How to do the bookkeeping yourself for your PFA

Because the process is relatively simple and involves completing only a few tax documents, you don't need to hire a certified accountant for any of the legal entities, so you can do the bookkeeping yourself.

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But to do the bookkeeping for your PFA yourself, you are required to complete three essential documents:

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1. Register - Receipts and Payments Journal

2. Inventory Register

3. Tax Register

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1. Receipts and Payments Journal

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As it is also called, this document keeps a record of all receipts and payments made by the PFA in the previous month, listed in chronological order in RON (if the transaction is in another currency, the exchange rate at the time of the transaction is used) and accompanied by a supporting document, such as a tax receipt or a receipt.

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Among the receipts to be entered in the register are:

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- Amounts derived from the activity of the PFA

- Personal sums in cash or from bank transfers added by you at the start of or in the course of your business

- Bank or other loans

- Compensation, sponsorships, donations

- Non-reimbursable funds or grants

- Other receipts (e.g. tax refunds)

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Among the payments to be entered in the register are:

- Payments from the PFA activity

- The return of personal sums, in cash or by bank transfer, which were added by you at the beginning or in the course of your PFA activity

- Bank or other loan repayments

- Other payments (e.g. fines)

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Remember!

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Only concrete transactions that have been completed are listed in this document. If you have issued an invoice but it has not been received, it is not recorded in

Receipts and Payments Register.

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2. Inventory Register

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If only concrete transactions were recorded in the Receipts and Payments Register, the Inventory Register records the assets (equipment with a value of more than 2500 RON, inventory items, stocks) and liabilities of the PFA at the beginning of the activity, each year at the end of the financial year, as well as at the end of the activity of the legal entity.

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Three columns must appear in the Inventory Register, as follows:

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- The first column should indicate the current operation number in chronological order

- The second column to name the group of inventoried items

- The third column to indicate the inventory value

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3. Tax Register

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This document records the taxable income and deductible expenses for determining the PFA's Annual Net Income.

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The amounts that you originally entered in the Receipts and Payments Journal now have to be grouped according to the source of income, respecting the CAEN codes, which can be a bit complicated at first. Even if your PFA carries out activities in the same field, such as the food industry, and processes both meat and vegetable products, the specific codes for each activity are different.

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You should also bear in mind that you may not find all the entries in the Journal of Receipts and Payments in this document because they are not all taxable or deductible.

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The difference between the total taxable income and the total deductible expenses is the PFA's Net Annual Income. With this information, you can complete the Single Declaration by 25 May 2022, the only tax document that must be submitted to ANAF by a PFA in the real system, which has no employees and is not liable for VAT. The Single Declaration will be used to determine the amount of social security contributions due.

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If the PFA has recently been set up, it is mandatory that the Single Declaration is submitted within 30 days and must contain only the Estimated Total Income and Estimated Total Deductible Expenses for the current year.

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Accounting as an Authorised Natural Person can sometimes give you a headache. Not only do you need to know what tax documents you have to fill in, but also what taxes you have to pay, and this depends on which tax category you fall into: based on income rules or on the actual system. Find out more here about how Banqup can help you get organised much more easily with all your financial documents and send them to your accountant in real time.