Merchants are faced with the need to transfer money into non-cash form at the time of concluding a service agreement. The credit institution writes off the commission for issuing business cards, connecting to online services, as well as other services within a few days. You are asked to transfer personal money to the current account of an entrepreneur (IP) on the day of registration of documents. However, subsequently replenishing working capital is required regularly. Sources of income may vary.
How can individual entrepreneurs pay?
According to Russian legislation, individual entrepreneurs are liable for their obligations in full with all their property, but at the same time they have the right to dispose of their income without any restrictions . This means that an individual entrepreneur can at any time withdraw any amount from the turnover and use it for personal purposes, as well as deposit any amount into the account for use in business activities.
Individual entrepreneurs can pay using cash and non-cash methods. Basically, all payments between legal entities and individual entrepreneurs pass through a current account. If the proceeds from the sale of products, works or services are credited to the bank account of an individual entrepreneur, then the following transactions must be made.
| Business transaction | Wiring |
| An individual entrepreneur sold his products (works, services) | Debit 62 / Credit 90.1 “Revenue” |
| VAT charged | Debit 90.3 / Credit 68 |
| The individual entrepreneur received the proceeds, which were credited to his bank account | Debit 51 / Credit 62 |
If an individual entrepreneur is not exempt from operating an online cash register (currently there is a list of those exempt from operating an online cash register), then when paying in cash, he must have a cash register in accordance with Law No. 54-FZ of May 22, 2003 “On the use of cash registers.” -cash equipment when making payments in the Russian Federation.” However, before July 1, 2020, all individual entrepreneurs are required to switch to online cash registers. The cash register must be registered with the tax office. The list of individual entrepreneurs exempt from the use of online cash registers is listed in Law No. 54-FZ of May 22, 2003. These include, for example, entrepreneurs:
· providing people with small household services, such as nanny services,
· as well as those selling certain goods, such as ice cream, newspapers, magazines, etc.
| Business transaction | Wiring |
| An individual entrepreneur sold his products (works, services) | Debit 62 / Credit 90.1 “Revenue” |
| VAT charged | Debit 90.3 / Credit 68 |
| The individual entrepreneur received the proceeds, which went to his cash desk | Debit 50 / Credit 62 |
| Cash from the cash register was deposited in the bank | Debit 51 / Credit 50 |
Is contributing your own funds income?
The concept of own funds for individual entrepreneurs is very vague. He is fully responsible for his activities with personal property and capital. The checking account is just another “pocket” where he can put money. If an individual entrepreneur deposits his personal savings into a bank account for a business, is this considered income in the eyes of the tax authorities?
For entrepreneurs using the simplified tax system and OSNO, the relevant question is whether a contribution of personal funds from an individual entrepreneur is income and how to contribute money so as not to pay taxes? After all, any income increases the amount of taxes payable. The key to success is the correct execution of the operation.
If the deposit method allows comments or the purpose of payment, replenishing the account with your own funds can be designated as “Replenishing the account with personal savings”, “Depositing your own funds” or other similar wording. For example, when depositing money through a corporate card (self-collection), the ATM usually does not allow you to choose the purpose of the payment or add a comment - which means that such a contribution of your own funds is income.
Personal funds contributed are not taken into account in KUDiR. Accounting services also allow you to register such a receipt in such a way that the money will not be reflected either in revenue or in the final tax reporting.
If, nevertheless, as a result of depositing personal money, the entrepreneur receives a letter with a claim from the tax office, in response it is necessary to send documents describing all incoming amounts. Proceedings on such matters can take quite a long time, so it is important to always correctly indicate the purpose of the payment - whether it is an individual entrepreneur’s contribution from his savings or revenue from his main activity.
How can an individual entrepreneur replenish his current account?
An individual entrepreneur can replenish his current account in the following ways:
- depositing funds directly into a bank account;
- depositing funds into a current account through terminals and bank cards;
- with the help of collectors.
Depositing funds into a current account by an individual entrepreneur does not require any formalization from him, unlike a legal entity. There are also no restrictions on the number of open current accounts.
How to transfer money from a card to a current account?
You can not only transfer money from it. It is also customary to make translations into it. Let's look at an example of how to transfer money to a Sberbank current account from a Sberbank card? There are several options for this:
You can use ATM . For this:
- Insert the card
- “Transfer and exchange of currencies”,
- "To a private individual"
- Indicate the account number and amount,
- Confirm.
To make a transfer through a bank, you need to know the recipient’s details, have a civil passport and the card from which the transfer is planned.
Sberbank clients who have access to a personal account (it is recommended to register it immediately upon receiving any banking product or opening a deposit) can make transfers via the Internet.
- If you need a transfer within the system (between Sberbank products, for example from a card to an account and vice versa), select the “Transfer to Sberbank client” tab. Then fill out all lines of the form.
