(hereinafter referred to as the Accounting Law) establishes the obligation to maintain accounting records by business entities. However, the Law also provides exceptions to this rule. In this case, it is necessary to take into account special requirements depending on the chosen taxation system, be it a general system or a special regime (patent, unified agricultural tax, imputation or simplified taxation). How an individual entrepreneur can keep accounting records, tax records, and whether he is obliged to do this, we will tell you in this article.

Tax accounting for individual entrepreneurs under the simplified tax system in 2017

The law provides for several mandatory requirements for entrepreneurs in terms of proper accounting of income, expenses, and business transactions. To meet these requirements, entrepreneurs must:

• keep books of income and expenses;
• draw up primary documents when carrying out business transactions.

Accounting books for different taxation systems are approved differently. Entrepreneurs on the general system use the accounting book, approved. By order of the Ministry of Finance of the Russian Federation and the Ministry of Taxes of the Russian Federation dated August 13, 2002 No. 86n. At the Unified Agricultural Tax, entrepreneurs use an accounting book, approved. By order of the Ministry of Finance of the Russian Federation dated December 11, 2006 No. 169n. In the patent system, the accounting book was approved for entrepreneurs by Order of the Ministry of Finance of the Russian Federation dated October 22, 2012 No. 135n. For those who are simplified, the form of this book was approved by the same Order of the Ministry of Finance of the Russian Federation dated October 22, 2012, as for individual entrepreneurs in the patent system.

As for primary accounting documents, they are needed to confirm the facts of economic life. The Accounting Law establishes a number of mandatory requirements for these documents, since on their basis business entities confirm the size and validity of their expenses and income. Thus, expenses that are not confirmed by relevant primary documents will not be taken into account by tax inspectors for tax purposes.

These requirements for accounting and drawing up primary documents are common to all entrepreneurs, including simplifiers. For violation of these requirements, the entrepreneur may be held accountable. With accounting the situation is different.

Accounting for individual entrepreneurs on the simplified tax system

Entrepreneurs can conduct accounting by general rules. But maintaining accounting in this manner will inevitably be associated with corresponding costs. An entrepreneur will have to either hire an accountant on staff or purchase accounting support services. It is also possible to do your own bookkeeping, but to do this you need to have fairly extensive knowledge in accounting.

Individual entrepreneurs often overlook the fact that record keeping helps the business grow. More often you can hear the opinion that accounting for individual entrepreneurs is an unnecessary extra burden. The result of such an attitude may be missed opportunities or even losses. In this article we will tell you why individual entrepreneurs need to keep accounting records.

Entrepreneurs without a legal entity must plan their business, including in terms of calculating and paying taxes. Therefore, from the very beginning of your business, it is important to choose the appropriate tax regime. Individual entrepreneurs can apply the following tax regimes:

• simplified tax system (income 6%);
• simplified tax system (income minus expenses 15%);
• OSNO (general mode);
• Unified Agricultural Tax (Unified Agricultural Tax);
• UTII (single tax on imputed income);
• Patent.

The law allows individual entrepreneurs not to keep accounting records, but obliges them to take into account income and expenses. Entrepreneurs in the patent system may not keep a book of income and expenses, but must take into account the indicators on which the tax depends, for example, the number of employees, working hours, retail store area, etc.

Does all this mean that individual entrepreneur accounting is not needed? To answer this question you need to know the following:

1. Type of activity of individual entrepreneur;
2. Are there any hired employees?
3. Taxation system;
4. Revenue volume;
5. Volume of document flow;
6. The number of employees;
7. Number of counterparties;
8. Terms of agreements with counterparties.

As you can see, making a decision on accounting requires a thorough analysis of the business. We .

Accounting for individual entrepreneurs in 2019

Law No. 402-FZ allows individual entrepreneurs not to keep accounting records. However, entrepreneurs are not exempt from tax accounting; it is needed to calculate the tax base and taxes. It is important to correctly prepare tax reports, submit them on time and pay taxes on time. It is necessary to periodically make tax reconciliations to protect the business from fines and blocking of current accounts. Very important aspect accounting is personnel records and reporting on insurance premiums for employees. If an individual entrepreneur has a cash register, then additional responsibilities arise for maintaining a cash book and a cashier-operator book. Also, entrepreneurs must issue primary documents for counterparties that comply with legal requirements.

