Accounting of sole proprietorships

Keeping Accounting for Individual Entrepreneurs (IEOs)

Keeping accounting for individual entrepreneurs (IEOs) is an important aspect of doing business in Ukraine. Proper accounting organization allows you to avoid fines, simplify tax reporting, and ensure effective financial management. Let's consider the main legal aspects, terms of service, and tips for self-accounting.

Legal stages of keeping accounting for individual entrepreneurs

• Legal consultation on keeping accounting for individual entrepreneurs
• Registration of an IEO: Before starting accounting, it is necessary to register an IEO with the relevant state authority. When registering, it is important to choose the right taxation system (general or simplified).
• Obtaining a QES (Qualified Electronic Signature): An electronic signature is required to submit reports in electronic form.
• Opening a bank account: It is recommended to open a separate bank account for business settlements.
• Registration with the tax authority: Depending on the chosen taxation system, it is necessary to register with the tax authority at the place of registration.
• Keeping accounting books: For the simplified system, it is assumed to keep a book of income or income and expenses (depending on the group). For the general system, more detailed accounting is required.

Conditions under which the service can be provided

Legal assistance in accounting for an individual entrepreneur can be provided if:

• Availability of all registration documents: A lawyer or accountant can provide services only if the individual entrepreneur has a registration certificate, CEP and other necessary documents.
• Access to information: For high-quality performance of services, access to bank statements, primary documents and other financial data is necessary.
• Determination of the taxation system: The accountant must know which taxation system the individual entrepreneur operates on in order to keep records correctly.
• Timely provision of documents: The customer must promptly provide all necessary information for reporting.

Conditions under which the service cannot be provided

Lawyers for accounting of individual entrepreneurs may refuse to provide services if:

• Lack of documents: If the individual entrepreneur does not have a registration certificate or other important documents, the accountant will not be able to correctly perform accounting.
• Inaccurate information: Providing false data may become an obstacle to the provision of the service.
• Violation of deadlines: If the individual entrepreneur does not submit the necessary documents on time, the accountant will not have time to prepare the report.
• Non-compliance with legislation: If the individual entrepreneur’s activities do not comply with current legislation (for example, illegal trade), services cannot be provided.

How to figure it out on your own

• Getting to know the legislation: Study the laws and regulations that regulate the activities of individual entrepreneurs. Find out the current list of documents for accounting for an individual entrepreneur.
• Using online services: There are many platforms for accounting, such as "Privat24 for Business" or online accounting.
• Consultation with a specialist: To get started, you can get a one-time consultation from an accountant or lawyer.
• Process automation: Use programs for automatic tax calculation and reporting.

Frequently asked questions

• What documents are needed for accounting? To keep accounting for an individual entrepreneur, you must have the following documents: registration documents (extract or extract from the Unified State Register), certificate of taxpayer registration (USR or TIN). Documents confirming income and expenses are also required: acts, invoices, receipts, checks, bank statements. If the individual entrepreneur is a VAT payer, tax invoices are attached. It is necessary to keep employment contracts and other documents related to employees, if any. All documents must be in good condition for inspection by tax authorities.
• How much does legal advice on accounting for an individual entrepreneur cost? The cost of legal advice depends on the complexity of the interview and qualification of a lawyer.
• How much does it cost to keep accounting records for an individual entrepreneur? The price of keeping accounting records for an individual entrepreneur depends on the taxation system and the volume of transactions.
• What documents are needed for keeping accounting records for an individual entrepreneur? To keep accounting records for an individual entrepreneur, documents confirming registration are required: an extract from the Unified State Register, a copy of the TIN. Documents on income and expenses are also required: invoices, receipts, checks, bank statements. If there are employees, employment contracts, applications for employment and dismissal, and time sheets are attached. For VAT or SSC payers, appropriate reports must be kept and invoices and other tax documents must be kept. All documents must be stored in accordance with the requirements of the law.
• How to find a lawyer for accounting records for an individual entrepreneur? You can find a lawyer through professional platforms such as "Diya.Business" or online legal services. It is useful to seek recommendations from familiar entrepreneurs who have already used such services. You can also find a specialist through accounting or law firms that work with individual entrepreneurs. It is important to check the reviews, certificates, and work experience of a lawyer before starting cooperation. An interview or trial consultation will help determine whether a specialist is suitable for your needs.

What does the cost of a lawyer's or accountant's services depend on?

Keeping accounting records for an individual entrepreneur Ukraine 2024 is the key to the successful functioning of your business. Decide whether to keep records yourself or contact specialists, depending on your level of knowledge and available time. The cost of accounting for a sole proprietorship depends on the following factors:

• Volume of work: The more transactions, the higher the price.
• Complexity of the tax system: Accounting on a common system is more expensive due to the greater amount of work.
• Scope of activity: Some types of business require specific accounting, which can affect the cost.
• Experience of the specialist: Experienced specialists often set a higher price for their services.