- If you need a transfer to another bank, use the “Transfer to an individual to another bank using details” tab.
How to record the receipt of funds into a current account through a collector
The cash collector can hand over the money to the bank. In this case, it is also necessary to reflect the issuance of funds through account 57, because the money goes to the current account through an intermediate link - the collector.
| Business transaction | Wiring |
| Cash issued to collectors | Debit 57 / Credit 50 |
| Cash handed over to the bank by collectors | Debit 51 / Credit 57 |
The need to top up your account
Depositing your own funds into the account may be required for:
- Payment of taxes, insurance premiums - for example, tax payment deadlines are running out, there is not enough money in the account, and the entrepreneur contributes his own funds.
- Salary payments – replenishment is targeted and involves further transfers to employee salary cards.
- Repayment of loans and borrowings – which were taken out for business development or personal purposes.
- Payment of supplier invoices - as a rule, the terms for payment of issued invoices are limited, and if no income is expected, the entrepreneur uses personal funds.
There are different methods for depositing money - the same as for replenishing any other account (not just your own).
Common questions regarding individual entrepreneur current account
Question. How to reflect the receipt of personal funds of an entrepreneur into the current account?
Answer. Individual entrepreneurs have the right to freely dispose of their funds, then the receipt of funds into the current account and withdrawals from the current account can be reflected in the following entries, using account 76 “Settlements with various debtors and creditors”. You can open a “Personal Funds” subaccount for account 76.
Debit 51 / Credit 76 subaccount “Personal funds”
Withdrawals of money from the account for personal needs must be reflected by posting
Debit 76 “Personal funds” / Credit 51
Terms of transfer from card
You can make money transfers to a linked account using a credit card or debit card the fastest and with the lowest fees. Transactions are carried out in person or through the bank's cash department.
Terms of transfer:
- To make bank transactions at a branch, you need a card and a passport, make sure that there is enough money in the account, taking into account the commission (if any). Money is transferred from an individual’s card or one linked to a bank account.
- If you are sending your own funds from a personal card, indicate the purpose of the payment in the payment order - for example, “Personal money transfer”. Without the appropriate mark, the tax office may consider the receipt as income.
- When making a payment in favor of another legal entity or individual entrepreneur, you must also indicate the grounds for transferring money - this may be an agreement.
To conduct transactions yourself, when opening a current account, enable remote servicing. It will allow operations to be carried out without the participation of bank employees. The online account is accessible from computers, smartphones, tablets (it is convenient to use a special application). To make transfers in the future in a couple of clicks without entering all the data again, save the templates.
Replenishment methods
There are several ways to top up an individual entrepreneur’s current account. The speed of the procedure, availability and size of the commission depend on the chosen option.
Cash via bank
If there is time, the entrepreneur has the right to contact the bank branch in person and ask the employee to top up the account. You only need to have your passport with you. You can use an ATM to transfer funds. This is very convenient, since many payment devices operate around the clock, and there is no need to adapt to the operating hours of a banking institution.
Important! To avoid paying a commission, you should contact the bank where it is opened.
When replenishing through a third-party banking institution, you cannot do without a commission. The amount of the fee depends on the specific organization, so you should check in advance.
Depositing funds through a bank cash desk is a convenient method, but it requires travel time and long lines. It is necessary to choose the time of your visit to adapt to the operating hours of the institution. Businessmen do not have a lot of time, so they often turn to nearby banks, not paying attention to the size of the commission for depositing money into an account.
From personal account
If a businessman has a personal bank account, you can transfer funds from it to a bank account. To do this, you don’t have to go to the bank, just use Internet banking and transfer money between your accounts. This is a very convenient method that does not require much time.
A commission is charged if accounts are opened at different banking institutions. Therefore, it is better to take care of service in one organization.
From a bank card
Transferring funds is allowed from a bank card. In this case, you do not need to visit the bank office. All you need to do is use online banking, log into your personal account and make a payment without leaving your home. You will need to enter your account details. This is the most convenient option for replenishing your account, according to reviews from entrepreneurs. After all, you don’t need to go anywhere, funds are transferred instantly, and you can make a transfer at any time of the day or night.
Note! Making a transfer is not subject to commission if the card and account are opened in the same banking institution. In other cases, a fee is charged, the amount of which depends on the specific bank.
Many businessmen use the services of Sberbank. For the convenience of clients, this organization has created an online bank and a mobile application.
The procedure for transferring personal money of an individual entrepreneur through Sberbank Online to a bank account is as follows:
- Enter your login and password to gain access to your personal account.
- Go to the "Payments and Transfers" section.
- Select the item with transfers between your accounts.
- Fill in the form.
- Confirm the transaction using the code from SMS.
The procedure takes literally 2-3 minutes. Sberbank does not charge a transfer fee unless you transfer to another bank, for example, to Tinkoff.
