or documents that confirm ownership of it.
According to the innovation of 2012, individual entrepreneurs are required to observe cash discipline. This means that they must issue receipts and expenditure orders for all cash transactions, as well as keep records of sales receipts. But since all the income of an individual entrepreneur relates to his personal funds, entrepreneurs are provided with some concessions compared to LLCs. So, they can set a zero cash balance limit and not hand over receipts that exceed it to the cash register; individual entrepreneurs may not keep all the cash in the cash register and not capitalize incoming money. If there is a cash register, the individual entrepreneur must maintain a cashier-operator book.
An individual entrepreneur on UTII can reduce the amount of imputed taxes on insurance premiums paid for himself or for his employees. Therefore, he needs to keep receipts for payment of these salary taxes or be able to provide an extract from his bank account.
If an individual entrepreneur is an employer, then he must have a full range of documentation related to attracting hired employees. The list of personnel documentation includes labor regulations; job descriptions; staffing schedule; employment orders; accounting of work books; regulations on remuneration and personal data; vacation schedule, etc.
note
If a company combines UTII and another tax regime (OSNO or simplified tax system), it must keep separate records of the revenue received. At the same time, for those who combine UTII and OSNO, or the simplified tax system, income minus expenses, it is also necessary to keep separate records of income.
Helpful advice
For the absence of documents that confirm the accuracy of recording physical indicators, you may face a fine from the tax authorities. But tax officials cannot fine an individual entrepreneur for UTII that does not maintain KUDiR; there is no liability for this.
Currently, citizens have the opportunity to acquire ownership of a plot of land that is classified as agricultural. If you are the owner of such a site and intend to conduct economic activity on it, you should know that its type may be limited by permitted use.
Instructions
On agricultural lands, their owner or tenant has the right to act only within the framework of the regulations approved for this category of land and the intended purpose of the site, which was determined when preparing documents for it. The plot could be provided to you, in particular, for running a personal subsidiary or peasant farm, agricultural production, animal husbandry, gardening, vegetable gardening or for summer cottage construction.
For each of these types of activities, there are regulations that limit the conduct of economic activities in these areas. So, if the type of permitted use of your land plot is “for agricultural production,” then you can cultivate land and crops on it. On this land you can build enterprises for the storage and processing of agricultural products, use it as arable land, for planting or for livestock breeding.
In the case where a plot of land is received “for dacha construction”, it is possible to build a dacha residential building on it with the right of registration or a non-permanent building without the right of registration and outbuildings. You have the right to grow fruits and berries, vegetables, potatoes, melons and other agricultural crops. In practice, you can also operate on lands allocated for gardening.
But the plot intended for a vegetable garden does not provide for the construction of permanent residential buildings or the cultivation of perennial fruit crops. And the right to erect a non-permanent residential building and economic buildings and structures is granted depending on the permitted use of the land plot, determined during the zoning of the territories.
Helpful advice
If you wish, you can change the permitted use of a land plot within one category. To do this, you will need to write an application to the municipal administration and collect the necessary package of documents.
Many entrepreneurs opt for a simplified taxation system. It allows you to minimize the list of documentation that an individual entrepreneur must maintain.
You will need
- - KUDiR;
- - cash book;
- - source documents;
- - personnel documents.
Instructions
The list of documents that an individual entrepreneur needs to conduct business on the simplified tax system can be divided into several groups. This is the one that is associated with tax accounting, with working with clients and employees. Individual entrepreneurs are exempt from accounting.
The main register that records income and expense transactions of an individual entrepreneur is KUDiR. It records all receipts to the cash desk and to the current account of the individual entrepreneur, which serve as the basis for calculating the tax base. At the same time, individual entrepreneurs using the simplified tax system-6% are not required to keep records of expenses. According to the new rules, KUDIR is not certified by the tax authorities, but the entrepreneur must be ready to present it at any time upon request.
When starting their own business, entrepreneurs do not always pay due attention to the issue of accounting. Some have heard that being an individual entrepreneur is not required by law, others consider this issue to be of secondary importance, and still others say that there is nothing complicated here, and you can cope with the accounting yourself.
In fact, setting up an individual entrepreneur’s accounting department from scratch is necessary already at the stage of planning business activities. Why?
