The procedure for preparing financial statements in 2020-2021

Timely submission of financial statements is the “fly in the ointment” that can ruin the mood of a novice businessman.

In order not to be subject to penalties from the fiscal authorities, you need to monitor systematic changes in tax legislation and strictly adhere to the deadlines and regulations for filing declarations and reports.

An experienced specialist can help you avoid problems with the Federal Tax Service. However, competent preparation and submission of financial statements to regulatory authorities will not be cheap for the business owner or individual entrepreneur.

If you prepare your financial statements yourself and for free, you can mess things up and run into fines.

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The annual subscription fee for using the service is less than the monthly fee of a simple accountant, while the functionality of the program allows you to carry out all the work of the accountant yourself.

Each stage of work is accompanied by tips, and in difficult cases you can always seek a free consultation from service experts.

The composition and schedule for preparing financial statements directly depends on what taxation scheme the LLC or individual entrepreneur uses. For “simplifiers” or “imputers”, the legislation provides for a minimum set of reports.

Features of preparing financial statements for individual entrepreneurs and LLCs

The peculiarity of drawing up a BO by an individual entrepreneur is that its content and volume depend on:

• number of employees;
• tax regime.

In the case when an individual entrepreneur works for the simplified tax system, he does not have to do accounting at all. This means that he does not constitute a BO.

LLCs that also use the simplified tax system have the right to simplified methods of accounting and preparation of financial statements. The forms of reporting documents are approved by Ministry of Finance orders. And although they are less voluminous than for enterprises on OSNO, you need to fill out both a balance sheet and reports on financial results and the intended use of funds.

All other organizations must keep accounting records and prepare financial statements in full. The reports are signed by the individual entrepreneur, the signature must be deciphered and the date when exactly the document was drawn up is indicated. Even if the balance sheet is filled out in a simplified form, the equilibrium rule continues to apply - the amounts for assets and liabilities are absolutely identical.

Important! When an individual entrepreneur begins to develop a business, he invests his own or borrowed funds into it. A correctly drawn up balance sheet, even in a simplified form, will present a complete picture of where they were used and what the financial condition is now.

What does the company face if the deadline is missed?

If you fail to submit your report on time, punishment will inevitably come. Fortunately, its value does not depend on the balance sheet, as happens in the case of a late tax return.

If you do not send the balance to the tax authorities or do it with a delay, you will be fined 200 rubles. (clause 1 of article 126 of the Tax Code of the Russian Federation). Administrative punishment is also possible for officials under paragraph 1 of Art. 15.6 of the Code of Administrative Offenses of the Russian Federation in the amount of 300–500 rubles.

For balances not submitted to the statistical authorities (until 2021), the amount of punishment in the case of a violation committed for the first time was 10,000–20,000 rubles. for officials and 20,000–70,000 rubles. for legal entities (clause 1 of article 13.19 of the Code of Administrative Offenses of the Russian Federation). For repeated offenses, fines increased respectively to 30,000–50,000 and 100,000–150,000 rubles. (clause 2 of article 13.19 of the Code of Administrative Offenses of the Russian Federation).

You can find out about fines for other accounting violations in the Guide from ConsultantPlus. Trial access to the legal system is provided free of charge.

BO forms for enterprises with simplified tax system

For enterprises with simplified taxation system, BO forms are provided in a somewhat simplified form:

1. Balance sheet.
2. Income statement.

The simplified balance sheet includes:

• data for the previous two years plus the reporting year;
• assets and liabilities in a summarized form.

Example. In a complete balance sheet, the asset consists of two sections. In simplified form - from 5 lines. All components of intangible assets are summarized in one paragraph. The liability includes six lines instead of three sections in the full balance sheet.

The financial results report reflects:

• revenue and other income;
• costs;
• tax and net profit that remains at the disposal of the company.

Information is provided for two years.

Important! If a small enterprise needs additional decoding when compiling a BO, then the simplified form is not suitable for them, since the columns in it are strict.

