How to deal with the current accounts that have been hung for a long time? Let Botu Finance and Taxation give you answers one by one, let's take a look at it together!
01. Other accounts payable for a long time
Due to the large amount of "other payables" and the long time of accounting, it is very easy to become the focus of tax inspection, and there are three main reasons:
1. The enterprise conceals its income and directly posts "other payables";
2. Borrowing funds through "other payables" after concealing income from off-the-books operations;
3. After obtaining false invoices and false deductions, the funds will be returned to the account and "other payables".
How to deal with it?
The Beijing Tax Bureau has answered this question in the "Policy Guidelines for the Practical Operation of Enterprise Income Tax": for the long-term unpaid payment of the enterprise, if the tax authorities have conclusive evidence, the unpaid amount will be treated as income.
On the other hand, it is up to the enterprise to decide whether to recognize revenue or continue to be recorded.
1. Return it in a timely manner
If the funds in the account are sufficient, it is recommended to return them in time, and the corresponding accounting treatment is as follows:
Debit: Other payables
Credit: Bank deposits
2. Debt forgiveness
Debt forgiveness requires the following supporting documents:
The corresponding accounting treatment is as follows:
Debit: Other payables
Credit: Non-operating income
3. Settle accounts by tripartite agreement
The three parties shall settle the accounts by signing a tripartite agreement, seal and sign each other, and they must be true and evidenced before they can be operated, and they cannot be hedged at will.
To put it simply, only when there is a triangular debt, can the tripartite agreement be used to settle the accounts, otherwise there will be not only debt risks, but also tax risks.
Debit: Other payables
Credit: Other receivables/receivables
4. Debt-to-equity swap
1. The shareholders' money can be converted into investment in the company, and the corresponding accounting treatment is as follows:
Debit: Other payables
Credit: paid-up capital
2. For individuals who do not occupy shares, the debt-to-equity swap belongs to capital increase and share expansion, and the corresponding accounting treatment is as follows:
Debit: Other payables
Credit: Paid-in Capital - Capital Reserve
02. Other receivables that have been posted for a long time
Other receivables are not a panacea, not a garbage can!
It mainly includes the following contents:
1. Various compensation and fines receivable. For example, the amount of compensation that an individual should pay for a loss suffered by an enterprise or the amount that an insurance company should compensate.
2. Various payments made to employees on behalf of employees.
3. Advances for other companies.
4. Rental of rental packaging receivable.
5. Reserve money for employees. For example, the company buys some fixed amount of reserves, and the travel expenses given in advance by business travelers.
6. Deposit paid by the company. For example, the company rents equipment and office space, or the deposit paid for packaging.
7. Transfer-in of prepaid accounts or other receivables.
Balances that have not been cleared for a long time
How to clean up the balance that has not been cleared for a long time?
1. Check the sub-accounts of other receivables first
For example, we can pay the employee's expenses in advance, check the invoice amount with the employee, check the invoice amount with the supplier who did not provide the invoice, and reconcile the transaction with the affiliated company...... Specific matters, specific and target person checks.
2. Determine the adjustment plan
Personal advances urge repayment, suppliers urge invoicing, and related companies exchange money to urge repayment.
3. If the loan cannot be repaid, another method will be established
If it is determined that the other party cannot issue invoices due to cancellation, revocation and other reasons, the income can be directly recognized; the repayment of personal arrears must be urged all the time; and the current payments between affiliated companies that cannot be repaid due to various reasons can be offset by signing an agreement to offset with other payables (also owed to affiliated companies).
4. Be sure to establish a ledger, analyze the age, clean up regularly, don't take too long, generally not more than three months, because there may not be any changes, it will be very troublesome to deal with, and it may even become bad debts if you don't come back, and lose the company's interests.
03. Long-term accounts receivable/payable
01. Accounts receivable
For accounts receivable that cannot be recovered for a long time, bad debt provisions should be made in accordance with the accounting standards for business enterprises, but not all bad debt provisions can be deducted before tax. For the bad debts of accounts receivable, if you want to deduct them before tax, you must do the following 5 points:
1. Bad debts have actually been incurred
According to Article 8 of the Enterprise Income Tax Law of the People's Republic of China, reasonable expenses actually incurred by an enterprise in connection with the acquisition of income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating the taxable income.
