How to open your own production and what is easiest to produce: ideas for business from scratch

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Evgeniy Malyar

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• The relevance of small businesses with their own production
• Pros and cons of business in the manufacturing sector
• How to find the right production niche and where to start
• Algorithm of actions when opening your own production
• What is easiest to produce: popular directions
• Construction and renovation work
• Food industry
• Clothing and textiles for the home
• Goods for children
• Goods for pets
• Automotive equipment
• Tourism goods
• Furniture manufacturing
• Agricultural industry
• Production of natural cosmetics
• Cost of starting your own business
• Recommendations for beginning businessmen
• conclusions

Throughout its history, humanity has invented many ways to generate entrepreneurial income. Their list is constantly growing - new earning technologies are appearing, and the line between the real and virtual world is gradually blurring. But no software product, even the most promising one, is able to satisfy people’s need for material household items and services. As Eastern wisdom says, even repeated repetition of the word “halva” does not add sweetness to the mouth.

Small businesses strive to fill all available niches in the consumer market. If a businessman understands that producing his own goods is more profitable than purchasing something for speculation, he begins to act in this direction. The first, and perhaps the main problem is the choice of “topic”. What product is the most popular and profitable in Russia today? How to create your own production in 2021?

Documenting

After examining the object, the commission must give an opinion on the possibility of its use. To do this, you need to draw up a primary document, which must contain the mandatory details provided for in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ. Such a document may be an act in form No. OS-1a or in form No. OS-1.

Apply the act in form No. OS-1a during the construction of buildings (structures). Draw it up at the time the object is included in the fixed assets (at the time its value is reflected in account 01 “Fixed assets” or 03 “Income-generating investments in tangible assets”) (paragraph 2 of the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7). Draw up an act based on primary accounting documents confirming the expenses incurred. Do not fill out the details of the donating organization, which are provided at the beginning of the act, as well as the sections “Information on the condition of the fixed asset object on the date of transfer” and “Passed over”.

In the act in form No. OS-1a, indicate:

• number and date of its compilation;

• full name of the fixed asset;

• place of acceptance of the fixed asset;

• factory and assigned inventory numbers of the fixed asset;

• depreciation group number and useful life of the fixed asset;

• information about the content of precious metals and stones;

• other characteristics of the fixed asset (total area, number of floors, etc.).

In addition, put a note on the conclusion of the acceptance committee (for example, the entry “Can be used”). The executed act is approved by the head of the organization.

When producing other fixed assets (except buildings and structures) on your own, use the form of act No. OS-1. When filling it out, apply the same rules as when drawing up form No. OS-1a.

This procedure follows from the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Simultaneously with drawing up the act in form No. OS-1a (OS-1), fill out the inventory card in form No. OS-6a (OS-6) in one copy. Draw up an inventory card on the basis of the act and primary documents. In the future, enter into the card information about all changes that affect the accounting of fixed assets (revaluation, modernization, internal movement, disposal). Reflect this information on the basis of primary documents (for example, on the basis of the acceptance certificate for modernized fixed assets in form No. OS-3).

This procedure is provided for by the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Attention: the absence (failure to submit) primary documents for accounting for fixed assets is an offense (Article 106 of the Tax Code of the Russian Federation, Article 2.1 of the Code of Administrative Offenses of the Russian Federation), for which tax and administrative liability is provided.

Initial capital

The main source of own funds is the authorized capital. Its monetary value is determined by the constituent documents. This is the initial amount contributed by the owners of the enterprise, which subsequently forms fixed and working capital.

The authorized capital, depending on the type of organization, may consist of contributions:

• founders;
• shares;
• proceeds from the sale of shares.

Depending on the type of legal form and organization of the enterprise, the amount of initial contributions may vary, as well as the amount of initial capital. The money contributed by the founders must be transferred to the company's current account. If the contribution was made in the form of property, an act of acceptance and transfer is drawn up.

Initial cost

Fixed assets constructed on an economic basis are accepted for accounting at their original cost (clause 7 of PBU 6/01). Include in the initial cost all costs directly related to the manufacture of the object (clause 8 of PBU 6/01, clause 5.1.1 of the Regulations approved by the Ministry of Finance of Russia dated December 30, 1993 No. 160). For example, expenses for paying salaries to employees involved in production, for the purchase of building materials, for the maintenance of construction machines, etc. A detailed list of expenses that form the initial cost of constructed (manufactured) fixed assets is given in the table.

