How to keep records of an individual entrepreneur

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An individual entrepreneur engaged in business activities in Russia must maintain accounting records. According to the Law "On Accounting", an entrepreneur without a legal education must exercise control over income and expenses. The order of delivery of financial statements depends, first of all, on the chosen taxation system.

Instruction manual

According to the legislative act, individual entrepreneurs can apply a common taxation system, simplified and UTII. The accounting system depends on the selected system. Suppose you are using OSNO. In this case, you must pay personal income tax (13%) of the profit. To calculate it, keep a book of income and expenses. You also need to calculate and pay VAT (18%). The tax is calculated based on the revenue and cost of production, that is, 18% multiplied by the amount of goods sold and reduced by the VAT that you paid when purchasing goods, materials, raw materials, etc. Use the sales book and the purchase book to account for the amounts. When applying the general taxation system, you are required to pay insurance contributions to the pension fund.

In order to report on all accrued and paid amounts, you must submit reports to the inspection within the time period established by Russian legislation. For example, to show all contributions, fill out and submit to the Federal Tax Service a tax on personal income tax in the form of 3-NDFL. To report on VAT, make a declaration and submit it to the inspection. Reports should also be shown to both the FIU and the FSS.

In the event that you use a simplified system, select one of the objects of taxation: income (6%) or income reduced by the amount of expenses (15%). Reflect all income and expenses in a special book. You must also pay a single tax on a quarterly basis, for this, calculate the advance payments, and at the end of the year the tax itself. Pay it minus previous payments for the year. Pay insurance contributions to the pension fund on a quarterly basis.

Not later than April 30, file a single tax return with the tax office. You should also report on pension, insurance and social contributions.

Individual entrepreneurs who use UTII must pay a single tax on imputed income on a quarterly basis (15%). As in previous systems, you must calculate and transfer insurance contributions to the FIU.