Who is required to keep accounting records in the Russian Federation?
The answer to this question is given by Art. 2 of the Law “On Accounting” dated December 6, 2011 No. 402-FZ. Those required to maintain accounting in the Russian Federation include:
- organizations engaged in commercial and non-profit activities;
- government agencies, local governments, management bodies of extra-budgetary state funds (including territorial ones);
- Bank of Russia;
- Individual entrepreneurs, private practitioners;
- Representative offices and divisions of foreign and international organizations located in the Russian Federation.
Thus, formally, individual entrepreneurs are classified as economic entities that are required by the state to keep accounting records.
However, in paragraph 2 of Art. 6 of Law No. 402-FZ IP are mentioned among those who may not do this. In this case, a mandatory condition must be met: the entrepreneur keeps records of income and expenses and other taxable items and physical indicators related to his activities.
So what is meant by keeping records mentioned by the legislator in paragraph 2 of Art. 6 of Law No. 402-FZ, and which entrepreneurs are required to keep accounting, and which individual entrepreneurs can rightfully not bother themselves with accounting?
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.
What is meant by accounting for income and expenses?
The concept of “accounting for income and expenses” is used in the Tax Code of the Russian Federation, which obliges taxpayers, in cases established by law, to account for income, expenses and their taxable items (subclause 3, clause 1, article 23 of the Tax Code of the Russian Federation). Thus, individual entrepreneurs may not maintain accounting records if they maintain tax records.
Let us remind you that entrepreneurs can apply the following tax regimes in their activities:
- simplified tax system;
- OSNO;
- Unified Agricultural Sciences;
- UTII;
- PSN.
Let's consider which of these regimes provide for accounting for income, expenses and other objects of taxation.
Vocational Training Center "Stolitsa" (SAO)
Address: metro station Sokol, Volokolamskoe highway, 2, (GIDROPROEKT Institute), 4th floor in the CAPITAL Center Website: https://www.szao-kursy.ru Telephone: , +7 (495) 120-60- 27 Cost: from 4600 rub. up to 50900 rub.
The training center specializes in both training from scratch and retraining and certification of specialists. Groups study at a convenient time: morning, afternoon, evening or weekend.
Upon completion of training, graduates receive a standard certificate.
Accountant courses for beginners and professionals:
- Accounting courses for beginners 62 academic hours.
- Accountant courses with the study of 1C: Accounting 8 for beginners 86 academic hours.
- Accountant courses with the study of 1C: Accounting 7.7 for beginners 46 academic hours.
- Accounting courses under a simplified taxation system 18 academic hours.
- Courses for professional accountants 124 academic hours.
- Courses for chief accountants and financial managers on the preparation of financial statements in international standards (IFRS) 46 academic hours.
- International accounting system GAAP USA 38 academic hours.
- DipIFR courses (Dipifr-rus) - preparation for the ACCA exam 90 ac.ch.
- Courses 1C: Accounting 8 22 academic hours.
- Courses 1C: Salaries and personnel management 8 (salaries and personnel) 18 academic hours.
- Courses 1C: Accounting 8 application of the simplified taxation system 18 academic hours.
- 1C courses: Enterprise 8 (Integrated solution 1C) 62 academic hours.
- Accounting courses for managers 18 academic hours.
- Advanced training courses for professional accountants 46 academic hours.
Should individual entrepreneurs keep accounting records using the simplified tax system?
Let us turn to the clarifications of the Russian Ministry of Finance (letter dated July 26, 2012 No. 03-11-11/221), whose specialists interpret this situation as follows.
According to Art. 346.24 of the Tax Code of the Russian Federation, simplified persons are required to record their income and expenses in the book of income and expenses of organizations and individual entrepreneurs using the simplified taxation system. Its form and procedure for registration were approved by order of the Ministry of Finance of Russia dated October 22, 2012 No. 135n.
Consequently, the obligatory condition for accounting income and expenses by simplifiers, established by paragraph 2 of Art. 6 of Law No. 402-FZ will be observed, which means that they may not keep accounting.
The following articles will help you fill out the specified tax register correctly:
- “How to keep a book of income and expenses under the simplified tax system (sample)?”;
- “Book of accounting for income and expenses under the simplified tax system in 2018–2019.”
Training center at the Metropolitan Institute of Economics and Finance (CAO)
Address: metro station Oktyabrskaya (ring), Leninsky Prospekt, building 6, building 7, floor 2 Website: https://www.moscow-kursy.ru Phone: (495) 212−14−47 Cost: from 4600 rub. up to 50900 rub.
At the training center you can not only acquire a new profession as an accountant, but also improve your qualifications, as well as take preparation courses for the ACCA exam to obtain the DipIFR-rus diploma and become familiar with the international accounting system GAAP USA.
After completing the courses, you receive a state-issued certificate with qualifications, which will give you the right to get a job.
