Bookkeeping and accounting – isn’t that the same thing? Most people can’t tell the difference. While both activities are linked and one depends on the other, they are not the same thing.
Let us give you one simple example – don’t take it too literally anyway. You drive by a beautiful house – this is someone’s successful business. You see only the outside presence and you are not aware of what it’s like inside and what was house made of. Well, let’s say that all the bricks, glass, wood and other material used represent the bookkeeping. Accounting is the method putting all stuff together to form strong, massive and well looking building. Bookkeeping could be useless without proper accounting – bricks, glass and wood would crumble down, if they are not structured correctly. But accounting stays on the foundation of consistently and fairly kept data which profound function of bookkeeping.
Financial and bookkeeping services maintain good level and offers wide spectrum of support to business entities. Big and established accounting companies hold the flag high and meet all necessary requirements. To stand against test of time and difficulties, counting houses expect players in their team to be well prepared in different areas like financial matter, auditing, trade law and international accounting practice. It helps both big and small business, established companies and startups put their foot in this soil right now to rely on tested experts to put and hold strong foundation of activity.
Among the standard services like monthly and yearly close, reports on VAT, payrolls, taxes and social security, accounting professionals provide support on more issues as consulting subscribed companies, preparation of individual tax planning, financial analysis and bookkeeping on time.
Company’s consultation is a part of monthly subscription to accounting services. When there are uncertainties or questions regarding payrolls, wages, VAT or Annual financial report, expert are always there to give you the correct answer. Don't be shy to ask, it is important to know every change in every law on time not only for bookkeeping matters, but for being to be sure that you are impeccable in all aspects of your activity.
Accounting in Bulgaria is on mandatory base. There are many laws, regulations, documents and agencies which expected your reports, papers and information. If you want to maintain your accounting by yourself, you need to know many things:
Regulations. Bulgarian Accountancy Act governs all aspect of accounting in Bulgaria and it is in accordance with of European Union Directives. There are also many regulations such as the Commercial Act, the Bulgarian National Bank Act, the Credit Institutions Act, etc. containing rules which are applicable to maintenance of accounting papers and financial information.
Mandatory accounting and financial papers and information:
Registers. Every natural person or legal entity should be registered into the Commercial register and is responsible to keep appropriate information about it.
Financial reporting. It is a financial statement on annual basis for which are responsible all entities. This paper should be prepared by individuals or enterprises who should meet the requirements for a minimum level of education and corresponding professional experience according to the Accountancy Act. There are individual and consolidated financial statements which are distinguished by the type of business.
Payroll Accounting. It is mandatory to provide payroll accounting for permanent and temporary employees; to keep records of individual payroll data; to produce payrolls calculations including the employees’ basic salary, sick leave payment, holiday’s payment etc.; calculated taxes which should be paid according to the law relating health care insurance, social security insurance and pension insurance.
VAT registration and VAT reports. You need to know the requirements for mandatory and optional registration under VATA; to prepare and submit monthly VAT repots to the relevant agencies; to do VAT payments and refunds.
Contractual relationship between the company, also called employer, and the workers – the employees, is essential matter of entity’s bookkeeping. Human resources department takes care for the working staff agreements with the firm. There are lots of issues that go through accounting services – wages, insurance deductionsfrom employer and employee, submitting, registration and termination of contracts. Contractual relationships and everything that is connected to it is specific matter and it needs professional support from experienced experts.
There are two main types of contracts between company and worker – Labor and Civil contract, known also as Employment contract and Service contract respectively. In general the main difference between both types that first treat the employee as a part of work force of the company who has obligation to follow strict hours while the second one is connected to result of the work, not the time spent at the office.
Do you know that Bulgaria was some kind of European champion in accountants service? Well, there is no actual European championship in that „sport“, but what is important here is that Bulgaria practically have more licensed and educated accountants per capita than any other country in European Union. Or at least this was the picture 5 years ago, when it turned out that Bulgaria produces more accountants than needed by the labor market.
Little has changed since then though there were suggestions to reduce quota of accounting specialties in universities and colleges. One thing is clear – if you need an accountants service in Bulgaria, you have a lot of options to choose from. One would say that what is important is the quality, not the quantity, but on the other hand the more people have studied for this job, the bigger is the number of professionals who are actually prepared to do it really well.