Can I do my own accounting for a small company in 2024 in Bulgaria?

Complete guide on the topic of how to keep accounting of a small company by the manager, can I be without an accountant, how to keep accounting of a company registered under VAT and without registration for VAT, what are the requirements and applicable accounting standards, etc.
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Can I do my own accounting for a small company in 2024 in Bulgaria?
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In today's dynamic business world, accounting management represents a critical component to the success of any company, especially for small businesses. At Elan Consulting we understand the importance of accurate and efficient keeping the accounting, which provides valuable information for management decision-making and strategic planning. Our team of experienced accountants and consultants is here to provide you with professional support and guidance throughout the entire process of accounting of a company without VAT, as well as answer the question, can a company without an accountantto handle their accounting duties independently.

We believe that the path to success accounting of a small companyis directly related to the right choice of accounting software and services, which is fundamental for any business. In this context, we also consider the possibilities of portal for accounting, where you can find useful reviews, opinions and tips. In addition, we understand how important cost management is for small businesses, including accounting of company price, which should be effective and profitable.

We also recognize that access to information about all about accountingis critical to the successful management of the company's finances. For those who want to expand their knowledge, we offer guides and courses on the topic how to learn accountingas part of our educational initiatives.

At Elan Consulting, we are committed to providing quality accounting services that meet the unique needs of each of our clients. We value your trust and are here to support you every step of the way to the financial success and sustainability of your small business.

Can I do my own accounting?

The question of whether we can keep our own accounting is key for many aspiring entrepreneurs and small business owners. At Elan Consulting, we understand the challenges and issues that may arise in this process and are here to offer our expert help and guidance.According to Art. 17 of the Accounting Act, the interim, annual and consolidated accounts of enterprises are drawn up by individuals who are in an employment, employment or contractual relationship with the enterprise, or by accounting enterprises, and according to Article 18 of the same Law, persons must meet the following requirements:

  1. Have acquired a compulsory minimum degree of completed education and corresponding actual experience in the specialty -higher accounting and economic education and internship in the field of accounting,external and internal audit and financial inspection, tax audits or as a lecturer in accounting and control
    • For a master's degree of higher education - two years
    • With a bachelor's degree - three years
    • With the degree “professional bachelor” - 4 years;
  2. Have other higher economic education and 5 years of experience in accounting, external and internal audit and financial inspection, tax audits or as a lecturer in accounting and control
  3. Have a secondary economic education and 8 years of experience as an accountant
  4. They have not been convicted of an offence of a general nature under Chapter Five and Chapter Six, Section I of the Special Part of the Criminal Code.

The above requirement may not apply to the annual financial statements of sole traders who apply the method of unilateral accounting entry, as well as to microenterprises under Article 19, paragraph 2 of the Accounting Act, which did not carry out activities during the reporting period. In these cases, the financial statements are drawn up by the owners or partners of these enterprises.

Can a company be without an accountant?

Can a company be without an accountant?Yes, but with a number of conditions. Sole proprietors and micro-enterprises that did not carry out activities during the reporting period can benefit from simplified accounting service. However, it is important to emphasize that the independent bookkeepingrequires considerable knowledge and time to learn and apply accounting principles and tax legislation.

Important! In practice, this means thatif your company is a microenterprise within the meaning of the Accounting Act and has not been active before the last financial year OR your company is a registered sole trader, which applies a unilateral accounting entry, You don't have to keep accounting., since simplified reports are submitted at annual closure. For more information on the annual closing, you can read here!

How is the accounting of a company carried out independently?

For those who wonder how to learn accounting, there are numerous resources and trainings that can help. Including, portals for accounting, where valuable information, opinions, courses and forums are offered, where you can get advice from experienced accountants. However, it is important to keep in mind that accounting of a company without VATor with VAT requires a thorough understanding of the relevant legal frameworks.

What do we need to know about bookkeeping?

Every company in Bulgaria, regardless of its size, is obliged According to the Accounting Actto keep accounting. This obligation covers the preparation of various accounts, including balance sheet, income statement, cash flow statement, equity statement, annual activity report, as well as annexes with accounting policy and explanations.