Accountant training programs:
- Accounting courses for beginners 52 academic hours.
- Accountant courses for beginners with 1C training: Accounting 8 72 academic hours.
- Fundamentals of accounting for managers of organizations 16 academic hours.
- Accounting courses under the simplified taxation system (USNO) 16 academic hours.
- Accounting under a simplified taxation system with 1C 8 32 academic hours.
- Courses for professional accountants - preparation and certification 124 academic hours.
- Advanced training for professional accountants 40 academic hours.
- Courses 1C: Accounting 7.7 24 academic hours.
- Courses 1C Accounting 8 20 academic hours.
- International accounting system GAAP USA 32 academic hours.
- IFRS courses 40 academic hours.
- Courses 1C: Subsystem IFRS 8 20 academic hours.
- IFRS courses with 1C training: IFRS 8.0 subsystem 60 academic hours.
- Courses on transformation of Russian reporting into IFRS format 48 academic hours.
- Practical course on GAAP accounting using Quick Books. 20 academic hours
- Preparation courses for the ACCA exam to obtain the DipIFR-rus diploma 76 academic hours.
- Internal audit 40 academic hours
Do individual entrepreneurs keep accounting records on OSNO?
This situation is similar to the previous one (letter of the Ministry of Finance of Russia dated July 26, 2012 No. 03-11-11/221).
According to paragraph 2 of Art. 54 of the Tax Code of the Russian Federation, entrepreneurs working for OSNO take into account income and expenses for their commercial activities in the book of income and expenses and business operations of individual entrepreneurs, approved by order of the Ministry of Finance of Russia No. 86n dated August 13, 2002 and the Ministry of Taxes of Russia No. BG-3-04/430.
Read about the tax burden of individual entrepreneurs on the OSN here.
Thus, the condition for accounting for income and expenses (clause 2 of Article 6 of Law No. 402-FZ) is also met here. Consequently, individual entrepreneurs on OSNO, like simplifiers, are free to refuse accounting.
For a comparison of popular tax regimes for small businesses, read the article “What is the difference between the simplified tax system and the OSNO? What is more profitable?
Legal aspects of the activities of IT startups
When: from April 15
Cost: free
The course program is aimed at studying the most pressing issues that young companies face and the problem areas where the greatest risks for their development and the start of successful commercial activities are concentrated. Topics include: building relationships with investors, protecting intellectual property, resolving a corporate conflict, complying with mandatory regulatory requirements, and others. All topics are adapted to the business characteristics of IT startups.
Do I need accounting for individual entrepreneurs on the Unified Agricultural Tax?
The answer to this question can also be found in the explanations of the financial department (letter of the Ministry of Finance of Russia dated August 27, 2012 No. 03-11-11/257).
According to paragraph 8 of Art. 346.5 of the Tax Code of the Russian Federation, in order to determine the tax base for the Unified Agricultural Tax, entrepreneurs are required to take into account income and expenses in the book of income and expenses of individual entrepreneurs applying the taxation system for agricultural producers. Its form and design rules are enshrined in the order of the Ministry of Finance of the Russian Federation dated December 11, 2006 No. 169n. In addition, entrepreneurs on the Unified Agricultural Tax from January 2020 are required to pay VAT. To account for VAT transactions, individual entrepreneurs must maintain a purchase book and a sales book, as well as issue invoices.
An individual agricultural producer has the right to apply the exemption and not pay VAT. Read more about the procedure for applying for benefits in the material “Is there a VAT exemption for agricultural producers in 2020?” .
And again we come to a similar conclusion: individual entrepreneurs on the Unified Agricultural Tax can refuse to do accounting.
The article “Rules for maintaining a book of income and expenses under the Unified Agricultural Tax” will help you correctly draw up an accounting book for individual entrepreneurs on the Unified Agricultural Tax.
This video is unavailable
The individual entrepreneur is required to keep records. Accounting for beginner individual entrepreneurs - in simple words about the complex. IP business - in simple words for beginners. Individual entrepreneur taxes - everything an entrepreneur should know. Taxation of individual entrepreneurs 2020 - the basics for beginner individual entrepreneurs in simple words. Taxes and taxation of individual entrepreneurs - accounting for beginner individual entrepreneurs. An individual entrepreneur’s business is impossible without accounting. Individual entrepreneur taxes and tax accounting. Separate accounting of individual entrepreneurs is carried out when combining several tax regimes. Accounting and taxation of individual entrepreneurs in simple words for beginner individual entrepreneurs. IP business and IP taxes - everything everyone should know! Accounting for individual entrepreneurs - the basics.
We recommend reading: Divorce when there are children and a mortgage, the wife is against
Friends! Please support my project! Tell your friends and acquaintances about my YouTube channel https://www.youtube.com/channel/UCxqU. Ask them to subscribe to my channel and support me ❤ Share my videos on your social networks
