Rules for single entry accounting

Written by: Bridgewest

Rules_for_single_entry_accountancy.jpgThe rules for single entry accounting have been changed starting March 2014 and taxpayers must observe some essential rules. The new requirements are not substantially different from the previous ones and, to some extent, they even simplify the process for some taxpayers.

Who must perform single entry accounting?

According to Order no. 170/2015 issued by the Ministry of Public Finances, the following types pf taxpayers must perform single entry bookkeeping: 
- natural persons and associations, without legal personality, whose income is subject to income tax under the Tax Code and whose annual income is determined within a real system, based on the data registered by an accountant and it is obtained in one of the following ways, through: economic activities, liberal professions, intellectual property rights, by rental and leasing property or through agricultural, forestry and fishing activities;
- persons or legal entities that, through their incorporation documents, through special laws or other regulations are required to perform single entry accounting, except for non-profit legal persons.
Individuals who perform accounting activities may use the forms stipulated in the Order, according to the specific activities they perform. Accountants can also use other financial accounting forms. Our accountants in Bucharest can help you fill these forms and observe the specific rules for filing.

Requirements for single entry accounting

Single entry accounting must be kept in Romanian and, by using the national currency and any economic and financial operation, must be recorded at the time of its performance in a justificatory document. These documents must contain essential information, like details about the economic and financial operation and about the person that is documenting the operation.
Special rules apply for drawing up economic and financial documents - no erasures or alterations are allowed and no blank pages. Errors are to be corrected by cutting the text or numbers with a vertical line and writing the correct version on top of the error.
Certain justificatory documents cannot contain any error corrections. Our accountants in Bucharest can help you submit these necessary documents. You can contact us if you are looking for professional accounting services in Romania