2. The account is overdue for 1 year or more than 3 years
According to <企业资产损失所得税税前扣除管理办法>Articles 23 and 24 of the Announcement of the State Administration of Taxation on Issuance (Announcement No. 25 of 2011 of the State Administration of Taxation):
If an enterprise's receivables that have been overdue for more than three years have been treated as losses in accounting, they may be treated as bad debt losses, but they should explain the situation and issue a special report.
Article 24 If an enterprise is overdue for more than one year, and the single amount does not exceed 50,000 yuan or does not exceed 1/10,000 of the total annual income of the enterprise, and the accounts receivable have already been treated as losses in accounting, they may be treated as bad debt losses, but the situation should be explained and a special report should be issued.
3. Accounting treatment standards
Similarly, in Articles 23 and 24 of the Announcement No. 25 of 2011 of the State Administration of Taxation, it is emphasized that losses have been treated for unrecoverable accounts receivable in accounting.
If an enterprise's receivables that have been overdue for more than three years have been treated as losses in accounting, they may be treated as bad debt losses, but they should explain the situation and issue a special report.
Article 24 If an enterprise is overdue for more than one year, and the single amount does not exceed 50,000 yuan or does not exceed 1/10,000 of the total annual income of the enterprise, and the accounts receivable have already been treated as losses in accounting, they may be treated as bad debt losses, but the situation should be explained and a special report should be issued.
4. Norms of factual evidence
Losses have been treated in accounting and cannot be deducted directly. "Unapproved reserves" are not allowed to be deducted before tax, so enterprises need to have external and internal relevant information to prove losses, and combine internal and external to corroborate each other.
5. Specifications for enterprise income tax declaration and customs declaration for reference materials
Fill in the enterprise income tax final settlement statement "A105090 Asset Loss Pre-tax Deduction and Tax Adjustment Schedule". Undeclared losses are not deductible before tax. Enterprises need to keep relevant retained materials for future reference.
02. Accounts payable
For the write-off of accounts payable for long-term accounts of enterprises, the reasons for write-off should be explained according to the requirements of internal control management (for example: no one has collected long-term accounts, there is no business relationship between the two parties, there has been no transaction with the other company for a long time, creditors cannot be contacted, and the accounts payable subject has been cancelled or revoked, etc.), and at the same time, combined with the limitation period, the management or the board of directors shall approve the write-off within the scope of their respective rights, and the financial department shall deal with the payables according to the approved write-off documents and in accordance with the provisions of accounting standards.
According to the provisions of the accounting system for enterprises, the accounts payable that cannot be paid shall be directly transferred to the "non-operating income" and the corresponding enterprise income tax shall be paid in accordance with the regulations.
04. Long-term pre-received/prepaid accounts
01. Accounts receivable in advance
For the pre-receivables that cannot be cleared for a long time, the enterprise shall, in accordance with the requirements of internal control management, be transferred to non-operating income if one of the following conditions is met:
1. The account age is more than 1 year, and there is no shipment, non-payment collection nature;
2. The account age is more than 1 year, there is an order plan, but the customer has not placed an order to request shipment, and confirms with the customer whether the advance payment is placed, and the customer does not respond beyond the statute of limitations;
3. The account age is more than 1 year, the customer subsequently stops trading, and the customer does not collect the money and return the money within the statute of limitations;
4. Unknown funds with an account age of more than 1 year, which are copied to the salesman by mail and are unclaimed;
5. Other circumstances.
02. Accounts should be paid in advance
For the prepaid accounts that cannot be cleared for a long time, the reasons for the prepayment should be analyzed and different treatments should be made:
1) If it is a truly unrecoverable amount, it can be treated as an asset loss. And make a special declaration when the enterprise income tax is settled.
2) If the actual goods or related costs have been incurred, but the invoice has not been obtained, and the accounting treatment has not been made, it is recommended to do the relevant accounting treatment. Because accounting should be "based on the facts" rather than "recorded by bills", but if you want to deduct before tax, you need relevant vouchers, so there will be tax differences.
Note: If the expenditure is less than five years, the pre-tax deduction can be retrospectively made, and the tax payable for the year to which it belongs will be adjusted accordingly, and the tax refund or tax credit will be processed according to the situation.