The application of bookkeeping is the obligation of all companies engaged in business activities. The recording of income, expenditures, movement of assets, and other various monetary transactions is carried out according to certain rules. In some cases, companies are entitled to keep a light bookkeeping system. It is worth knowing who can depart from the classic scheme of recording results in the enterprise, and how such an order works.
Who has the right to keep simplified accounting
To conduct accounting, the lightweight system is applied by firms that belong to one of the following categories:
- entities belonging to small businesses;
- Non-profit organizations that meet the definition of № 7-FL of 12.01.1996;
- Residents of Skolkovo who meet the criteria of № 224-FL of 28.09.2010.
Entities classified as small businesses are economic organizations, joint stock companies, partnerships and farms, partnerships and cooperatives of various kinds. The number of employees of a facility that qualifies under the above categories for the annual reporting period is less than one hundred people. Revenues must be less than eight hundred million rubles annually. It is possible to prove involvement in these associations by providing an extract from the register of entrepreneurship. In order to be included in the number of business entities with access to the light version of accounting, a company may not have more than 25% of its charter capital invested from the budget and public funds. It must not have more than 49% of funds contributed by foreign companies owned by businessmen in Russia.
In addition to the list of criteria that allow some organizations to keep simple accounting, there are restrictions that do not allow a small business to enjoy the privileges, even if it fits the conditions described above. Simple accounting is not available to the following categories :
- whose results are audited by an auditor under the law;
- economic activities within cooperatives in the construction, agricultural and credit sectors;
- Micro-enterprises engaged in granting loans to the population;
- enterprises operating on behalf of the state in the public sector or within political parties;
- lawyers and notaries, consulting law offices, and bar associations;
- enterprises registered as foreign agents.
Under the parameters of the mandatory audit are enterprises that meet the following criteria:
- belong to the category of joint-stock companies, or have securities inside the stock exchange;
- are engaged in activities related to finance;
- have annual revenues of over 800 million rubles;
- have assets of more than 399 million rubles, which are reflected.
It can be concluded that there are two steps to obtain information about the possibility of applying the simplified accounting. The first stage is to determine the compliance with the permitted scope of work, and the second stage is to exclude those to whom such reporting is inaccessible.
For example, any bank must undergo a mandatory audit of its detail, which means that it will not be able to use the lightweight method of recording the results of financial activity.
Why simplified accounting options are needed
Businesses that have access to simple accounting documentation under the system under consideration differ in parameters and indicators of activity. This option can be used by a small company with revenues of less than 15 million rubles per year and a staff of up to 15 people, or a larger enterprise with a team of 100 people and revenues of more than 100 million rubles.
Since facilitated recording is used by so many different organizations, the law provides for several varieties of reporting and recording of the final results. There are recommendations developed jointly by the Russian Ministry of Finance and the Institute of Professional Accountants and Auditors. They divided businessmen into different categories, giving them the opportunity to choose the appropriate variety of documenting and recording the results of financial activity.
Full form of simplified accounting
Simplified methods of accounting with full reporting are recommended for those who, despite their relationship to small businesses, approach the performance of large and medium-sized companies. Most often, such businesses have a large assortment of goods, regularly make deliveries to counterparties and perform multi-step varieties of settlements.
This type of internal reporting is very similar to the classic version. The only difference is that the business can use a reduced chart of accounts and waive the rules of individual RAS. It is mandatory for an entrepreneur with the form of paperwork under consideration to reflect in it:
- data on all tangible assets in account 10 “Materials”, abandoning items 7 and 11;
- information on the costs of production and sale of products, which are reflected in account 20 “Basic Production”;
- count the number of manufactured products in account 41 “Goods” without using account 43 “Finished goods”;
- recording of non-cash finances in account 51 “Settlement accounts”, cash receipts and expenses are recorded in category 50 “Cash”;
- settlements with suppliers and contractors, own personnel, excluding wages and salaries are made only through account 76 “Settlements with different debtors and creditors”;
- facts of the entrepreneur’s capital are reflected in category 80 “Authorized capital”;
- The results of the operation of the company in terms of money are recorded in the account 99 “Profits and Losses”.
