According to the provisions of the Interim Measures for the administration of the establishment of accounts for individual industrial and commercial households, individual industrial and commercial households engaged in production and operation and with fixed production and operation sites shall set up, use and keep account books and vouchers in accordance with laws, administrative regulations and the provisions of these measures, and keep accounts according to legal and effective vouchers. At the same time, the tax authorities should take effective measures to consolidate the existing results of establishing accounts, actively guide individual businesses to establish and improve account books, correctly conduct accounting, and truthfully declare and pay taxes.
Individual businesses that meet one of the following conditions shall set up double entry accounts:
（1） The registered capital is more than 200000 yuan.
（2） The monthly sales (business) amount of taxpayers selling VAT taxable services or business tax taxpayers is more than 40000 yuan; the monthly sales amount of VAT taxpayers engaged in the production of goods is more than 60000 yuan; the monthly sales amount of VAT taxpayers engaged in the wholesale or retail of goods is more than 80000 yuan.
（3） Other circumstances in which the provincial tax authorities determine that double entry accounts should be set up.
Individual businesses that meet one of the following conditions shall set up simple accounts and actively create conditions to set up double accounts:
（1） The registered capital is more than 100000 yuan but less than 200000 yuan.
（2） The monthly sales (business) amount of taxpayers selling VAT taxable services or business tax taxpayers is between 15000 yuan and 40000 yuan; the monthly sales amount of VAT taxpayers engaged in the production of goods is between 30000 yuan and 60000 yuan; the monthly sales amount of VAT taxpayers engaged in the wholesale or retail of goods is between 40000 yuan and 80000 yuan.
（3） Other circumstances in which the provincial tax authorities determine that simple accounts should be set up.
The above-mentioned monthly sales or turnover of taxpayers refers to the average monthly sales or turnover of individual businesses in the previous tax year; the newly established individual businesses are the estimated average monthly sales or turnover of the business period of the current year.
Individual industrial and commercial households that fail to meet the above accounting standards may, with the approval of the tax authorities at or above the county level, establish a paste book of income and expenditure vouchers, a register book of purchase and sales, or use tax control devices in accordance with the provisions of the tax administration law.
Individual industrial and commercial households that meet the standards for establishing accounts shall, according to their own production and operation conditions and the conditions for setting up account books as stipulated in these measures, choose to set up double entry account or simple account by comparison, and report to the competent tax authorities for the record. Once the method of account book is determined, it shall not be changed in a tax year.
An individual industrial and commercial household that meets the standards for establishing accounts shall, within 15 days from the date of obtaining the business license or the occurrence of tax obligations, set up account books and handle accounts in accordance with the relevant provisions of laws, administrative regulations and these measures, and shall not forge, alter or damage account books, accounting vouchers, tax payment vouchers and other relevant materials without authorization.
Individual businesses with double entry accounts should set up general ledger, subsidiary ledger, journal, etc. according to the accounting system for individual businesses (for Trial Implementation), carry out financial accounting and truthfully record financial revenue and expenditure. The cost, expense and other financial accounting regulations shall be implemented in accordance with the measures for individual income tax calculation of individual industrial and commercial households (for Trial Implementation).
Individual industrial and commercial households that set up simple accounts shall set up operating income accounts, operating expenses accounts, goods (materials) purchase accounts, inventory of goods (materials) and profit statements, record and reflect production and operation in the form of revenue and expenditure, and conduct simple accounting.