Sole Proprietor Accounting in Torgsoft: Goods, Money, and Tax Data Preparation

To manage a store, an individual entrepreneur (sole proprietor) needs to document goods received, sales, returns, and transfers, and link payments and refunds to the corresponding transactions. Transfers between the entrepreneur’s own warehouses do not require payment, while goods may be received or sold before payment is made. Torgsoft can be used to monitor warehouse balances, sales, and cash. To get started, set the date on which accounting will begin, count the goods, gather supplier documents, and assign employees to record and reconcile transactions.

Separately determine your obligations under Ukrainian tax law: which income and expense records to keep, whether you need the Goods Inventory Form under Order No. 496, and which payments must be processed through a cash register (РРО) or software cash register (ПРРО). The owner or accountant must prepare and submit the required reports using documents and reconciled accounting data.

Determine what data the owner and accountant need

Management accounting helps establish how much stock the store has, what it cost to purchase, what was sold, and how much money remains. Tax accounting applies separate rules for determining income and expenses. For example, goods dispatched but not yet paid for and an advance payment received require different treatment depending on the purpose of the accounting.

These requirements are set out in paragraphs 296.1 and 177.10 of the Tax Code of Ukraine. For an entrepreneur under the general tax system, net taxable income is determined under Article 177: expenses must be documented and meet the prescribed conditions. The store’s total spending does not, by itself, constitute this figure.

Set out the practical workflow in writing: the salesperson records sales and returns; the inventory clerk records receipts and transfers; the owner reconciles money and stock; and the accountant or entrepreneur determines tax figures and files returns. Also retain confirmation that each filing was accepted for every reporting period.

Prepare the catalog, stores, and entrepreneur details

In Torgsoft, an accounting center is a store or warehouse for which the software tracks stock balances. A single physical retail location can have several centers, such as a sales floor and a warehouse. The “Підприємство” (Enterprise) field helps link documents to a particular entrepreneur or company. Before work begins, the owner must establish who owns the goods and where they are physically stored.

1. Organize product records. Assign each distinct product variant an item code or another unique identifier. Different sizes, colors, or units of sale must be distinguishable so the salesperson can select the right product without guessing.
2. Remove duplicates. Before creating a new record, search for the product by barcode, item code, and name. Recording the same product twice separates its history and stock balance.
3. Set a warehouse selection rule. Employees must record each transaction under the accounting center where the goods are actually received or from which they leave.
4. Keep entrepreneurs’ records separate. If the database is shared, check that each document belongs to the correct sole proprietor. A transfer between stores where the goods belong to the same owner and a transfer of goods to another entrepreneur require different documentation.

In Torgsoft’s sales form, products can be searched by barcode or item code. If a code matches several records, the software offers a choice. Establish your own catalog rules to ensure identifiers are unique.

Record purchases and opening stock

Set a date from which all store transactions will be entered into the software. Before that date, prepare a list of the goods actually on hand: name, unit of measure, quantity, cost, and storage location. Make a separate list of amounts owed to suppliers. Enter the goods actually on hand into Torgsoft using “Документ → Прихід товару” (Document → Goods Receipt), specifying the quantity and purchase cost. After entry, reconcile the software balances with the count results and check that goods already paid for have not created duplicate supplier debt. Reconcile actual debts separately against the relevant documents and payments.

Whenever a delivery is received, the employee must compare the goods delivered with the supplier’s document. Check the recipient, date, number, product names, quantities, and costs. Record any discrepancies before the goods are offered for sale. Keep the document so it can be found using its entry in the software.

For entrepreneurs required to keep records under Order No. 496 of the Ministry of Finance of Ukraine dated 3 September 2021, check the supplier and recipient names and identification details on supplier documents: the taxpayer registration number or the code of the Unified State Register of Enterprises and Organizations of Ukraine. For individuals who have officially refused a taxpayer number on religious grounds and have the relevant passport notation, provide the passport details or identity card number prescribed by the Procedure. The document must also state the transaction date, product names, quantities, and costs. Record goods received in the Goods Inventory Form before they are offered for sale.

Under this Procedure, the entrepreneur prepares a description of opening stock as of the date the obligation to keep inventory records begins. It lists the goods, quantities and units of measure, and the value determined by the entrepreneur. If there is no stock, no opening entry is made. Arrange any transition from a previous accounting system so that the history and documents required for mandatory accounting are retained.

