Accounting, analysis and control of taxation of the activities at “ABV Mechanizatsia” LLC
Students Name: Shvets Anna Anatoliivna
Qualification Level: magister
Speciality: Accounting and Taxation
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2023-2024 н.р.
Language of Defence: ukrainian
Abstract: In modern economic conditions, information about the taxation of a company’s activities, derived from accounting data, is crucial for both external and internal stakeholders. The analysis of taxation is essential for activity planning, identifying opportunities for optimizing tax risks, and managing tax liabilities. Control involves verifying the accuracy and timeliness of tax payments, establishing optimal tax strategies, and avoiding potential tax risks. The significance of accounting, analysis, and taxation control enables enterprises and individuals to fulfill their tax obligations to the state accurately and on time. EXTENDED ABSTRACT Study object - accounting, analysis and control of taxation of the enterprise. Scope of research - the organization and methods of accounting, analysis and control of taxation of the «ABV Mechanizatsia» LLC. Scope of research: generalization of theoretical, regulatory, legal, methodological and practical aspects of accounting, analysis and control of taxation of activities and enterprises, as well as the development of practical recommendations for improving the accounting and control of this process. Research results The essence of taxation boils down to several key elements: subjects and objects of taxation, tax rates, bases, periods, methods of tax payment, and tax reporting [1, p. 12]. Based on the level of governing structures that establish taxes, they are divided into national and local taxes. National taxes are set by central governing bodies and are mandatory throughout the country at uniform rates. Local taxes are established by local authorities and are mandatory for payment in specific areas at predetermined rates. Economic analysis of business taxation involves the process of collecting information on tax payments, studying and processing it over a certain period compared to previous periods. The purpose of such analysis is to determine the level of the tax burden and, consequently, methods of managing it [2, p. 211]. The subject of tax control includes tax and fee payments, accounting and reporting, compliance with tax legislation, tax benefits and incentives, cash flow, and settlement operations [3, pp. 78-79]. The analysis of the tax burden indicates the need for monitoring and adapting tax strategies to optimize financial results and reduce the financial risks of the enterprise. During the analysis of the tax burden for «ABV Mechanizatsia» LLC in 2022, it was found that the choice of the taxation system has a significant impact on the amount of taxation and the fiscal obligations of the company. Taking into account calculations and performance indicators of «ABV Mechanizatsia» LLC it is established that the choice of the general taxation system is justified and contributes to minimizing the tax burden for the company. The organization of primary accounting for tax accruals and payments at «ABV Mechanizatsia» LLC complies with standard procedures and includes important steps to ensure the accuracy and systematic nature of financial operations. The process of accounting for taxes in the company is based on the use of well-known primary documents. Tax accruals are reflected in accounting statements for each type of tax. These documents determine the amounts subject to payment and create the basis for further accounting and control of tax liabilities. The primary documents reflecting tax payments are payment orders and bank statements from the current account. For tax accounting, account 64 is used, where the credit balance reflects the amounts of accrued taxes (determining the accounts payable), and the debit balance reflects the payment of taxes (settlement of liabilities). The aggregated information on tax accruals and payments is reflected in the financial and tax reports of «ABV Mechanizatsia» LLC Since LLC «ABV Mechanizatsia» LLC is a small enterprise, its business volumes and the number of employees entitle it to complete financial reporting as a microenterprise, which includes forms 1-MS and 2-MS. Quarterly information on the amounts accrued and paid in taxes is reflected in the declaration for each tax. The control of tax calculations at «ABV Mechanizatsia» LLC is determined by four stages, including the analysis of the existing taxation system, the development of a plan and control program, the actual verification of compliance with the current tax legislation, and the summarization of results. To improve tax accounting in the activities of «ABV Mechanizatsia» LLC it is recommended to make changes to the accounting policy with a separate section dedicated to the organization of tax accounting. The VAT taxation system of enterprises requires the creation of additional management documents that would contribute to the correct calculation of the VAT amount to be paid to the budget or refunded to the enterprise. This will enhance the process of preparing tax reports. Keywords: accounting, analysis, control, taxes, taxation system. References: 1. Balashova, O. V. (2016). Podatkova systema: Posibnyk [Tax System: Handbook]. Kramatorsk: DDMA. 2. Sanina, I. S., & Tkachyk, L. P. (2015). Otsinka rivnia podatkovoho navantazhennia v Ukraini [Assessment of the level of tax burden in Ukraine]. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu. Seriia: Ekonomika i menedzhment, 13, 211-216. 3. Mykolaets, A. P. (2016). Podatkovyi kontrol: teoretychni zasady i praktyka zastosuvannia v umovakh reformuvannia ekonomiky Ukrainy [Tax control: theoretical foundations and practical application in the conditions of economic reform in Ukraine]. Derzhavne upravlinnia: udoskonalennia ta rozvytok, 12, 76–80.