We have come to the main conclusion - accounting is necessary, but for individual entrepreneurs it should be simpler and more accessible, for this there is.

Using these, an entrepreneur can keep records independently. He can also hire an accountant or turn to an outsourcing company for help.

How to do your own accounting as an individual entrepreneur

How can an entrepreneur keep records on his own? Below are our recommendations.

1. Make a plan of income and expenses, it is needed to calculate taxes.
2. Select the appropriate tax regime. The choice of system determines the tax burden, the composition of reporting, the timing of tax payment, and the complexity of accounting. If you don't know how to choose a mode, we recommend that you get it.
3. Learn what kind of reporting and in what time frame you need to submit according to the chosen mode.
4. Be prepared for additional workload if you plan to hire workers - the amount of reporting will increase. You will need to submit quarterly reports to the tax office, pension fund, and social insurance fund. Also, individual entrepreneurs and their employees submit a special report to the pension fund on a monthly basis and are required to maintain and store personnel documents.
5. Familiarize yourself with the tax payment deadlines; this will help you avoid fines and account blocking.
6. Keep the primary documentation and contracts; the tax office may request them even after the closure of the individual entrepreneur.

Accounting for entrepreneurs using the simplified tax system

Individual entrepreneurs using simplified taxation submit one report per year - a declaration according to the simplified tax system. It is formed on the basis of KUDiR (book of income and expenses). The deadline for submitting the declaration is April 30, and within the same period the tax for the year must be paid minus advances.

You can do your accounting on a simplified 6% basis yourself, because you only need to take into account the funds received from customers and record them in the income book. At the end of each quarter, simplifiers pay an advance, which is taken into account when paying the final tax for the year.

Under the income minus expenses (15%) regime, accounting is much more difficult, and you also need to have original documents confirming expenses. The tax office may not recognize expenses if the documents are drawn up incorrectly or the expenses are not justified. With a simplified tax system of 15%, income is taken into account using the cash method, and expenses using a mixed method, i.e. expenses must not only be paid, they must be incurred. For example, if you purchased an item from a supplier and paid for it, this is not enough to expense the purchase. In this case, only that part of the goods that you shipped to the buyer will be spent on expenses. As you can see, accounting in this case becomes dramatically more complicated and cannot be avoided.

Accounting for entrepreneurs on OSNO

Individual entrepreneurs rarely choose the general mode due to complex accounting and large quantity reporting. If an entrepreneur has chosen this mode, then he cannot do without accounting. In addition to the VAT return, the entrepreneur will need to generate a 3-NDFL report.

Accounting for UTII

If an individual entrepreneur does not have employees, then under the UTII regime, accounting records may not be maintained. Under this regime, a fixed tax is paid, which does not depend on the income and expenses of the entrepreneur. But as soon as hired workers appear, you will need to keep records, generate reports on contributions and maintain personnel records. And here you can’t do without an accounting program.

Keeping records of individual entrepreneurs on a patent

This regime was introduced specifically for individual entrepreneurs. This is the most simple system taxation - no need to submit reports, just maintain KUDiR. The amount of tax (patent) is calculated by the tax office itself, and an individual entrepreneur can buy a patent not for a full year, but for any number of months, from 1 to 12. The patent system can only be applied to certain types of activities, their list is established by law.

For example, a patent can be acquired by entrepreneurs who provide services:

• clothing repair and household appliances, jewelry;
• transportation of goods;
• dry cleaning;
• renovation of apartments, glazing of balconies;
• providing cars for rent to individuals;
• provision of catering services.

Accounting software for individual entrepreneurs

If you decide to keep records yourself, you can use the program; it is ideal for individual entrepreneurs and small businesses. What is its advantage? The fact is that you can always ask for and quickly solve any problem.

