FINANCIAL AND TAX ACCOUNTING FOR SELF-EMPLOYED ACTIVITIES

Abstract

This article uses the methods of analysis and synthesis of laws and scientific sources, case studies and other methods to provide an overview of the concept and essence of self-employment and shows how self-employment is defined in different foreign countries. The different accounting principles are outlined, the criteria that must be met in order to apply the accrual or cash accounting principles, and the taxes that must be paid in the course of an self-employment activity. The calculation, declaration and accounting for personal income tax, value added tax and national social security in the context of self-employed activities are described. The article also highlights the most common transactions related to self-employment, such as sales, the recording of transactions related to CSI and SSI contributions, and analyses when it is better to apply the deduction of actual expenses or to opt for an amount equal to 30 % of the income for the tax period. Accounting for self-employment activity must be carried out in a responsible, transparent and efficient manner, while at the same time fostering the entrepreneurship of the population and the economic progress of