Presentation of a light variant of representation of results of activity of business, allows small companies to refuse from a number of RAS:
- abandoning the showing of cash reserves except for doubtful debt obligations;
- arrangements for construction tasks should be recorded as ordinary gains and losses in the organization’s accounts;
- valuation of fixed and intangible assets;
- full transfer of selling and management costs to the cost of the current period;
- recording all liabilities as other expenses of the enterprise;
- revaluing investments as valuables that do not have a fixed market price;
- maintain different types of documentation for internal purposes and for the needs of the tax authorities as a single system;
- write off any errors from last year’s statements in the other income and expense sections without publishing them.
Abbreviated form of simplified accounting
Simplified methods of accounting under the abbreviated form takes place with the help of a shortened chart of accounts. In this case, it will be possible to enter all the information about the office in a single document – the book of accounting. There is a single format for such a book, but entrepreneurs can develop their own version and use it to reflect the parameters after its approval in accounting policy. The entrepreneur may independently choose this way of recording the results of financial activity. The Ministry of Finance of the Russian Federation advises using it for offices that have less than 30 financial transactions each month.
A simple form of accounting
Simplified methods of accounting according to the simple form differ from the previous variants by the absence of the system of accounts and double entry of information. This variant of entering data on economic results may be used by small firms with up to fifteen employees, with revenue not exceeding 119 million roubles and non-commercial subjects. Foreign agents cannot use this recording of economic activity results.
Here it is important to consider not only the size of the company, but also the completeness of the information provided. A simple form of accounting will allow to reflect the real state of a business entity, if the following parameters are adhered to:
- the type of operation of the offices makes it possible to assess the results of the business by cash. In this case, the proceeds are accounted for at the time of the arrival of finances, and the costs in settlements;
- the enterprise does not own any fixed assets that are depreciated;
- all types of debts are closed during the period of their occurrence;
- the company does not have large property balances and loans that can significantly change the analysis of the financial condition of the business.
Simplified accounting statements
Any simplified accounting methods must be accompanied by regular submissions to the regulatory agencies. There are two formats available for small firms to submit them: a balance sheet and a simpler version of the economic bottom line report form. In addition, those involved in small firms have the right not to show in the documentation certain types of data that large organizations may reflect. Such information includes:
- data on third-party influences by third parties;
- indicators divided by subdivision parts;
- information on areas of work that are planned to be eliminated.
Simplified accounting procedures for a small organization should pursue the same goal as that of a large firm – to show the actual financial condition of the business.
If the simplified documentation does not reflect enough information to form a true opinion of the office, it is necessary to use forms of additional papers that will help detail the information.
Simplified accounting for the sole proprietorship
The law does not oblige individual entrepreneurs to report, but many use the simplified procedure of accounting for their own convenience. This is due to the fact that the tax recording of the results of economic activity does not allow you to see all the features of economic activity. Most often, those who are on the unified tax on imputed income or the licence-based taxation system resort to this kind of accounting. Entrepreneurs belonging to these categories must only record physical parameters.
Entrepreneurs need detailed accounting documentation if they are planning to take out a loan from a financial organization, or if they are preparing to attract investors to expand their activities. In addition, many large vendors focus on detailed documentation when choosing partners, and at auctions of government contracts they are required on a mandatory basis.
Individual entrepreneurs are not required to record transaction data; for this reason, they choose the right paperwork, not guided by annual income, staff size and other specifics.
Small businesses that qualify for simplified procedure of accounting must meet the criteria of federal law governing the size of the activity, its types, and the number of founders.
There are a total of 3 options for simpler recording of the results of entrepreneurship, the appropriate enterprise must choose given the peculiarities of its business activities.
Individual entrepreneurs are not legally required to keep accounting records, but most often use one of the types of accounting under consideration, which can be done in simple ways.