How to run an IP? For aspiring entrepreneurs, it is extremely important to understand this pressing issue. After all, everything that concerns him is related to finances, payment of fees and reporting. And every aspect of individual entrepreneur activity is connected with the tax office, whose representatives may have many questions for the entrepreneur if he does not fulfill the responsibilities associated with his status as a businessman. Therefore, it is worth talking about in detail how to properly conduct an individual entrepreneur.

Start

The first step is to register the individual entrepreneur itself. It is very simple, despite the fact that it often seems the other way around. Minimum package of documents required:

• Copy of Russian passport.
• Application for state registration according to form No. P21001.
• Receipt for payment of state duty (800 rubles).
• Application for transition to the selected taxation system (for beginners and small enterprises, the simplified tax system is recommended).

The most important thing at this stage is to accurately determine OKVED codes and fill out forms. There are publicly available samples for this. By focusing on them, you can definitely avoid mistakes.

When the documents are collected and the applications are drawn up, you can go to the tax office and submit them. Within three days, the USRIP entry sheet and the registration notice will be ready. And after this, you can delve into the topic of how to run an individual entrepreneur from scratch, for beginners.

simplified tax system

All inexperienced entrepreneurs are recommended to immediately switch to simplified system taxation. This is the first thing everyone who wants to know about how to run an individual enterprise must learn. For beginners, it will not be easy to understand the OSNO (general system), UTII and Unified Agricultural Tax. They are complex in terms of accounting and reporting. And the simplified tax system is good for the following:

• Increased limits. The simplified tax system is available to every entrepreneur whose annual income does not exceed 150,000,000 rubles.
• No penalties in the amount of the maximum payment as a penalty for late reporting.
• Can be used online services instead of regular cash registers. Through them, all sales data goes directly to the tax office, and this makes accounting easier.
• Both the founder and other representatives of the company can pay contributions.

But the most important advantage is that the tax return must be submitted not quarterly, but only once a year (but before April 30).

Fixed contributions

It is also necessary to talk about how to keep accounting for a start-up individual entrepreneur who has no employees. So, the first thing you need to remember is that every entrepreneur is required to pay fixed fees, even those who opened an individual entrepreneur for show and do not conduct business. These contributions go towards pension, health and social insurance. Since 2017, you need to pay them not to each fund separately, but to your tax office - according to the amended BCC.

To find out the budget qualification codes, you need to take your personal state registration number and go to the inspectorate.

What about the amount? Fixed contributions in 2017 are 27,990 rubles. Of this amount, 4,590 rubles go to compulsory medical insurance. And to the pension fund - 23,400 rubles.

If his income for the year exceeds the mark of 300,000 rubles, he will need to pay an additional 1% of the amount exceeding this limit.

Filling out the declaration

This is perhaps the most crucial moment. Every person who wants to understand how to start doing individual accounting needs to understand it. And here are the nuances you need to learn:

• Cost indicators are indicated in rubles, and kopecks are rounded. If there are more than 50 of them, then up to 1 rub. Less? Then the pennies are completely discarded.
• There is only one number, letter or sign per cell.
• The cells that are considered empty for the entrepreneur are filled with dashes. There shouldn't be any voids.

You need to treat filling out the declaration with the same responsibility as writing an application for registration of an individual entrepreneur. IN in this case It’s also simple if you’re careful.

In the first half title page information about the enterprise is indicated. Some nuances that seem incomprehensible to beginners can be discussed in more detail.

There is an item called “Adjustment number”. A person filing a return for the year must put a zero there. In this case, the number “34” is entered in the “tax period” field. If the year is unfinished (during the liquidation of an individual entrepreneur or when changing a special regime), “50” is indicated. And in the paragraph “at the location of registration”, an individual entrepreneur must put the number “120”. That's all you need to remember.

How to calculate taxes?

The second section of the declaration is devoted to income. Information on revenue must be filled out on an accrual basis. The corresponding fields are intended for this - first quarter, half year, 9 months and year (otherwise known as the tax period).

In simple terms, a person must enter numbers in these cells that reflect the amount of his income. Let's say 240,000, 480,000, 720,000 and 960,000 rubles, respectively. In the “rate” paragraph, the percentage designation is indicated (in this case, since we are talking about the simplified tax system, it is equal to six).

