- Sergey Minyailo
- January 18, 2012
A general characteristic of Russian law and its application is that formalities overrule the practical side of business practices. Accountancy is no exception to this. International accounting includes elements of financial reporting, whereas in Russia, accountancy is merely related to the concept of bookkeeping. The accountancy system is regulated by the state, and it is worth mentioning that generally accepted accounting principles (US GAAP) and international reporting standards (IFRS) differ from Russian norms. However, a transition program exists regarding the IFRS.
As local rules state that for filing purposes, only statutory financial statements are valid, we at Awara ensure that our clients enjoy full compliancy with Russian Statutory accounting rules and tax filing requirements.
Russian accounting standards determine the structures, presentation, and procedures used in preparation of statutory financial statements. Our job is to assist you in preparing these, and delivering all needed documentations to the various offices involved.
Basic annual statutory financial statements include: a balance sheet, a profit and loss account, and detailed notes for both. For a particular category of small businesses, a simplified set of accounting rules is allowed. The reporting year of a Russian company is the calendar year, but quarterly financial reports must include a balance sheet and profit and loss statements. Additionally, many attachments are required: cash flow statements, statement of changes in shareholders’ equity, summaries of accounting policies, details describing all departures from mandatory practices, accounting requirements when a fair presentation cannot be achieved through their application. Additional details on significant accounts (intangible assets, fixed assets, investments, debtors, creditors, shareholders’ equity, revenues, cost and expenses, etc.) are also required.
You can outsource your entire accounting process to Awara. Our chief accountant is then responsible for ensuring compliance with Russian Statutory accounting rules and tax filing requirements. Management and group reporting is carried out in accordance with the client’s instructions. Regarding payroll, we can prepare salary calculations, social tax and obligatory pension insurance calculations, filings of related statutory reports, payment of social tax, personal income tax, pension fund contributions. We can provide you with monthly salary calculation reports, provide employees with pay slips etc. Many other tasks, such as cashier and expense reimbursements, managing accounts payable and accounts receivable, credit control, must be optimized for the client’s business. On the banking side, Awara can prepare all necessary payment documents for client’s signature and take care of the many formalities involved in transactions.
- Our accountancy clients are usually either subsidiaries of Western multinational corporations or medium-sized business groups
- Accountancy support that we offer ranges from full outsourcing to keeping of the books for sales’ offices
- We have experience in working with financial software ranging from SAP to Russian 1C
You can learn more about our accounting outsourcing services here.