The current legislation obliges each organization, regardless of the type of activity and the size of the company, to maintain its accounting records and provide appropriate reporting. For small businesses, some indulgences allow you to switch to a simplified system. Small companies have been able to use simpler algorithms in accounting and reporting, which allows them to reduce costs and optimize the organization's staff.
In what cases is simplified accounting applicable?
To apply the simplified system, the organization must belong to a certain group specified in the current documents. The criteria are spelled out in the relevant Federal Law, as amended. Companies that have the opportunity to switch to a simplified accounting system include:
- Partnerships and companies of economic type.
- Consumer cooperatives and production enterprises of a similar structure.
- Farms of the peasant-farm type.
- Entities engaged in individual entrepreneurial activities.
These organizations must be registered with the tax authorities in the form prescribed by law. If the organization does not meet any criteria outlined in the Federal Law, the simplified system cannot be applied.
Benefits of a simplified accounting system
The transition to such a reporting system can significantly simplify accounting procedures and reduce staff costs. The best option is to transfer functions to outsourcing, for example, to the "Capital Tax Advice". Simplified accounting makes it possible to get rid of the following standard accounting standards:
- Instead of the accrual method, income and expenses are calculated on a cash basis.
- Registers are taken into account according to a simplified scheme.
- Accounting for permanent and temporary differences, expressed in the maintenance of accounts 09 and 77, becomes redundant.
- The group of accounts is replaced by one, synthetic.
- The formation of reserves is not required, as well as the revaluation of fixed assets and intangible reserves.
- Various commercial and administrative expenses are included in the cost of goods and are recognized as expenses of the current year.
The main requirements for small businesses are the reliability and validity of the reports provided. The documentation must reflect truthful information about the results of the enterprise and financial indicators.
Recommendations of the Ministry of Finance on bookkeeping
To switch to a simplified system, a qualified accountant who thoroughly understands the current legislation is required. The Ministry of Finance offers qualified assistance to interested organizations by posting model recommendations on the website. Organizations can keep accounting records in full, using a combined register or the SMP property register.
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The Ministry of Finance recalls that each SME does not have the right to work without an accounting policy and must document all business transactions. The choice of accounting system is carried out based on the desire of the company or individual entrepreneur and can be both general and simplified.
"Capital Tax Consultation" can organize support for individual entrepreneurs and organizations. Using our services, the client gets the opportunity to refuse the services of their accountants. At the same time, we guarantee high-quality accounting of transactions and timely reporting. The experience and knowledge of our specialists allow the customer to forget about the difficulties and problems associated with financial statements.