On the same page, only below all the listed items, you will notice a small table of contents labeled “Amount of calculated tax.” The person calculates it himself and writes it into similar cells. The formula is simple: the amount of income is multiplied by 6% (this will be 0.06 in mathematical value). Referring to the previous example, it would look like this: 240,000 x 0.06 = 14,400 rubles. This result is recorded in the appropriate cell. 14,400 rubles is the amount that a person will need to pay as tax for the first quarter. For a year with a profit of 960,000 rubles, it will be equal to 57,600 rubles.

In general, it is not difficult to calculate. You just need to remember the formula - this is the main thing for beginners who do not know how to start doing individual accounting and preparing reports.

What to do if there is no profit?

For some beginners this is a fear, but for others it is a pressing issue. In any case, every person interested in how to run an individual entrepreneur needs to know the answer. For beginners, the instructions may seem complicated, but in reality everything is extremely simple.

You need to understand: even if there were no financial activities, you will have to report to the tax office. Conventionally, this is called submitting a zero declaration.

It is most convenient for those entrepreneurs who do not have staff. They simply hand over a “zero” tax, according to which their calculated tax is zero. It turns out that for the year, except for fixed contributions, they pay nothing. But those businessmen who have registered workers will have it worse. They can only reduce the tax base by 50% of the amount of contributions.

How to fill out the “zero” blank? The first sheet is as stated earlier. But all the cells of the second section (dedicated to taxes and profits) are filled with dashes.

What do you need to submit besides the declaration?

This is also necessary for every person who wants to understand how to run an individual entrepreneur to know. Step-by-step instructions for beginners can help you figure it out quickly. And here is a brief summary of what, in addition to the declaration, entrepreneurs with employees will need to provide:

• Personal income tax reporting (employee income is reflected).
• Data on the average headcount (number of employees on average for a certain period).
• Reporting on insurance contributions to extra-budgetary funds.

The most important thing in this case is to submit all documents within the specified deadlines. 6-NDFL are provided quarterly, SZV-M every month, 2-NDFL once a year (no later than the first of April), 4-FSS and data on the average headcount until January 20 of the year following the reporting year.

Procedure

So, above we briefly talked about how to run an individual entrepreneur. For beginners, the methods may seem complicated, but in reality, dealing with all the “paper” matters is easy if you show responsibility and care.

What about payment? There is such a thing as paying tax in advance. This can be done before 25 days have passed from the end of the reporting period. In this case, all advance payments made by the entrepreneur will be offset against the tax.

But you can do it differently. That is, pay tax at the end of the year. This must be done before April 30 of the year following the expired reporting period.

Speaking about how to run an individual entrepreneur for beginners, it is important to note that there are three ways to pay taxes. You can deposit funds through the client bank, by generating a payment order or by issuing a receipt for non-cash payments.

Responsibility for violations

Why is it so important to figure out how to do accounting for a beginning individual entrepreneur? Because there are serious fines for an irresponsible attitude towards your new activity and status as an entrepreneur. For example, if a person is late filing a return by 10 days or more, transactions on his account may be frozen. This is stated in Article No. 76 of the Tax Code of the Russian Federation.

Plus, late delivery entails a fine, which varies from 5% to 30% of the amount of unpaid tax. This is stated in Article No. 119 of the Tax Code of the Russian Federation.

If a person decides not to pay tax at all, he will be subject to a fine of 20-40%. You can verify this if you pay attention to Article No. 122 of the Tax Code of the Russian Federation.

It’s also important to remember that application of the simplified tax system is not a reason why you can forget about calculating, withholding and transferring personal income tax from employees’ salaries.

Documentation

There is one more nuance that cannot be ignored when talking about how to run an individual entrepreneur for beginners (a sample declaration, by the way, is provided above). As practice shows, representatives of the tax inspectorate like to visit enterprises for inspections. Therefore, it is very important to treat all documents with care. For example, if an entrepreneur owns a store, then he needs to store:

• Cash papers.
• Agreements with suppliers of services and goods, lessors, wholesale buyers.
• Personnel documents (if there are employees).
• Primary papers.
• Agreement with the bank and account statements.