When forming the initial cost of an object, take into account expenses based on:

• primary accounting documents (requests, invoices, pay slips, etc.);

• any other documents confirming the costs incurred (customs declarations, business travel orders, etc.).

For registration, accept documents that contain the mandatory details provided for in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ. For more information on preparing primary documents, see How to manage document flow in accounting.

During the operation of a fixed asset, its initial cost does not change. Therefore, if any costs associated with the creation (manufacturing) of an object are incurred by the organization after it is included in fixed assets, do not change the initial cost. And consider the costs as part of current expenses. The exceptions are cases of completion (retrofitting), reconstruction, modernization, partial liquidation and revaluation of fixed assets. This procedure follows from paragraph 14 of PBU 6/01.

Situation: is it possible in accounting to include the salaries of administrative and management personnel in the initial cost of a fixed asset constructed on an economic basis? The organization does not conduct any activities.

Yes, you can.

General business expenses are included in the initial cost of a fixed asset only if they are directly related to the creation of the object. This is stated in paragraph 8 of PBU 6/01 and paragraph 5.1.1 of the Regulations approved by the Ministry of Finance of Russia dated December 30, 1993 No. 160. If the organization does not conduct other activities, then during construction the administrative and managerial personnel perform functions related to its provision. Consequently, under these conditions, the costs of maintaining administrative and managerial personnel can be included in the initial cost of the facility being created. A similar point of view is reflected in the letter of the Ministry of Finance of Russia dated March 2, 2006 No. 03-03-04/1/178.

Advantages of internal sources

Using only your own sources of funds in the process of activity certainly has a positive effect on the operation of the enterprise. The advantages of self-financing include:

• no need to attract borrowed capital and unnecessary expenses associated with it;
• high financial stability and competitiveness;
• the ability of the founders to control the processes of the enterprise;
• a more favorable environment for raising debt capital if necessary.

Accounting: creation in a self-employed way

In accounting, all costs associated with the construction of an object using economic means are reflected in account 08-3 “Construction of fixed assets”. In this case, make the following entries:

Debit 08-3 Credit 10 (23, 25, 26, 60, 70, 76...) - reflects the costs associated with creating an object and bringing it to a state suitable for use;

Debit 19 Credit 60 (76) – VAT is reflected on costs associated with creating an object and bringing it to a state suitable for use.

Often, an organization uses property produced for sale for its own needs. If you plan to include former products in fixed assets, then first create its value on account 08. At the same time, make the following entry:

Debit of account 08 Credit of account 43 – the cost of the created property is taken into account as part of investments in non-current assets.

We note that although such posting is not provided for in the Instructions for the chart of accounts, it is correct. After all, the Instruction does not regulate accounting and has no advantages over PBU (paragraphs 1, 2 of the preamble to the Instructions for the chart of accounts, letter of the Ministry of Finance of Russia dated March 15, 2001 No. 16-00-13/05).

There is no need to reverse or correct this entry. The fact that the property was initially taken into account in account 43 is not a mistake. At that time, it was intended to be used as part of the MPZ (clause 2 of PBU 5/01).

The procedure for forming the initial cost of a fixed asset and its evaluation is prescribed in PBU 6/01, which is mandatory for use. Therefore, first include the value of the property that you decide to use as a fixed asset as part of investments in non-current assets. This follows from paragraphs 7–12 of PBU 6/01 and paragraph 8 of paragraph 2 of PBU 22/2010.

As soon as the object meets certain criteria, include it in fixed assets in the general manner.

Structure

Depending on how the enterprise’s capital is formed, own financing is divided into 2 groups: internal sources and borrowed (external) ones.

In turn, internal means consist of:

• own capital (authorized, reserve, additional);
• arrived;
• the amount of depreciation charges;
• income from the sale or rental of unused fixed assets;
• reserves;
• targeted financing funds.

External sources of equity formation consist of loans, gratuitous assistance, and issue of securities. Moreover, assistance can be expressed both in monetary terms and in transferred property.

