A combination of the first two options.Before considering the best option for your company, you should probably answer some important questions:
1. What is your personal knowledge and understanding of the Bulgarian legislation and its dynamic changes? Please be aware that your lawyers may not be able to advice you clearly on issues under the Accountancy legislation, VAT Act, Corporate Income Tax Act, Personal Income Tax Act and relevant procedures.
2. What will you require and expect from the accountants of your business in Bulgaria?
3. What are the requirements of your auditors and financial controllers for the accountancy of your business in Bulgaria?
Answers to these questions may help you define more clearly your needs and help you in finding the right solution.
WHAT COULD YOU EXPECT IF YOU CHOSE THE FIRST OPTION ??“ TO ASSIGN THE ACCOUNTANCY TO A SPECIALIZED COMPANY
Why you choose to assign the accountancy to a specialized company?
The specialized accounting companies are legal entities, registered under the Commercial Act. Pursuant to the Accountancy Act they can draw up and sign annual financial statements.
The economic history of Bulgaria of the lapsed fifteen years produces various examples of accounting companies, which provide quality services comparable to those of international companies ??“ the big Five (Four).
The assigning of the bookkeeping activity to an external company could ensure additional guarantees of experience and correctness, a possibility for fast documents processing and respectively a greater number of more precise datasheets.
The assigning of the bookkeeping activity to an external company means one employee (or one department) less in your daily control program.
How to choose a specialized accounting company ??“ first practical steps:
1. As you would choose any supplier for your business ??“ look for preliminary information through all accessible sources: Internet, reference books, and recommendations by partners.
2. Categorize the companies, for which you have gathered information by several main criteria ??“ specialization in a particular sector, professional image, and source of information.
3. Send a brief written inquiry for an offer to three to five companies. It is important for you to describe your business (even if it is at conceptual level); your requirements and requirements of third parties ??“ banks, foreign partners, members, etc. Ask for a written offer with description of the commitments, which the company would undertake.
4. Organize a meeting with the companies, whose offers you find acceptable in principle. A meeting in the offices of those companies would provide you with additional information about the standards they apply in their work ??“ confidentiality with respect to documents of clients, organization of the office work, standard of welcoming a potential partner.
5. Before you finally choose a company, which to assign with the bookkeeping, ask for or prepare a draft contract. The contract is an additional and real guarantee of correct partnership.
For your facilitation
Empower the accounting company to represent your company in front of the National Social Security Institute, the National Institute of Statistics and the Municipal Tax Office. You will thus save the time that you would spend in contacts with administrative institutions ??“ they have procedures and rules, which could be very complicated.
Appoint an employee in your office, assigned with the commitments to be in contact with the accounting company. You will thus get structured bookkeeping information and will be able to trace the solution of a question you have posed.
Do not forget that there are no silly questions when your money is at stake.
WHAT SHOULD YOU KNOW WHEN YOU CHOOSE THE SECOND OPTION ??“ TO EMPLOY AN ACCOUNTANT
The requirements to compilers of annual financial statements, when they are physical persons, are regulated in the Accountancy Act.
1. Such physical person should be either an employee of the enterprise at the position of a Chief Accountant (or at another position appropriate to an economist), or should be in bonding relations. This means that an accountant can be either employed under a labour contract or assigned with the task to organize the bookkeeping under a mandate contract.
2. Required minimum educational degree and the respective length of service in the profession:
University degree in accountancy/economics and length of service in the field of accountancy, external and internal financial audit, tax inspections or as a tutor in accountancy and control, respectively:
a) Masters degree – 2 years;
b) Bachelors degree – 3 years;
c) Specialists degree – 4 years;
Other higher education in economics and 5 years length of service in the field of accountancy, external and internal financial audit, tax inspections or as a tutor in accountancy and control.
Secondary education in economics and 8 years length of service as an accountant
3. A financial statement can be drawn up by a person, who is not convicted for an indictable offence – theft, burglary, embezzlement, fraud, blackmail, property conceal, destruction and damage, abuse of trust, general economic offences and offences against creditors. In evidence of the fact that the person has not been convicted should be submitted a Conviction Status Certificate ??“ a formal document issued by the District Court.
WHEN SHOULD YOU THINK OF THE THIRD OPTION ??“ A COMBINATION BETWEEN AN ACCOUNTANT EMPLOYED IN YOUR OFFICES AND A SPECIALIZED ACCOUNTING COMPANY
When should you think of employing an accountant to work in your office in addition to the good partnership established with an accounting company ??“ this managerial decision should be taken in result of an analysis of certain factors:
Scale of the business availability of regional offices, partners, subsidiary companies, etc.
Specifics of the business daily issuance of a great number of cash receipt documents, necessity for cashier services;
Electronic business management system software for daily management of your business with the required functions, e.g. processing of warehouse information;
When should you look for a consultant, providing services to a well-operating accounting department in your company?
At any time you could look for assistance from a team of external experts. The accounting department performs well its routine day-to-day commitments and is familiar in details with your business, while an external consultant offers a side view, rich experience of a whole team of experts and work with a great volume of regulations.