All documents need to be systematized by categories and periods. If you urgently need to find the right paper, then such foresight will play into your hands. You also need to learn how to use the notorious online services. They are more reliable than notes on paper and allow you to save on an accountant.

BASIC

When talking about how to run an individual entrepreneur for beginners, it is worth finally paying a little attention to the nuances associated with the notorious general taxation system. It is useful for newcomers to the field of entrepreneurship to find out what pitfalls it is fraught with, and why it is worth choosing the simplified tax system.

Firstly, with OSNO you need to keep a ledger of expenses and income. And this is a whole bag of unnecessary troubles. This Book must include detailed information about all transactions related to finance. Why? Because it is on the basis of the Book that a declaration is subsequently drawn up and sent to the inspectorate at the end of the reporting period.

Secondly, the state will have to give not 6%, but 13%. And every three months you will need to pay 18 percent VAT. It is also impossible to avoid making payments to the state treasury if a person’s enterprise has a plot of land or a vehicle.

Thirdly, every three months you will have to send a statement to the social and pension funds.

Even this small list of OSNO specific features is enough to understand why the vast majority of individual entrepreneurs are on the simplified tax system. Even LLCs are trying to switch to “simplified”. Indeed, if you can legitimately simplify your life if you have such an opportunity, why not take advantage of it?

Individual entrepreneurs using the simplified tax system must keep records of income received and expenses incurred to form the tax base for tax under the simplified tax system. In addition, if it is planned to hire hired personnel to conduct business, then the entrepreneur must also keep personnel records of his employees.

Managing individual entrepreneurs in a simplified manner

Keeping a simplified account by an entrepreneur from scratch begins with determining the object of taxation: “income” or “income minus expenses” (Clause 1 of Article 346.14 of the Tax Code of the Russian Federation). To do this, a calculation is made of the estimated income and expenses for the tax period and the determination of the tax burden. Read more about which object to choose under the simplified tax system.

Simplified accounting for individual entrepreneurs

A simplified individual entrepreneur has the right not to keep accounting records (subclause 1, clause 2, article 6 of the Law of December 6, 2011 N 402-FZ). If the entrepreneur nevertheless decides to conduct accounting, then it will be necessary to develop an accounting policy and consolidate the selected accounting methods in it.

Moreover, if an entrepreneur falls under the criteria of a small business, then he has the right to use simplified methods of accounting and generate simplified financial statements (clause 4 of article 6 of the Law of December 6, 2011 N 402-FZ).

Tax accounting for individual entrepreneurs in a simplified manner

The procedure for maintaining tax accounting for individual entrepreneurs using a simplified procedure is determined in the accounting policy for tax purposes (Article 313 of the Tax Code of the Russian Federation). In particular, the accounting policy reflects the selected object of taxation, the procedure for determining income and expenses, accounting for losses, the method of separate accounting of income and expenses (when combining several tax regimes), the form and methods of maintaining tax accounting.

Simplified tax accounting is maintained in the book of income and expenses (KUDiR) (Article 346.24 of the Tax Code of the Russian Federation). The KUDiR form, as well as the procedure for filling it out, were approved by Order of the Ministry of Finance of Russia dated October 22, 2012 N 135n.

Personnel records for individual entrepreneurs in a simplified manner

The entrepreneur maintains personnel records in the same manner as the organization. Personnel records contain information both separately for each employee and for the entire staff. It also includes accounting for the number and movement of personnel.

If an individual entrepreneur belongs to a small business, then he has the right to refuse to apply local regulations containing labor legislation (for example, internal labor regulations, regulations on wages, regulations on bonuses, shift schedule) (Article 309.2 of the Labor Code of the Russian Federation). Wherein employment contracts with employees will need to be concluded according to a standard form approved

Accounting for individual entrepreneurs Gusarova Yulia How to properly conduct accounting for an individual entrepreneur on the simplified tax system and what is the maintenance of accounting for an individual entrepreneur on the simplified tax system, UTII, Patent and OSNO with and without employees? Step-by-step instruction, deadlines for submitting individual entrepreneurs’ reports according to the calendar in 2020.