Borrowed capital consists of received loans, loans from banks, other organizations, extra-budgetary funds. Funds raised through the issuance and sale of bonds are also included in this category.

Accounting: creation by contractor

In the process of creating a fixed asset on an economic basis, an organization can attract contractors to perform individual works. Also take into account the cost of their services when forming the initial cost of the fixed asset being created (clause 8 of PBU 6/01). Make the following wiring:

Debit 08-3 Credit 60 (76) – reflects the cost of contract work for the construction of a fixed asset;

Debit 19 Credit 60 (76) – reflects VAT presented by the contractor.

For information on the specifics of accounting for fixed assets manufactured by contract, see How to reflect the construction of fixed assets by contract in accounting.

Targeted financing funds

Some enterprises' own sources of funds may constitute revenues for intended use. Amounts of targeted financing are transferred by other companies or the budget of the Russian Federation. At the same time, strict control is maintained over the use of such funds: money can only be spent on appropriate needs. After using the target money, the organization must prepare reporting documentation.

The amount of targeted financing refers to the enterprise's own capital, since the funds received do not need to be returned. Such contributions may include subsidies, membership fees, and grants. Typically, targeted funding pursues charitable and socially beneficial purposes. For example, the construction of social facilities, conducting research and conferences for the development of science.

Accounting: acceptance for accounting and commissioning

Reflect the cost of accepted finished objects on account 01 “Fixed Assets” or account 03 “Income Investments in Material Assets”, to which open the sub-accounts “Fixed Assets in Warehouse (In Stock)” and “Fixed Assets in Operation”. If the time of registration of a fixed asset and its commissioning coincides, make the following entry:

Debit 01 (03) subaccount “Fixed asset in operation” Credit 08-3 – the fixed asset created by self-employed was accepted for accounting and put into operation at its original cost.

If the moments of registering a fixed asset and its putting into operation do not coincide, make the following posting:

Debit 01 (03) subaccount “Fixed asset in warehouse (in stock)” Credit 08-3 – the created object is taken into account as part of fixed assets at its original cost.

This procedure is provided for in paragraph 20 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, and the Instructions for the chart of accounts.

Borrowed funds

Borrowed capital is the main source of external financing for an enterprise, and often the only one. They represent a group of borrowed funds and obligations of various types:

• bank loans;
• funds on loan;
• amounts of accounts payable.

Despite the negative impact of borrowed funds on the financial position of the company, they play an important role in the course of business and even bring benefits. Attracting funds from external sources provokes an accelerated turnover of working capital and a reduction in work in progress.

BASIC

In tax accounting, reflect fixed assets constructed on an economic basis at their original cost.

Input VAT on costs associated with creating an object and bringing it to a state suitable for use should be deducted at the time they are accepted for accounting (for example, on account 10 - for materials) (clauses 1 and 6 of Article 171, clause 1 and 5 of Article 172 of the Tax Code of the Russian Federation). Along with this, other conditions required for deduction must be met.

Carrying out construction and installation work for one’s own consumption is subject to VAT (subclause 3, clause 1, article 146 of the Tax Code of the Russian Federation). Therefore, at the end of each tax period, the organization must charge a tax on their value (clause 2 of Article 159 and clause 10 of Article 167 of the Tax Code of the Russian Federation). You can accept it for deduction in the same tax period (clause 6 of Article 171 and clause 5 of Article 172 of the Tax Code of the Russian Federation).

Starting from the next month after the facility is put into operation, begin calculating depreciation.

Starting from the next month after accepting the fixed asset for accounting (reflected on account 01 or 03), include its value in the property tax base (clause 1 of Article 374 of the Tax Code of the Russian Federation).

An example of reflection in accounting and taxation of the production of fixed assets on an economic basis. The organization did not involve contractors during the construction process

CJSC Alfa began construction of a hangar in January using a self-propelled method without the involvement of contractors. The organization completed construction in March. The hangar was put into operation in the same month.

In January, the organization purchased construction materials in the amount of 590,000 rubles. (including VAT – 90,000 rubles). All of them were completely spent during the construction process: in January - in the amount of 200,000 rubles. (excluding VAT), in February - by 200,000 rubles, in March - by 100,000 rubles. The monthly salary of workers involved in the construction of the facility (including contributions for compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases) amounted to 98,000 rubles.

