What is an income and expense account and making our income and expense account accurate and easy to understand?
Accounting for income and expenses is the basis of doing business. It is always necessary to do this if anyone is doing business in the name of an individual. It is not registered as a legal entity or, simply put, pays taxes like an individual. According to the law, these operators Choose from two methods of deducting expenses in calculating income tax to pay taxes: lump sum payment and actual payment. Which must account for income and expenses first
- Lump sum deduction of 40 and 60 percent: Choosing a lump sum deduction of expenses. This means that entrepreneurs do not need to submit income and expense accounts to the Revenue Department. Expenses will be deducted in lump sum at a rate based on income.
2. Actual expense deduction: Selecting this second type Entrepreneurs must record income and expenses in order to be eligible to deduct actual expenses.
An income and expense account is a recording of income and expenses in a store’s business. To show money coming in and going out in stores and used as information for various financial matters. Including filing income taxes as well.
- Income is money or income that comes in from doing business. Including other benefits that comes from doing business, such as interest money received from funds/standing loans
- Expenses are money that is paid out. For use in running a store Whether it is the cost of sales Or expenses incurred, simply put, are money paid out.
How to make an income and expense account easy to understand and accurate
1. Make an income-expense form.
We can choose to fill in 2 formats: “Daily total form” and “Item-by-item form” which must contain at least as many items and text according to the format specified by the Revenue Department. which entrepreneurs can add channels to suit their business
2. Made in Thai language, easy to understand.
Preparation of income and expense accounts Must be prepared in Thai or if prepared in a foreign language Must be accompanied by Thai language. Make the form clear and easy to read and understand. The income and payment fields are clearly separated.
3. Record income-expenses within 3 days.
If money is paid or received in that business Must hurry and record in the income-expense account within 3 days to avoid forgetting.
4.Accounting documents
Preparation of income and expense accounts There must be supporting documents for recording the report such as receipts, tax invoices, etc. as evidence. Can be checked retrospectively
5. Summary of accounts every month.
The final step is that the entrepreneur must summarize the income and expenditure accounts at the end of every month in order to know the operating results of the business in that month. and to calculate net income for further personal tax payments.
This is just a preliminary step so that operators can make income and expense accounts easily, conveniently, and easily read and understood. But if you want experts to ease the burden on entrepreneurs who have expertise and experience, we recommend the accounting office CL Account, which is an accounting company that accepts audits, sets up online accounting systems, has knowledge and expertise. Financial accounting and tax accounting that has an important purpose in accounting Accepting accounting audits and accepting company registrations. By focusing on the quality of the work Including accuracy Honesty and speed of work is important With a team of accountants professional auditor Including legal advisors and lawyers who have a lot of knowledge and experience in registering companies very well. CL Account has been certified to ISO standards (9001:2015), thus giving confidence to service recipients that The most efficient system has been set up.