There are several reasons for this:
- A competent choice of taxation system will allow you to choose the minimum possible tax burden. To ensure that you do not unknowingly fall under the definition of illegal tax schemes, practical tax planning for your business should be carried out by specialists, not dubious advisers.
- The composition of reporting, the timing of tax payment, and the possibility of obtaining tax benefits depend on the chosen regime.
- Violation of deadlines for submitting reports, accounting procedures, payment of tax and non-tax payments will lead to unpleasant sanctions in the form of fines, disputes with the tax service, and problems with counterparties.
- After registering an individual entrepreneur, you have very little time to choose a tax regime. So, to switch to the simplified tax system it is only 30 days after receiving the certificate. If you do not choose a tax system right away, you will work on OSNO. In most cases, this is the most unprofitable and difficult option for a beginning entrepreneur.
Do you need an accountant for an individual entrepreneur? Accounting support for individual entrepreneurs is definitely necessary. The only question is who will carry it out - a full-time accountant, a third-party provider of accounting services, or an individual entrepreneur himself?
Accounting for individual entrepreneurs in 2019
Law No. 402-FZ establishes that individual entrepreneurs may not keep accounting records. However, this provision should not be understood to mean that the individual entrepreneur does not report to the state at all. In addition to accounting itself, there is another one - tax accounting.
Tax accounting is the collection and synthesis of information necessary to calculate the tax base and tax payments. It is carried out by all taxpayers, including individual entrepreneurs. To understand tax reporting and tax accounting procedures, you must have professional knowledge or study these issues yourself. And in addition, there are special reports on employees, cash and bank documents, primary documentation, etc.
Often entrepreneurs do not see much difference between the types of accounting, so all their accounting is called accounting. Although in the normative sense this is not true, in practice it is a familiar expression, so we will also use it.
So, how to do accounting correctly? There is only one answer - professionally. An accountant for an individual entrepreneur can be a full-time employee or a specialist. If the number of business transactions of an individual entrepreneur is not too large, then the salary of an accountant hired for a permanent job may turn out to be an unjustified expense. If you are ready to take care of your accounting yourself, we will tell you how to do it.
How can an individual entrepreneur conduct accounting on his own? Is it possible? You will find the answer below in the step-by-step instructions.
How an individual entrepreneur can do accounting on his own: step-by-step instructions for 2019
So, to the question: “Is an individual entrepreneur required to keep accounting records in 2019?” we received a negative answer. But although individual entrepreneurs do not keep accounting records and do not submit financial statements, we have already said above that entrepreneurs need to maintain document flow related to business. Where to start accounting for an individual entrepreneur? Read our step-by-step instructions.
Step 1. Make a preliminary calculation of the expected income and expenses of your business. You will need this data when calculating your tax burden.
Step 2. Select tax regime. You can find out in detail what regimes or taxation systems an individual entrepreneur operates in Russia in the article: “”. Here we will only list them: the main taxation system (OSNO) and special tax regimes (STS, UTII, Unified Agricultural Tax, PSN). The tax burden of individual entrepreneurs directly depends on the choice of taxation system. The amounts that you must pay to the budget may vary significantly in different modes. If you do not know how to calculate your tax burden, we recommend that you get a free tax consultation.
Step 3.Review the tax reporting for the selected regime. You can find current reporting forms on the Federal Tax Service website tax.ru or in ours.Step 4. Decide whether you will hire workers. How can an individual entrepreneur keep accounting records for an employee? Employers' reporting can be called quite complex, and its composition does not depend on the chosen tax regime and the number of employees. In 2019, several types of reports are submitted for employees: to the Pension Fund of the Russian Federation, to the Social Insurance Fund and to the tax office. For example, by January 20, all individual entrepreneurs with employees must submit. In addition, employers must maintain and store personnel records.
Step 5. Study your regime's tax calendar. Failure to comply with the deadlines for submitting reports and paying taxes will lead to fines, penalties and arrears, blocking of the current account and other unpleasant consequences.
Step 6. Decide on the type of accounting service. In simple modes, such as the simplified tax system Income, UTII, PSN, even if you have employees, you can maintain the accounting of individual entrepreneurs yourself. Your main assistant in this case will be specialized online services, such as 1C Entrepreneur. But for OSNO and simplified taxation system Income minus expenses, as well as with a large number of business transactions, it is more reasonable to outsource accounting for individual entrepreneurs.