Operations related to the construction of the hangar are reflected in the accounting records using the following entries.

In January:

Debit 10-8 Credit 60 – 500,000 rub. – purchased building materials;

Debit 19 Credit 60 – 90,000 rub. – reflected input VAT on building materials;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 90,000 rubles. – accepted for deduction of input VAT on building materials;

Debit 08-3 Credit 70 (69) – 98,000 rub. – the wages of workers involved in the construction of the hangar in January are reflected in capital investments;

Debit 08-3 Credit 10-8 – 200,000 rub. – the cost of building materials transferred for the construction of the hangar in January is reflected as part of capital investments.

In February:

Debit 08-3 Credit 70 (69) – 98,000 rub. – the wages of workers involved in the construction of the hangar in February are reflected in capital investments;

Debit 08-3 Credit 10-8 – 200,000 rub. – the cost of materials transferred for the construction of the hangar in February is reflected as part of capital investments.

In March:

Debit 08-3 Credit 70 (69) – 98,000 rub. – the wages of workers involved in the construction of the hangar in March are reflected in capital investments;

Debit 08-3 Credit 10-8 – 100,000 rub. – the cost of building materials transferred for the construction of the hangar in March is reflected as part of capital investments.

Debit 01 subaccount “Fixed asset in operation” Credit 08-3 – 794,000 rub. (98,000 rub. × 3 months + 200,000 rub. + 200,000 rub. + 100,000 rub.) – a hangar built on an economic basis was registered and put into operation.

On the last day of March, the accountant charged VAT on the cost of construction and installation work and then reflected the tax deduction. The following entries were made in the organization's records:

Debit 19 Credit 68 subaccount “VAT calculations” – 142,920 rubles. ((98,000 rubles × 3 months + 500,000 rubles) × 18%) - VAT is charged on construction and installation work performed on a self-employed basis;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 142,920 rubles. – VAT accrued on construction and installation work performed on a self-employed basis is accepted for deduction.

Thus, in accounting, the initial cost of the constructed hangar was 794,000 rubles. The accountant indicated this amount in the act in form No. OS-1a, which he drew up when registering the finished object.

In tax accounting, Alpha's accountant included the hangar as part of depreciable property at an original cost of RUB 794,000.

Situation: how can an organization record the receipt of investments for the construction of real estate under a concession agreement?

In your accounting when you receive investments, reflect the accounts payable to the grantor. Write off the debt after transferring to the grantor the costs of constructing the facility in part of these investments. In tax accounting, reflect the receipt of investments as non-targeted budget subsidies.

Let's explain everything in order. Under a concession agreement, the concessionaire is obliged, at his own expense, to create or reconstruct an object, the ownership of which belongs or will belong to the grantor. This gives the concessionaire the right, during the period determined by the agreement, to use this facility in his business activities. In this case, the grantor may assume part of the costs of creating (reconstructing) the object of the concession agreement. Such rules are established in parts 1 and 13 of Article 3 of the Law of July 21, 2005 No. 115-FZ.

In our case, the grantor assumed part of the costs in the form of investments in construction. This must be reflected in accounting in a special way.

Accounting

In the accounting of the concessionaire, in terms of investments from the grantor, neither income nor expenses arise. Reflect the receipt of investments by posting:

Debit 51 Credit 76 – receipt of investments from the grantor.

Reflect the expenses for the construction of concession property on account 08:

Debit 08 subaccount “Expenses for the reconstruction of concession property” Credit 10 (23, 60, 68, 69, 70, 76 ... ) – expenses for the construction of the facility are reflected.

When the reconstruction is completed, reflect your own expenses on account 04. And transfer the expenses regarding the received investments to the grantor. Make the following entries in your accounting:

Debit 04 Credit 08 – own expenses for the construction of the facility are included in intangible assets;

Debit 76 Credit 08 – expenses for the construction of the facility, in part of the investments received, were transferred to the grantor.

