WHY DO WE NEED ACCOUNTING SERVICES?
This article will be very brief, and I hope it is comprehensive
The question "Do I need an accountant or an accounting firm?" is often posed to me.
My answer is a resounding yes if you have decided to develop a business in Bulgaria and want to avoid problems.
Even if your company is not currently operating, a dormant company accounting subscription won't strain your monthly budget much but can save you a lot of trouble. Remember, your company is a source of your income, but like all enterprises, it needs attention, and regular accounting is one of those needs.
Why?
Every 5 years, tax inspectors conduct periodic checks on ALL companies, regardless of whether they are active, registered for VAT, or the sphere of their activity. Even if you are not working or at least not actively, sooner or later, you will be audited in any case. Finding irregularities or the absence of any accounting documentation will not be advisable.
If you pay your social security contributions through your company, you need to prepare documents submitted to the NRA for the respective type of insurance—employment contract, management contract, or for a self-insured person. The procedure is monthly and requires special knowledge and monitoring of social security legislation. If you do not wish to be insured, you need to notify the NRA in a specific manner.
At the end of each financial year, you must submit financial statements, even with a zero result, to the NRA, the Statistical Institute, and the Registry Agency.
This is at the very least what can be required of your enterprise.
If you miss these three steps, I guarantee waiting in line at the NRA, NSSI, and other institutions, headaches with formalized bureaucratic procedures that drag on for months, and ultimately fines for administrative violations. Putting aside the fact that while waiting (respectively acting) for "things to get sorted out," you won’t have time and opportunities for other important matters. The fines and sanctions often far exceed the human notions of a symbolic "amount." The amounts can reach colossal sizes for a small or nearly inactive company.
My professional advice to you is to find a suitable specialist or firm to handle your accounting matters and:
- Represent you before state and administrative institutions, but mainly before the NRA, NSSI, and the Labor Inspectorate. Not much is necessary—just for the accountant or accounting firm to respond to counter checks or inquiries from official state bodies. For this purpose, of course, you must authorize them.
- Notify you promptly in the presence of such issues and advise you on how to proceed in the case, usually following routine procedures.
- When they identify that you are making or will make a violation, your specialist should inform you of its consequences, as well as that you are in violation. For this purpose, of course, your specialist must be informed about your plans. They cannot understand and advise you if you don't trust them first.
In addition to the troubles saved, there are some benefits from collaboration with an accountant or accounting firm. Firstly, you can receive immediate information about your financial resources and flows across units, departments, etc. (depending on your needs), advice on cost and tax optimization, and all sorts of reports about everything. No need to read tax and social security legislation. At least, Vesta Consult does it for you. It's enough to call or write to us, and you will get answers.