The organization of the accounting process is associated with compliance with certain timelines, and omissions can lead to penalties. Monthlydeclarations on the provision, monitoring and submission of hospital lists, as well as notifications of the appointment or dismissal of staff shall be submitted. Every quarterpayments under civil contracts and rents are declared. It is important to monitor the turnover on a daily basis in order to avoid the obligation to register under VAT.

The obligation to keep accounting and submit declarations arises from the moment of the start of the company's activities, regardless of whether it has hired personnel or not. Provision of the manager is mandatory.

Who keeps the accounting of the company?

It can be led by natural personswho are in an employment, employment or contractual relationship with the undertaking, or accounting firms. There are cases when annual financial statements can be compiled by the owners or partners of sole traders and micro-enterprises that did not carry out activities during the reporting period.

Knowledge and compliance with Ordinance H-18to the Minister of Finance for registration and accounting of sales is also extremely important, since non-compliance can lead to serious penalties.

The choice between bookkeeping yourself, hiring an accountant or an accounting house

True, all accounting houses offer different price for accounting of a company depending on the volume of work and the complexity of financial operations. Many business owners choose to hire an external accountant or use the services of an accounting house to ensure accuracy and compliance with the deadlines for tax and insurance returns. This can be especially valuable if the necessary knowledge or time for independent accounting is lacking.

Important! The choice of whether to keep accounting yourself or hire an accounting firm depends entirely on the financial resources available to your company and whether the funds that you will save if you keep the accounting yourself will justify the time spent in which you could focus on your own business. The idea of hiring a specialist lies in this at the same time saving time in which you can make additional income, as well as ensuring that no mistakes will be made in accounting!
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How is the financial statement of a company drawn up?

The compilation of financial statementof a company is a mandatory action that must be carried out in accordance with The Accounting Actand the applicable accounting standards. Here are the steps and requirements for compiling a financial statement:

  1. Basic requirements:The financial statements are prepared in Bulgarian, in Arabic numerals and in thousands of BGN. They must present truthfully and honestly the property and financial position, financial results of activities, cash flows and equity of the enterprise.
  2. Content of the financial statements:It includes information about the name, legal form, address of management of the enterprise, as well as other data required by law and accounting standards. The accounts shall be signed by the head of the enterprise and by the natural person or representative of the accounting firm that has drawn up the financial statements.
  3. Principles for recognition and evaluation:Financial statements are prepared according to certain principles such as operating entity, consistency, prudence, accrual, and others to ensure accuracy and comparability of the information presented.
  4. Inventory:It is carried out at least once a year for the reliable presentation of assets and liabilities in the financial statements. There are exceptions for enterprises with net sales revenue below a certain threshold.
  5. Annual financial report:It consists of a balance sheet, a statement of income and expenses, and an annex. Micro and small enterprises can draw up abbreviated versions of these documents.
  6. Consolidated financial statements:Parent entities prepare consolidated financial statements in accordance with National Accounting Standards or International Accounting Standards, depending on the entity's accounting base.
  7. Compliance with deadlines and regulations:It includes monthly submission of insurance declarations, quarterly declaration of payments under civil contracts and rents, as well as attention to VAT registration obligations.

All businesses must comply with these standards and requirements to ensure that their financial statements are accurate, reliable and comply with legal frameworks. Drawing up a financial statement is a key element of the accounting process and is important for transparent and responsible management of the company.

How to choose an accounting house?

The choice of Elan ConsultingAccounting for your small business offers reliability and professionalism, which are essential for the successful management of your finances. With our deep experience in accountingand in-depth knowledge of Legislation, we ensure accuracy and compliance with all deadlines and regulations required by The Accounting Actand the applicable accounting standards.

We understand the specifics of small businessesand we offer customized accounting solutions that meet the unique needs of each client. We provide full accounting services, including preparation of accounting balances, income and expense statements, and annual financial statementsas well as assistance in inventoryand tips for optimizing tax and financial processes.

The Elan Consulting team provides you peace of mind through reliable Collaborationand constant support. We value our relationship with customers and are dedicated to providing quality accounting servicesthat contribute to the growth and success of your company. Our approach is focused on transparency and accountability, ensuring timely and accurate reporting.

By choosing Elan Consulting, you rely on Professionalism, Reliabilityand personalized approach, which are fundamental to the effective management of the accounting of your small business. We are here to support you in every aspect of your accounting and financial processes, giving you the peace of mind to focus on what you are best at — the development of your business.

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