As the reform of the financial system in Russia moves forth, bookkeeping and tax accounting turn into a more and more narrowly specialized professional activity. As a consequence, many companies fail to comply with the law. Furthermore, accountants are often poorly qualified.
Development of tax saving schemes, contacts with tax authorities, automation of the accounting process, recruiting and training of qualified personnel, information support - to name just a few challenges in organization of accounting, which prevent businessmen from focusing on the basic activity.
A potential solution is to view accounting as an accompanying function, which can be delegated to a third party specializing in accounting.
This option is envisaged in the National Accounting Act №129-ФЗ adopted on 21/11-96.
In addition to being obviously convenient, this form of accounting helps make a few economies, which are not so apparent.
First, the accounting company's fee depends solely on the amount of work, which varies as the client's business develops or declines. Small companies, which cannot afford "costly" personnel, get a chance to buy qualified accounting services with relatively little money.
Second, the possibility of potential mistakes due to incompetence of the personnel is eliminated.
Third, the expenditures on accounting services reduce the corporative income tax and VAT. The company does not have to pay social security taxes, expand its premises, create a workplace including space, equipment and legal software. No time or money is spent on recruiting.
Fourth, there being no social issues, companies avoid the burden of social security benefits.
Services provided:
- bookkeeping
- accounting system review and design
- internal documentation and reporting
- compilation and transmittal of quarterly accounting reports
- preparation of tax returns and tax filing
- advocating the client's interests with tax authorities and off-budget funds
- control over document format
- preparation of reports on international accounting standards
- automation of bookkeeping
The first action of the accounting company starting to work with a client is to determine the bookkeeping situation and estimate the amount of the work to do. After the price has been negotiated and the contract signed, the client's current accounting and tax policy is analyzed, and a new one is worked out, if necessary. All the client will have to do afterwards is submit the newly emerging documents on time, remember to consult the accountant when new contracts are made, sign the statements and pay the optimized taxes.