Preparatory work

1. Primary data verification.
2. Inventory of the organization's obligations.
3. Inventory of all property.
4. Clarification of the assessment of property balance sheet items.
5. Checks of all accounts.
6. Closing all accounts.
7. Balance reforms.
8. Formation of the turnover sheet.

These works are very important, as they are the foundation for correct reporting. Therefore, more attention should be paid to them.

Providing financial statements in electronic form

BO, like tax reporting, can be provided in the form:

1. Paper.
2. Electronic.

The first method involves mailing or personally delivering all completed reports on paper pages. Read also the article: → “Reporting of individual entrepreneurs on UTII without employees in 2021”

BO online is provided:

1. Through the EDF operator via TCS - telecommunication channels. They represent a system through which you can send both tax and accounting reports, bypassing their reflection on paper.

This method has many advantages, although there are some disadvantages:

1. Through the Federal Tax Service website.

To access the site you need:

• register and get an ID;
• install a special program on your PC;
• obtain a Certificate regarding the public key of the personal signature (chief accountant and manager);
• install a special root certificate of the Federal Tax Service of the Russian Federation, as well as a list of already revoked certificates.

You can't do it without a PC specialist.

This method has the same advantages and disadvantages as the previous one.

1. Use one of the services for sending reports online.

Choosing an online reporting service

The Internet is filled with offers to use services that will ensure proper record keeping and timely sending of financial statements.

The table contains data on several of them:

Drawing up a BO is not an easy and responsible job. The ability to submit it via the Internet, using high-quality services, greatly facilitates the work of entrepreneurs and accountants.

How to fill in lines

Let's consider which accounts and how are used when forming the balance, in accordance with the Chart of Accounts of the Accounting Office (Order of the Ministry of Finance No. 94n).

Assets

This is how the 1st section of the balance sheet asset “Non-current assets” is filled in:

1. Intangible assets (IMA), page 1110. Dt 04 – Kt 05. Research and development costs of R&D are not shown.
2. Results of research and development, page 1120. Dt 04 regarding R&D.
3. Intangible search assets (PA), page 1130. Dt 08 – Kt 05 (both accounts are taken in terms of intangible PA).
4. Material PA, page 1140. Dt 08 – Kt 02 (both accounts are taken in terms of material PA).
5. Fixed assets, line 1150. Dt 01 – Kt 02 (excluding depreciation of profitable investments in material assets).
6. Profitable investments in mat. values, page 1160. Dt 03 – Kt 02 (excluding depreciation of fixed assets).
7. Financial investments, page 1170. Dt 58 – Kt 59 (only for long-term financial investments) + Dt 73/1 (only for long-term interest-bearing loans, account 73/1 - settlements with employees on loans issued).
8. Deferred tax assets (DTA), line 1180. Dt 09.
9. Other non-current assets, line 1190. Dt 07 + Dt 08 (except for exploration assets) + Dt 97 (costs with a write-off period of more than 12 months after the reporting date).

The procedure for filling out the 2nd asset section of the balance sheet “Current assets”:

1. Inventories, page 1210. Dt 10 + Dt 11 – Dt 14 + Dt 15 + Dt 16 + Dt 20 + Dt 21 + Dt 23 + Dt 28 + Dt 29 + Dt 41 – Dt 42 + Dt 43 + Dt 44 + Dt 45 + Dt 97 (for expenses with a write-off period not exceeding 12 months after the reporting date).
2. VAT on acquired assets, page 1220. Dt 19.
3. Accounts receivable, line 1230. Dt 46 + Dt 60 + Dt 62 – Dt 63 + Dt 68 + Dt 69 + Dt 70 + Dt 71 + Dt 73 (subaccount 73-1 is not taken) + Dt 75 + Dt 76 (reflected is excluded on accounts for VAT calculations on advances issued and received).
4. Financial investments (without cash equivalents), line 1240. Dt 58 – Kt 59 (only for short-term financial investments) + Dt 55/3 (account 55/3 - deposit accounts) + Dt 73/1 (only for short-term interest-bearing loans) .
5. Cash and cash equivalents, page 1250. Dt 50 + Dt 51 + Dt 52 + Dt 55 + Dt 57. The subaccount 50/3 and the balance on the subaccount 55/3 are not taken into account.
6. Other current assets, line 1260. Dt 50/3 + Dt 94.