Check whether Order No. 496 requires goods inventory records

The obligation is governed by paragraph 12 of Article 3 of Law No. 265/95-VR and the scope of Order No. 496. If a sole proprietor carries out settlement transactions covered by this Law, the obligation to keep goods inventory records applies, in particular, to entrepreneurs under the general tax system and single tax payers registered for VAT. They may sell only goods recorded in the inventory. The exemption described below, with exceptions, applies to single tax payers without VAT.

Sole proprietors who are single tax payers without VAT are exempt, except entrepreneurs who sell:

• technically complex household goods subject to warranty repair;
• medicinal products and medical devices;
• jewelry and household articles made of precious metals, precious stones, precious stones of organic origin, and semi-precious stones.

For this exception, what matters is whether the entrepreneur sells the listed categories. Do not limit the mandatory form to these goods while leaving the rest of the assortment out of the records. Exemption from the Goods Inventory Form also does not cancel income accounting or the documentary support required for tax reporting under Article 44 of the Tax Code of Ukraine.

If the Form is mandatory, maintain it in chronological order for each sales location. Keep internal transfer documents with the other supporting records. Do not enter sales data in column 8 for sales through a cash register or software cash register; goods received for those sales must still be recorded. Using a fiscal cash register therefore does not, by itself, exempt an entrepreneur from Order No. 496.

Correct errors in the Form while preserving the link between entries: the Procedure provides for the notations “анульовано” (cancelled), “анульовано — виправлено” (cancelled — corrected), and “виправлено” (corrected), with the corresponding row numbers. The Form and source documents must be available at the sales location until the last unit of goods under the relevant document has left. The electronic form must be capable of being displayed and provided for copying. If you provide copies of source documents, make sure the originals can be presented before the tax audit is completed, if required.

Generate the Goods Inventory Form in Torgsoft

This requires the paid add-on option “Облік товарних запасів” (Goods Inventory Records). The number of workstations is taken into account when the option is activated. Before purchasing, confirm the required number of workstations and compatibility with your license; commercial terms for add-on options and license terms are published on the Torgsoft website. In particular, the “Старт” (Start) license has one accounting center and restrictions on transfers between warehouses.

Enable the option and set the scope of the records

After activation, open “Налаштування → Параметри → Додаткові опції → Форма обліку товарних запасів” (Settings → Parameters → Additional Options → Goods Inventory Form), enable “Використовувати для поточного робочого місця” (Use for current workstation), and save the settings. Then go to “Склад → Форма ведення обліку товарних запасів” (Warehouse → Goods Inventory Form).

1. Set the start date. This determines the date for which the software calculates opening stock.
2. Select the accounting centers for one retail location. If the store has a separate sales floor and warehouse in the software, include both. Transfers between centers selected at the same time are not shown in the Form. Generate a separate data set for each other store.
3. Select the enterprise. This is especially important in a shared database: warehouse documents must be linked to the correct sole proprietor.
4. Do not apply analytical filters without a reason. Before generating the Form, make sure no extra restrictions remain active from a previous analysis. “Вид документа” (Document Kind) filters documents, while “Фіскальність товару” (Product Fiscal Status) changes amounts based on product flags. “Тип документа” (Document Type) affects only sales and returns depending on cash register use. Compare the result with the source documents: receipts must be complete, and sales through a cash register or software cash register must not appear in column 8.

The setup steps are described in the “Облік товарних запасів” (Goods Inventory Records) option help. The software’s “фіскальний товар” (fiscal product) flag and the legal obligation to fiscalize a particular payment require separate checks.

Reconcile the opening amount, documents, and details

Torgsoft calculates the opening amount using the cost of goods as of the selected date. If the expected amount is missing, check whether stock balances and calculated costs are available. Open the list of goods included in the row using the “Товар” (Product) action and compare it with the opening stock description. The setting for including negative stock balances also affects the result; investigate the reasons for any negative quantities.

Before printing, the owner or responsible employee should review several specific documents: a delivery, a return to a supplier, and a transfer between stores. For each, compare the date, number, counterparty, and amount with the original. Services are not included in the Form’s amount calculations. Additional explanations about opening balances and transfers are available on the page about generating goods inventory records in Torgsoft.

