Advance report: when is it filled in and what information is entered?
Quite often, in business activities, a business uses advance reports. Its full name is Report on the use of funds issued for a business trip or for a report. Its approximate form was approved by the order of the Ministry of Finance of Ukraine No. 841 dated September 28, 2015.
Therefore, why is it necessary to draw up an advance report, in what cases, what are the main mistakes in filling it out and the consequences of non-compliance with legal requirements? Let’s deal with these questions in this article.
? Completion of the Report is carried out in cases of issuance by a business entity (its responsible person) and, accordingly, receipt by an individual of funds when:
? – business trip;
? – the implementation of a civil law significant action on behalf of a business entity in the performance of official or other duties.
It should be noted right away that the advance report is filled out not only in cases of cash issue (receipt), but also when paying with a corporate card (usually called the “Account Access Key”), travel, bank or personal checks or other payment documents. The advance report is drawn up and submitted to the responsible person of the business entity (manager, accountant) as a general rule within five banking days following the end of the business trip or the commission of a civil action. However, there are certain exceptions:
? – If funds were withdrawn from the corporate card during a business trip, then the Report is submitted within 3 days;
? – If during a business trip the settlement took place in a non-cash form, then the Report is submitted within 10 days (it can be extended by the employer up to 20 days).
? The following information is filled in the Report about:
✅ The employee who submits the report (position, RNOKPP, full name);
✅ Checking the report by the head;
✅ Appointment of funds;
✅ Balance, expenses, cost overruns;
✅ List of documents confirming expenses;
✅ Taxation of the overdue amount outstanding.
When taxing the unrepaid amount of overspending, a tax rate of 18% applies for personal income tax and 1.5% for military duty. Such taxation is carried out by an accountant after calculating all payments for the month.
An advance report is needed, among other things, to confirm the expenses in the economic activity of the enterprise. This is important when the tax authorities check financial statements.
The Report for a business trip abroad has certain features. The peculiarities are only in the fact that, since settlements in this case are carried out in foreign currency (as evidenced by receipts or other supporting documents), then the amounts in the Report must be indicated in such currency, and recalculation in national currency.
Thus, an expense report is an important accounting document that can entail significant financial implications.
If you have any additional questions, please contact, the lawyers and accountants of Prikhodko & Partners Law Firm will be happy to help you and provide you with expert advice.
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