Passive

This is how the 3rd section of the liabilities side of the balance sheet “Capital and reserves” is filled out:

1. Authorized capital (and its legally established varieties), page 1310. Kt 80.
2. Own shares purchased from shareholders, page 1320. Dt 81 (indicated in parentheses, deductible or negative indicator).
3. Revaluation of non-current assets, line 1340. Kt 83 (for the amount of revaluation of VNA).
4. Additional capital (without revaluation), line 1350. Kt 83 (without revaluation of VNA).
5. Reserve capital, page 1360. Kt 82.
6. Retained earnings (uncovered loss), page 1370. Kt 99 + Kt 84 (or Dt 99 + Dt 84, taken in brackets; Kt 84 - Dt 99, Kt 99 - Dt 84 if a minus is received, taken in brackets).

The procedure for filling out the 4th section of the liabilities side of the balance sheet “Long-term liabilities”:

1. Borrowed funds, line 1410. Kt 67 (debt repayment period as of the reporting date is not more than 12 months).
2. Deferred tax liabilities (DTL), line 1420. Kt 77.
3. Estimated liabilities, page 1430. Kt 96 (only liabilities with a maturity period of more than 12 months after the reporting date).
4. Other liabilities, page 1450. Kt 60 + Kt 62 + Kt 68 + Kt 69 + Kt 76 + Kt 86 (long-term debt on all accounts).

The procedure for filling out the 5th section of the liabilities side of the balance sheet “Short-term liabilities” is given:

1. Borrowed funds, line 1510. Kt 66 + Kt 67 (if the account has debt with a repayment period of no more than 12 months as of the reporting date).
2. Accounts payable, line 1520. Kt 60 + Kt 62 + Kt 68 + Kt 69 + Kt 70 + Kt 71 + Kt 73 + Kt 75 + Kt 76 (only short-term debt, VAT recorded in the accounting accounts on issued and received payments is excluded advances).
3. Deferred income, line 1530. Kt 98.
4. Estimated liabilities, page 1540. Kt 96 (only liabilities with a settlement period not exceeding 12 months after the reporting date).
5. Other liabilities, page 1550. Kt 86 (current liabilities only).

Balance line codes are entered in accordance with Order of the Ministry of Finance No. 66n dated 02/07/10, as amended. from 04/19/19 (clause 5). They are listed in Appendix No. 4.

The above diagram uses standard accounts, usually used to fill out certain balance lines. The company's accounting policy and working chart of accounts may make changes to the standard scheme.

OKVED code: why is it needed?

Tax representatives use the OKVED code in calculating industry average tax burden, average wages, etc. Rosstat uses OKVED for statistical observations.

The financial statements indicate the actual OKVED code. It must correspond to the type of activity that the organization actually engaged in during the reporting year. If the actual OKVED code differs from the OKVED codes specified in the Unified State Register of Legal Entities, the organization must send an application to the inspectorate to make changes to the register.

Who is allowed to submit paper 2-NDFL for 2021?

2-NDFL certificates for 2021 can be submitted in paper form only by those employers whose number of employees is up to 10 people inclusive. The Federal Tax Service of Russia mentions this in letter dated December 9, 2021 No. BS-4-11/ [email protected]

Federal Law No. 325-FZ of September 29, 2021 amended the Tax Code. According to the changes, the minimum number of employees at which personal income tax reporting and calculations of insurance premiums must be submitted to the Federal Tax Service in electronic form has been reduced from 25 to 10 people. This means that fewer organizations and individual entrepreneurs will be able to report for 2021 on paper.

Please note that it is also necessary to prepare a register for 2-NDFL certificates.