According to the Law “On Accounting” No. 402-FZ, accounting for individual entrepreneurs is not mandatory. This brings great relief to entrepreneurs, because it means that they do not need to post all transactions to accounts, create balances and make entries. However, it cannot be said that individual entrepreneurs do not need accounting at all. According to the same law, an entrepreneur can do without accounting if he has organized accounting of income, expenses and other taxable items.

Where does the organization of accounting for individual entrepreneurs begin?

Even at the business planning stage, some measures should be taken that will subsequently make it possible to organize business activities and record their indicators at the appropriate level.

Select the tax regime in which you will operate. It depends on him how the accounting for the individual entrepreneur will be kept.

Study the rules for organizing the accounting of income, expenses and other performance indicators. It is important to take into account that accounting for individual entrepreneurs on the simplified taxation system, general and other taxation systems has significant differences.

To independently acquire knowledge and skills in this area, you can use specialized services and programs.

Accounting for individual entrepreneurs in 2020

You need to understand that when it comes to a private entrepreneur, you cannot talk about accounting in the classical form. The work of an accountant in this case consists mainly of tax accounting and includes the following tasks.

Determination of income, expenses and other objects of taxation in order to correctly calculate and pay taxes, as well as providing tax authorities with the opportunity to check how accurate the calculations are and whether there are overpayments or underpayments.

Calculation and payment of taxes accrued in accordance with the selected taxation system.

Preparation and submission of reports on tax payments.

Calculation and payment of taxes, as well as contributions for employees, if the individual entrepreneur uses a hired labor.

Organization of storage of documents confirming transactions performed.

What exactly the accounting department needs to do for individual entrepreneurs directly depends on the chosen tax regime and whether the entrepreneur has employees. According to the current legislation, in addition to tax accounting, it is also mandatory for individual entrepreneurs to maintain procedures for accounting for employees and prepare reports on them. This is another accounting task. In addition, you should deal with primary documentation, bank and cash documents, and also perform a number of other tasks.

Entrepreneurs often get confused different types accounting and all of them are generalized, called accounting. This is an incorrect interpretation, but it has already come into use and is widespread today. Mentions of accounting in relation to individual entrepreneurs can be heard very often. However, you should understand what is actually hidden behind this formulation, i.e. what the individual entrepreneur does (in the simplified tax system this will be one accounting department, but in the general and other taxation systems it will be completely different).

When answering the question of how to keep records of individual entrepreneurs (using the simplified tax system, special tax system and other tax regimes) in 2020, one should first of all mention professionalism. Accounting for an individual entrepreneur using the simplified tax system or any other system can be handled by a hired accountant or an outsource company. With a small number of operations, the costs of paying for the services of permanent specialists may be unjustified. If you are ready to organize your own accounting, we can help with this. To simplify the task of accounting for individual entrepreneurs, we suggest using the step-by-step instructions we have prepared.

How to do your own accounting as an individual entrepreneur

1st stage. Calculate what income your business is expected to receive and what possible expenses it will incur. This information is needed to determine the tax burden.

2nd stage. Determine the tax regime that suits you best. You can choose a general taxation system or one of the special ones (patent, simplified tax system, unified agricultural tax or UTII). This choice determines what the tax burden will be.

3rd stage. Study what tax reporting should be under the chosen regime. Current forms can be found on our website.

4th stage. Decide whether you will hire workers or do it yourself. The simplest accounting for individual entrepreneurs is on the simplified tax system without employees. When hiring someone, you should understand that you are acquiring the status of an employer and will have to submit rather complex reports, the composition of which does not depend on the taxation system or the number of employees. In 2020, employers submit reports to the Pension Fund of the Russian Federation, the Social Insurance Fund and the tax inspectorate. In addition, it is necessary to ensure the preparation and secure storage of personnel documentation.

5th stage. Review the tax calendar for your system. If you fail to submit your report on time or pay your taxes on time, this will result in a fine, account blocking and other negative consequences.

6th stage. Determine how accounting services will be carried out. It is easier to organize accounting for individual entrepreneurs using the simplified tax system “Income”, PSN and UTII, since even if there is a hired workforce, these modes are considered simple. An individual entrepreneur can handle such accounting on his own. If you work on the general taxation system, the simplified taxation system “Income minus expenses” or carry out many operations, it is better to use the help of an outsourced accountant.