From the month following the month of completion of construction, begin accruing depreciation on the intangible asset. Do this for the duration of the concession agreement. The wiring is like this:

Debit 20 (23, 25, 26) Credit 05 – depreciation has been accrued on an intangible asset.

The constructed object itself should be accounted for in the off-balance sheet account. For example, you can open account 012 “Property received under a concession agreement.” Accept it for accounting at the cost indicated in the acceptance certificate. From the month following the month the object was accepted for accounting, begin accruing depreciation. Accrue depreciation over the term of the concession agreement. Account for depreciation amounts in a separate off-balance sheet account, for example 013 “Depreciation of property received under a concession agreement.”

Make the following entries in accounting:

Debit 012 – the constructed concession facility is reflected;

Debit 013 – depreciation accrued.

This procedure follows from PBU 14/2007, information letter of the Ministry of Finance of Russia No. PZ-2/2007, Instructions for the chart of accounts (accounts 08, 04, 05, 10, 20, 51, 76) and confirmed by the Ministry of Finance of Russia in a letter dated February 8, 2021 No. 03-05-05-01/6120.

Income tax

In tax accounting, take the constructed object into account at its original cost. This will be the sum of the costs of constructing the facility and bringing it to a state suitable for use. Including expenses financed by the grantor. This conclusion can be drawn from the provisions of paragraph 10 of paragraph 1 of Article 257 of the Tax Code of the Russian Federation.

Starting from the month following the one in which the object was put into operation, begin calculating depreciation (paragraph 6, paragraph 1, article 256, paragraph 4, article 259 of the Tax Code of the Russian Federation). Depreciate the asset over its useful life. In Chapter 25 of the Tax Code of the Russian Federation there is no special procedure for determining the period of use of fixed assets received under a concession agreement. Therefore, follow the general rules (letter of the Ministry of Finance of Russia dated October 20, 2010 No. 03-03-06/1/654).

The investments themselves should be considered as a budget subsidy, which is not recognized as a target subsidy for tax accounting purposes. Therefore, include the funds received in income as you recognize depreciation charges as expenses.

At the end of the concession agreement, include the amount of investment not included in income into non-operating income. Do this on the last date of the reporting (tax) period in which the transaction took place. And take into account the amount of underaccrued depreciation on the object as part of non-operating expenses.

This follows from the provisions of subparagraph 8 of paragraph 1 of Article 265, paragraph 4.1 of Article 271 of the Tax Code of the Russian Federation, Article 78 of the Budget Code of the Russian Federation. This approach is also confirmed by representatives of the Russian Ministry of Finance in private explanations.

Recommendations for beginning businessmen

The advice that is usually given to aspiring businessmen is standard. First of all, you should sort through ideas, then evaluate and analyze the market, and, based on generalized information, decide which business will be profitable to open and which not so much.

In practice, all the most successful projects, starting with small amounts of investment, have the following characteristics:

• the entrepreneur’s interest in the nature of the activity;
• deep knowledge in the chosen field;
• the demand for the proposed product, often determined intuitively;
• hard work;
• effective commercial promotion using proven and invented methods;
• objective assessment of opportunities and prospects;
• continuous improvement of the product.

To put it all more simply, you need to love your chosen business and work diligently.

simplified tax system

Organizations using the simplified system are required to keep accounting records, including fixed assets, in full (Part 1, Article 2 of Law No. 402-FZ of December 6, 2011). At the same time, in order not to lose the right to apply the simplification, the organization must control the residual value of fixed assets, which cannot exceed 100,000,000 rubles. (Subclause 16, Clause 3, Article 346.12 of the Tax Code of the Russian Federation).

For information on the features of accounting for fixed assets built (manufactured) using economic methods, when simplified, see How to take into account the receipt of fixed assets and intangible assets using the simplified tax system.

Situation: is it possible to take into account when calculating the single tax the costs of constructing a fixed asset built on an economic basis? The organization applies a simplification and pays a single tax on the difference between income and expenses.

Yes, you can.

The right to take into account the costs of constructing a fixed asset is in no way connected with the method of construction or manufacture of fixed assets (subclause 1, clause 1, article 346.16 of the Tax Code of the Russian Federation).

Therefore, the organization has the right to take into account in expenses when calculating the single tax the costs of constructing a fixed asset using economic methods.

