How to fill out the record book of income of the FOP in Ukraine

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The accounting book is a unique tool that is required from individual entrepreneurs (PPOs) working under the simplified taxation system to keep records of their activities. Basically, it is an electronic or paper register designed to store important information required for reporting to tax authorities. It is a tool that allows FPOs to monitor their finances and fulfill their tax obligations with efficiency and accuracy.

For Individual Entrepreneurs (PPOs) in Ukraine, keeping an income accounting book is mandatory. This book is an important tool for financial management and reporting to government agencies. The process of filling out the income accounting book has its own rules and features.

Rules for filling out the income accounting book

Start and End

The income accounting book must be opened and completed according to the tax calendar. The beginning and end of the accounting period are determined in accordance with tax legislation.

Clearness and systematicity

All income must be entered in the accounting book systematically and clearly. Each entry must contain information about the date, amount and source of income.

Deciphering income

It is important to decipher the nature of each income. For example, is it income from the sale of goods, provision of services, interest on deposits, etc.

Retention of documentation

All documents confirming received income must be kept for a certain period of time in accordance with the law. They may be needed during audits by tax authorities.

Relevance of information

The information in the income accounting book must always be up-to-date. This means that income should reflect only those transactions that occurred on the date of their entry.
Display of returns for goods and amounts from unregistered KVED:

Return for goods

A product return is a transaction where a customer returns a purchased product and receives a corresponding compensation. In the income accounting book of the FOP, such transactions should be reflected in the appropriate section intended for registration of transactions for the sale of goods.
For example, if the income accounting book has a “Sale of goods” section, then a return for goods can be entered in this section, where information about the return date, amount, reason for return and the connection with a specific check or invoice will be indicated.

Amounts from unregistered KVED

KVED (code of the type of economic activity) is a special code that determines the type of activity of the enterprise.
If you received income from an unregistered KVED (type of economic activity code), you can enter this amount in the income accounting book, noting the relevant date and nature of this income. It is important to clarify that such operations may have certain tax consequences, so it is better to contact tax specialists for advice. Such income can be shown in the “Other income” or “Other transactions” section of the income book. In the corresponding entry, information about the date of receipt of this income and the nature of the transaction (for example, “Receipt of income from an unregistered KVED”) should be added to the specified amount.
Completing the income accounting book is an important element of the financial activity of any FOP. Completing this procedure in accordance with the rules will help you avoid problems with the tax authorities and ensure proper accounting documentation for your business.

The importance of adding the payment systems maintenance commission to the income book

When running a business, especially in the field of e-commerce, there are various payment systems such as WayForPay, Fondy and others that provide payment processing services. However, in addition to the amount of payments received, it is important to consider the commission that these systems keep for their services. Adding this fee to your income ledger is a necessary step to accurately reflect your business’s financial situation.

• Correct display of costs

The fee charged by payment systems should be reflected as an expense in the income ledger. This is important in order to get a clear picture of all financial transactions and ensure accurate profitability of your business. In addition, the correct display of the commission will help to avoid misunderstandings with the tax authorities in the future.

• Display methods

There are several methods for showing the commission in the income ledger. One way is to include the commission in the total amount of income received. This means that the amount actually credited to you will be less because the payment system will keep its share.

Another method is to separately display the commission as an expense. In this case, the amount credited to you is shown as income, and the commission – as an expense. This approach allows you to clearly separate income from expenses and provides greater transparency in the financial report.

• Regular updating of the accounting book

It is important to regularly update the income accounting book, taking into account new transactions and commissions. This will help avoid backlogs and ensure accurate financial reporting. In the case of using payment terminals (acquiring), transaction fees should also be included in the income accounting book.

Adding a payment systems maintenance fee to your income ledger is a necessary step to ensure the accuracy and transparency of your business’s financial statements. This helps to avoid tax misunderstandings and ensures that all financial transactions are properly reflected. Do not forget to update the accounting book in a timely manner and consult with specialists in the field of taxation if you have questions about the correct display of commissions.

It is always better to have a clear and accurate income book to be able to respond in time to changes in the financial condition of your business and to comply with the requirements of tax law. Remember the importance of timely and accurate record keeping and, if necessary, seek professional help.