Accounting for individual entrepreneurs: Use in ensuring the reliability of tax calculations

Abstract

Currently, there is a situation where individual entrepreneurs (hereinafter referred to as sole proprietors) are faced with the practical need to maintain accounting records of their activities, and there is no theoretical justification for the organization, methodological features and application of accounting in the economic literature. The purpose of the article is to eliminate gaps in the field of methodological support for accounting for sole proprietors through a reasoned justification of the need for its maintenance, as well as systematization and demonstration of practical accounting features to ensure the reliability of tax calculations within the framework of the taxation system used by an individual entrepreneur. The object of the research is the types of IP activities in the context of the general, simplified and patent taxation systems. The author substantiates the reasons that encourage sole proprietors to maintain accounting records in relation to ensuring the reliability of tax calculations of their activities. The analysis of the options for the interaction of accounting and tax accounting is carried out, depending on the taxation system used by the individual entrepreneur, the types of his activities and the presence (absence) of employees. A differentiated approach to the completeness of accounting for sole proprietors is proposed, depending on the types of their economic activities and the applicable taxation system. Specific examples of the use of accounting data in ensuring the reliability of tax calculations and their optimization by an individual entrepreneur are demonstrated. The practical application of the results of the conducted research will allow individual entrepreneurs to decide on the option of completeness of accounting, which will be sufficient to ensure the reliability of their tax calculations.