In the preview after selecting “Друк” (Print), check the entrepreneur’s surname, first name and patronymic, taxpayer number, tax address, and the name and address of the retail location. These details depend on the enterprise, retail network, and accounting center fields. Save the generated Form with the documents supporting its entries. Printing from the software does not, by itself, prove that goods were purchased or replace the required supplier documents.

Record sales according to the actual payment method

Before payment, the salesperson must check the product, quantity, price after any discount, and the selling entrepreneur. In Torgsoft, a cashless payment is recorded by selecting the relevant account. When the connection to the bank terminal is disabled, the payment entry in the software does not confirm that the card was successfully charged: the cashier must see payment confirmation.

Under Articles 2 and 3 of Law No. 265/95-VR, cash acceptance and card payments are settlement transactions. Unless an applicable exemption applies, they must be processed for the full amount through a duly registered cash register or software cash register, and the customer must receive a settlement document. A cashless payment method does not, by itself, establish an exemption.

Group 1 single tax payers are not required to use a cash register or software cash register under paragraph 296.10 of the Tax Code of Ukraine. Article 9 of Law No. 265/95-VR provides other exemptions. Separately, Article 10 allows specified forms and conditions of activity, defined by the Cabinet of Ministers of Ukraine, under which payments may be made without a cash register or software cash register but with a settlement book and a transaction record book.

Before using this procedure, the entrepreneur must determine whether the relevant government list covers their activity and what restrictions apply. Paragraph 14 of Article 9 of Law No. 265/95-VR exempts payments for services from cash registers, software cash registers, and settlement books if payment is made exclusively through remote banking systems and/or money transfer services. Do not apply this service exemption to sales of goods.

If customers transfer money using account details, determine the actual payment arrangement and whether it meets the definition of a settlement transaction.

If you choose to fiscalize transactions through Torgsoft, using a software cash register requires the separate paid option “Програмний РРО” (Software Cash Register), licensed for one year, as well as activation and setup. Take the software cash register option terms into account when planning the store budget. Before processing payments, register the software cash register, enter the entrepreneur and business unit details correctly, and provide the required electronic signature tools. During operation, check the amount, payment method, fiscal document number, and delivery of the document to the customer. The use of software cash registers for wholesale or retail trade in fuel is prohibited under paragraph 1 of Article 3 of the Law.

To prepare for interruptions in communication between the software cash register and the fiscal server, configure offline mode in advance and obtain a range of fiscal numbers: operating offline without one is prohibited. Article 5 of the Law sets the general limits at 36 consecutive hours and 168 hours in a calendar month. Paragraph 13 of Section II allows these limits to be exceeded during martial law, a state of emergency, or force majeure circumstances.

Within one hour after the connection is restored, transmit copies of offline documents to the fiscal server and notify the tax authority of the start and end of offline operation. Settlement documents created offline must state that they were created in this mode. Transmit copies of these documents to the fiscal server before transmitting the electronic fiscal report and electronic fiscal report receipt for the relevant day, and keep them in the software cash register until delivery is confirmed.

If the software cash register itself is faulty, stop processing transactions through it until the fault is fixed and, on the day the fault is discovered, notify the tax authority, software cash register manufacturer, and/or service center, where applicable, using the prescribed form.

Reconcile sales, returns, and money every day

At the end of the day, the cashier counts the cash, and the employee responsible for the store reconciles it with the transactions. Torgsoft provides daily sales and cash reports and a denomination count. Use the same date, time range, cash register, and entrepreneur when reconciling.

• Sales. Compare cash and card payment totals with the relevant confirmations. Separately identify unpaid or accidentally duplicated transactions.
• Returns. Check the return document, goods actually received, and amount refunded to the customer. If the return requires fiscal documentation, check the corresponding settlement document.
• Cash. Add receipts to the opening balance, then subtract refunds and other payouts. Compare the result with the cash physically in the register.
• Fiscal totals. For days with settlement transactions, ensure a fiscal report receipt is generated in accordance with paragraph 9 of Article 3 of Law No. 265/95-VR. When closing the software’s internal cash register, separately verify that the required fiscal report receipt has been generated.

Illustrative example. The cash register held UAH 1,000 at the start of the day. Customers paid UAH 8,000 in cash, UAH 500 was refunded, and UAH 6,000 was transferred to the central cash office. The expected balance is 1,000 + 8,000 − 500 − 6,000 = 2,500 UAH. Card payments are not included in this cash count.