Additional capital

The amount of additional capital is formed by the additional income of the enterprise due to the revaluation of non-current assets (in the case of an increase in value) or the positive difference between the nominal and selling value of the enterprise's shares. The frequency of revaluation of fixed assets is established by the accounting policy.

Share premium is possible only for an enterprise with the organizational and legal form of a joint stock company. A positive difference between the value of shares can arise both when a company is created and in the event of an increase in the size of the authorized capital.

UTII

Organizations that pay UTII are required to keep accounting records in full (Article 2 of the Law of December 6, 2011 No. 402-FZ). Therefore, when reflecting fixed assets built on an economic basis in accounting, apply the same rules as under the general taxation system.

Operations related to the receipt, movement and disposal of fixed assets do not affect the calculation of UTII (clause 1 of Article 346.29 of the Tax Code of the Russian Federation).

If the fixed asset created by economic means is a piece of real estate, then the organization must register the ownership of it (Part 1, Article 4 of Law No. 122-FZ of July 21, 1997). For information on the specifics of accounting for such objects, see How to record the receipt of fixed assets subject to state registration.

Characteristics of borrowed funds

Let's consider the main external sources of the enterprise's own funds:

1. Bank loans are an obligation to the bank, which, depending on the term of financing, can be short-term or long-term. Short-term loans are issued for a period of no more than 1 year for small production needs of an enterprise. Long-term loans are issued for a longer period.
2. Loans are a group of funds received from other legal entities acting as borrowers (but not banks). Promissory notes, debt agreements and other forms can be used for registration. This also includes funds received from the sale of own bonds.
3. Accounts payable are expressed in various types of obligations of the enterprise, the main of which are settlement and according to the distribution of GDP. The first group consists of debts to suppliers of goods or services, the second – debts to employees and the state budget.

The enterprise's own funds determine the path of its further development. When forming sources of financing, it is necessary to carefully consider the nature of the funds in order to direct the company's activities in the right direction.

Other reserves of the enterprise

In addition to those listed above, there may be other reserves of the enterprise that are fully owned by it. The main criteria relating assets to the enterprise’s own funds are:

• Assets acquired with own funds from the authorized capital, reserve fund or company profits
• Assets not purchased with funds from targeted loans received from investors and necessary for further depreciation during project implementation
• Assets that are not leased property of other organizations (real estate, special equipment, vehicle fleet, equipment)

In other words, if the funds of third parties were used to obtain any asset or the assets were received for temporary use, the equivalent of their financial value does not apply to the enterprise’s own funds.

Own funds are mentioned in the reporting as a separate column and refer to passive assets, the distribution of which is made within the interests of the company.

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Retained earnings of the company

The net profit received by the company for the past reporting period is distributed to meet the target needs and other obligations of the company:

• Payments to employees regarding salary obligations
• Settlements with investors and creditors, payment of loan obligations
• Directing money to the needs of the company - purchasing materials, raw materials, equipment, obtaining necessary services
• Payment of dividend obligations for company shareholders
• Distribution for other targeted needs related to the daily activities of the company and requiring regular financial investments

If, after distributing funds to the above and other areas of the company's activities, any finances remain, they are classified as the company's retained earnings.

Retained earnings can be directed to various areas of the enterprise’s activities, from replenishing the reserve fund to increasing founder capital, to increase the attractiveness of the company in the eyes of investors, shareholders and business partners.

Data on revaluation of fixed assets and intangible assets

Long-term assets are subject to revaluation. The operation is carried out to bring the residual accounting value of assets to their market price. Features of revaluation and sources of information in accounting:

• These revaluations are reflected as a separate line in the balance sheet. When carrying out a markdown, the amount is written off against the profit at the disposal of the company.
• Revaluation recognized as a source of equity in the balance sheet after the first revaluation must be carried out regularly, every year.
• The operation is not performed more than once a year.
• Subsequently, revaluation is carried out at the replacement cost of assets.
• The need for an annual revision of the value is reflected in the accounting policy of the enterprise.

The procedure is carried out during the reporting period, no more than once a year. Data on the additional valuation are reflected in the balance sheet at the beginning of the next reporting period.