7th stage. Ensure registration and storage of all related economic activity papers, in particular incoming correspondence, primary documentation, reporting on the use of cash registers, personnel documentation, bank statements, contracts, documents that record expenses, etc. The Tax Service can check the documents of an entrepreneur even within three years after withdrawal from registration records.

Accounting for individual entrepreneurs on OSNO

When choosing common system taxation, the organization of accounting will be the most difficult compared to maintaining accounting records for individual entrepreneurs using the simplified tax system and other special tax regimes. It is necessary to submit a 3-NDFL declaration based on the results of activities for the year, as well as quarterly reporting on value added tax. In some cases, a 4-NDFL declaration is also required. The most difficulties arise with VAT. Accounting is especially complicated due to the need to reimburse input taxes and obtain deductions. To make it more convenient to make tax payments and transfer insurance premiums, we recommend opening a bank account.

Accounting for individual entrepreneurs using the simplified tax system

An individual entrepreneur accountant has much less hassle under the simplified tax system than under the general taxation regime. You only need to submit one annual return. Simplified accounting is carried out differently depending on which taxation option the individual entrepreneur has chosen: “Income”, on which 6% is paid, or “Income minus expenses”, on which 15% is paid. It’s not difficult to figure out how an individual entrepreneur on the simplified tax system “Income” should keep records of his performance indicators. In this case, the expenses do not affect taxation in any way.

Let’s move on to consider the issue of how to keep an individual entrepreneur’s accounting using the simplified tax system “Income minus expenses.” The main complication compared to the simplified tax system with the “Income” object is that you need to collect documents that confirm the entrepreneur’s expenses. Among them, for example, there may be cash receipts, account statements, payment orders, etc. The tax base is reduced by their amount, so tax authorities recognize declared expenses only if correct design all supporting documents. The procedure for recognizing expenses under the simplified tax system with the object “Income minus expenses” is almost identical to that provided for under the general taxation regime. In order for certain expenses to be subtracted from the amount of income when determining the amount of tax, they must be justified from an economic point of view and be present in the list contained in Article 346.16 of the Tax Code.

All income and expenses are recorded in a special Income and Expense Accounting Book. Moreover, simplifiers who pay 6% take into account only income, while 15% payers must additionally take into account expenses.

The tax return form under the simplified tax system for 2019 for individual entrepreneurs has been posted.

Deadlines for submitting individual entrepreneur reports in 2020

The accountant's calendar for an individual entrepreneur contains deadlines for filing declarations and reports. Thus, business entities using hired labor must submit such reports as employers, regardless of the chosen taxation system.

To the Social Insurance Fund (form 4-FSS) - once a quarter. The deadline for submitting reports depends on its form. The paper form must be submitted until January 20/April/July/October, and the electronic form must be submitted no later than the 25th of the same months.

To the Pension Fund of the Russian Federation (SZV-M, SZV-stazh) - monthly until the 15th day of the month following the reporting month and until the first of March of the following year, respectively.

In the Federal Tax Service - quarterly 6-personal income tax until the end of the month following the reporting period, and a quarterly unified calculation of contributions until the 30th of the same period. Annual reporting, 2-personal income tax and a report on the average headcount are also submitted, but in 2018 this process has already been completed.

The tax deadlines that must be adhered to until the end of 2020 are shown in the table.

When working under the patent regime, declarations are not submitted, and the period for payment of the cost of the patent is determined based on the duration of its validity.

Maintaining accounting records for individual entrepreneurs using the “My Business” service

Online accounting is a convenient program that will become an effective assistant for you in accounting for business results under any taxation system.

You will no longer need the services of an in-house or third-party specialist to perform such tasks. You can handle all operations yourself. Calculations are carried out automatically, after which reports are filled out and sent to the relevant departments. The system also acts as a personnel officer, processing Required documents. At the same time, each step you take is accompanied by hints, and the program makes sure that you do not make a mistake. To gain access to the service and personally experience all its benefits, you just need to register.