Step 7 Maintain and save all documents related to the business: contracts with counterparties, documents confirming expenses, bank statements, personnel documents, BSO, cash register reporting, primary documents, incoming information, etc. The tax inspectorate can check documents on the activities of an individual entrepreneur even within three years after deregistration.
Accounting and tax accounting for individual entrepreneurs on OSNO
You can read about in which cases it makes sense to choose a general taxation system. Accounting for an individual entrepreneur who works for OSNO will be the most difficult. If we talk about reporting forms, then this is the 3-NDFL declaration for the year and quarterly for VAT.
The most difficult thing will be the administration of value added tax. Maintaining individual entrepreneur accounting on OSNO is especially difficult when obtaining tax deductions for this tax or refunding input VAT.
For the convenience of paying taxes and insurance premiums, we recommend opening a current account. Moreover, now many banks offer favorable conditions for opening and maintaining a current account.
Accounting for individual entrepreneurs using the simplified tax system
Accounting for individual entrepreneurs using the simplified tax system is much simpler, because You only need to file one tax return per year. The reporting deadline for individual entrepreneurs on the simplified tax system in 2019 without employees is April 30, and within the same period the annual tax must be paid minus advance payments.
You can conduct accounting for individual entrepreneurs under the simplified tax system Income 6% yourself. In this regime, only income received is taken into account; the tax rate is generally 6%. At the end of each quarter, you must pay an advance payment, which will be taken into account when calculating the single tax at the end of the year.
How to keep accounting for an individual entrepreneur under the simplified tax system Income minus expenses? The main difficulty in this tax regime will be the need to collect documents confirming expenses. In order for the tax office to accept expenses declared to reduce the tax base, all documents must be completed correctly. Recognition of expenses for the simplified tax system Income minus expenses is almost the same as the recognition of expenses for OSNO. This means that expenses must be economically justified and be included in the special list specified in Article 346.16 of the Tax Code of the Russian Federation.
Deadlines for submitting individual entrepreneurs’ reports in 2019: accountant’s calendar and table
The accountant's calendar for individual entrepreneurs for 2019 includes deadlines for submitting tax returns and employee reporting. Regardless of the tax regime, all employers submit reports to the following funds:
- deadline for submitting reports to the Pension Fund of Russia (form SZVM) - every month, no later than the 15th day of the month following the reporting month;
- the deadline for submitting reports to the Social Insurance Fund (form 4-FSS) is quarterly, no later than April 20, July 20, October 20, January 20 in paper form, for electronic reporting no later than the 25th, respectively.
In addition, there are reports for employees, which are submitted to the tax office: a single calculation of contributions; 2-NDFL; 6-NDFL. See the full employer reporting calendar for all modes.
We have collected the deadlines for submitting tax reports and paying taxes for individual entrepreneurs in 2019 under different regimes in a table.
Mode | 1st quarter | 2nd quarter | 3rd quarter | 4th quarter |
advance payment | advance payment - 25.07 | advance payment - 25.10 | declaration and tax at the end of the year |
|
UTII | declaration - 20.04, quarterly tax - 25.04 | declaration - 20.07, quarterly tax - 25.07 | declaration - 10.20, quarterly tax - 10.25 | declaration - 20.01, quarterly tax - 25.01 |
Unified agricultural tax | advance payment for half-year - 25.07 | declaration and tax year results - 31.03 |
||
BASIC | 2. advance payment for personal income tax - 15.07 | 2. advance payment for personal income tax - 15.10 |
PSN payers do not submit a tax return, and the deadline for paying the cost of the patent depends on.
Accounting software for individual entrepreneurs
For those who decide to do their own accounting, we recommend free online accounting from Tinkoff. This program allows you to conduct accounting for individual entrepreneurs online. Open a current account with Tinkoff Bank and receive for free:
- release of KEP as a gift
- 2 months of account maintenance free of charge
- reminders about due dates and payments
- automatic filling of the declaration
We hope that our step-by-step instructions on how to conduct accounting for individual entrepreneurs yourself in 2019 answered all your questions.
- What documents should an individual entrepreneur have?
- Accounting for individual entrepreneurs - rules and features of independent reporting under different tax regimes Primary documentation for individual entrepreneurs
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