Investigate any discrepancy by checking individual transactions: verify change given, payment method, returns, and cash withdrawals. Any adjustment must explain the reason for the discrepancy and leave a documentary record.

Record bank fees separately from customer payments

To reconcile card payments, compare three amounts: how much the customer paid, how much the payment service provider withheld, and how much was credited to the account. Include the sale date and credit date; the difference between them may explain a temporary mismatch in daily totals.

Illustrative example. Customers paid UAH 10,000 by card. For this example, the fee is 2%, or UAH 200. UAH 9,800 was credited to the account. For management accounting, retain all three amounts: UAH 10,000 in payments, a UAH 200 fee, and UAH 9,800 received.

For tax accounting, do not automatically record the net bank credit as income. The entrepreneur or accountant must determine the applicable amount and date under Articles 292 or 177 of the Tax Code of Ukraine, taking the agreement and payment documents into account. Keep return documents separately as well: the relevant conditions for single tax payers are set out in subparagraph 5 of paragraph 292.11.

Take inventory and explain discrepancies

The owner determines the area and time of the count, while the responsible employee counts the goods on hand. Pause movements in that area during the count or record all transactions separately, so each item is included in the results once.

In “Склад → Стан складу” (Warehouse → Warehouse Status), you can view product quantities, select warehouses and a date, open the movement history of a particular item, or add it to an inventory sheet. First confirm that the physical count is being compared with the correct accounting center and point in time.

1. Recount items with discrepancies, taking packaging and units of measure into account.
2. Review receipts, sales, returns, and transfers for those goods.
3. Find errors in product selection, warehouse, quantity, or document date.
4. Correct erroneous transactions, and document actual loss, destruction, or own use using the relevant documents.

For records under Order No. 496, documents concerning destruction, loss, or own use must state the value at the purchase price supported by the goods inventory records. After reconciliation, the owner should receive a list of discrepancies with explanations and a reconciled stock balance.

Set access rights and responsibility for backups

The owner assigns employee roles according to their duties. Give salespeople the necessary sales and return functions, inventory clerks the tools to work with goods, and reserve changes to financial data and access settings for designated employees. After configuring access, sign in as each employee to check which actions are actually available to them.

The business owner must control access to backups. A practical approach is to create a backup after the workday ends, store it separately from the work computer, and periodically restore it in a separate environment. This lets the responsible employee check whether the database opens and which transactions the backup contains. Keep original paper and electronic documents separately.

Determine document retention periods under paragraphs 44.3–44.4 of the Tax Code of Ukraine, taking into account document type, when the retention period starts, extensions, and unresolved tax audits or disputes. Documents must continue to be archived properly after the goods have been sold.

What data to provide when preparing a tax return

Before the end of a reporting period, the owner or accountant should receive a reconciled set of records: purchase documents, evidence of cash and cashless payments, bank statements, fee and return documents, and, if required, the Goods Inventory Form with its appendices. Separately list advance payments, goods dispatched but not yet paid for, and discrepancies that still need explaining.

Using these documents, the responsible person determines the tax figures, completes the required accounting forms, and prepares and files the return. Use Torgsoft reports to reconcile and prepare data. Organize tax reporting and the preparation of tax invoices separately, in accordance with the entrepreneur’s status.

Legislation for organizing accounting

• Tax Code of Ukraine dated 2 December 2010 No. 2755-VI: Article 44 — documentary support and retention; Article 177 — accounting for entrepreneurs under the general tax system; Article 292 — income of single tax payers; paragraphs 296.1 and 296.10 — accounting and the Group 1 exemption from cash register and software cash register requirements.
• Law of Ukraine “On the Use of Cash Registers in Trade, Public Catering, and Services” dated 6 July 1995 No. 265/95-VR: Articles 2, 3, 5, and 9; paragraph 13 of Section II — settlement transactions, goods inventory records, fiscal report receipts, exceptions, and offline operation requirements.
• Order of the Ministry of Finance of Ukraine dated 3 September 2021 No. 496, “On Approval of the Procedure for Keeping Goods Inventory Records by Individual Entrepreneurs, Including Single Tax Payers”: Section I, Section II, and the appendix — documents, opening stock, entries, corrections, and the Goods Inventory Form.