Bookkeeping regulations determine the rules to properly manage the bookkeeping system in the business’s books. The regulations and instructions are written simplistically and detail what records must a business manage and keep according to the nature of the business and its scope of activity. The purposes of these instructions are to establish a line of audit applied to the financial reports of the business which are then reported under these rules to the government authorities. Bookkeeping regulation do not apply to businesses that deduct income tax for more than 40%, don’t demand tax for expenses and the purchaser of the company’s products is liable for VAT (value added tax). Any deviation from the bookkeeping regulations may result to disqualification of the company’s books and as such to the taxation official, that’s why these instructions and regulations must be kept in a very precisive manner to avoid any unpleasantness with government tax authorities.
Every business is required to manage its books according to the relevant addition they are subject too, while examining the Scope of business cycle and the number of employees hired by him. The accounting system and records are to be reserved for a period of 7 years from the end of the current tax year or 6 years from submitting the annual report, the later of the two. Documents or contracts managed voluntarily by the assessee must be kept for a period of 3 years from submitting the reports. Hereby are the common book records that must be managed:
Recipes – recipes are vouchers indicating receiving funds from the payer, the date of issuance is at the payment without any delays. Non registration of receipts may be considered as a significant deviation from the bookkeeping requirements. A receipts must include the business’s details, the payers details and his residence, the total amount received, the essence of the deal or the invoice attributed, the issuance date, method of payment with exact details, all receipts must be kept in the receipt book and have a sequent numbering to all receipts.
Tax invoices- Tax invoices are produced when the goods or services are provided, and it is proof to the transaction and the deal being made. A tax invoice must include the business’s details, client details, tax invoice issuance date, details of the goods or services, number of sold units, price per unit, prices excluding VAT, VAT amount and total price including VAT. The tax invoice must be kept in the books and have a sequent numbering to all tax invoices.
Delivery certificate – the delivery certificate is to be produced to every shipment of goods from the business, including goods not sold yet. There is no requirement for managing delivery certificates in case a tax invoice is sent. The delivery certificate must include the business’s details, client details, delivery date, goods description, number of delivered units and the business’s signature. The delivery certificates must be kept in the books and have a sequent numbering to all tax invoices
Book of receipts and payments- This is in fact the business’s bookkeeping records, where all purchases and different buying transactions are written down. The Book of receipts and payments must be kept as a hard cover book or managed using a bookkeeping program modified for the business’s needs.
The Yanni Amir Accounting office will gladly assist you in managing your business’s bookkeeping needs.