კატეგორიის გარეშე Archives - Page 2 of 9

Accounting services in Tbilisi

Posted on 13 September 2024 by Rusudan Tsiskreli

Tbilisi, the capital of Georgia, has a population of around 1.2 million, representing roughly one-third of the country’s total population of 3.7 million. However, it contributes approximately 50% of Georgia’s GDP, establishing itself as the nation’s central and most important economic hub. As a result, Tbilisi is the top destination for foreign investors in the country.

It should be mentioned that Georgia was ranked as 7 in the world in terms of ease of doing business by the World Bank. If you are considering entering Tbilisi’s vibrant and attractive market, there are two options you could choose from. You can either 1) operate business as an individual entrepreneur and obtain small business status from the Tax Authority of Georgia (details about this option is discussed in the following article Small business status in Georgia ); or 2) register a company in any legal form. In the case of the second option, the most popular choice is Limited Liability Company (LLC), which gives the most flexibility to businesses, especially in the starting phase.

Accounting services in Tbilisi

There are many companies that provide accounting services in Tbilisi. However, the accounting services market is dominated by a few top providers, with significant market shares. Our company, Ants, is a leading accounting firm in Georgia. We serve more than 600 client companies every day and we have been providing our services to clients since 2015. We employ the country’s finest talent and our staff is specially trained to provide exceptional customer experience. In fact, we have been awarded a nomination for Exceptional Customer Experience in the country’s largest business award annual ceremony.

We provide a full range of accounting services, including, but not limited to the following: accounting in the modern software; filing tax declarations; tax advisory; representation with the tax authorities. Our accounting system includes three levels of control: bookkeeping records are prepared by our accountants, then reviewed by financial managers, and finally supervised by internal auditors. We take great care to eliminate any mistakes in tax returns and we take financial responsibility for any tax penalties caused by any mistakes. It should be noted though, that we have close to a hundred percent success track record in tax-related matters. Therefore, choosing Ants as your service provider would be a very safe bet.

Accounting service fees in Tbilisi

Due to high competition, accounting service fees in Tbilisi are both reasonable and affordable. Local firms typically do not impose tourist taxes. Our fees are consistent for both local and foreign companies and individuals, with variations based solely on objective factors such as the number of employees, revenue size and the complexity of the client company’s industry.

Accounting services in Batumi

Posted on 6 September 20246 September 2024 by Rusudan Tsiskreli

Batumi is a second largest city in Georgia both in terms of population and in terms of economy, based on contribution to the country’s GDP. Batumi is also one of the most popular tourism destinations in Georgia, with breathtaking sightseeing and must-see locations. The city is also very popular among investors.

Accounting services industry in Batumi

A number of companies offer accounting services to businesses in Batumi. Outsourcing accounting is widely considered to be the best option among foreign investors to comply with local tax and accounting regulations. Our company serves hundreds of client companies on a daily basis and approximately one-third of our customers are foreigners, that makes us the leader in the industry across the country. If you are considering investing in Georgia and operating your business in Batumi, we can assist you in your company’s accounting process through fully taking over the bookkeeping, tax declarations filing and financial reporting services.

It should be noted that foreigners have a second option of conducting business in Batumi, which is operating as an individual entrepreneur rather than registering a company. In the latter case, individual entrepreneurs should obtain small business status. Specific requirements, tax benefits and other details associated with the latter status is discussed in our article on the following link: Small business status in Georgia

Why Ants?

In 2023 we were awarded in the country’s largest business award ceremony, organized by the largest local bank, a nomination for Exceptional Customer Experience. We have years of experience in handling complex tax matters, disputes and transactions. We are financially responsible for any tax penalties caused by mistakes in tax declarations. We have accounting responsibility insurance coverage from two leading insurance companies in Georgia. Additionally, the process of signing a contract with us is an easy and comfortable process. Therefore, if you are considering starting your business in Batumi, outsourcing the accounting job to Ants is your best option!

Accounting policies

Posted on 12 April 20249 September 2024 by admin

Accounting policies represent such rules and procedures that companies use for their accounting and financial reporting purposes.

Why do companies need accounting policies?

Those who are not familiar with the concept may not be aware of the need to implement accounting policies. They may think that those approaches and procedures, in accordance with which companies should keep their accounting records are publicly known, available and therefore companies don’t need to have their own separate policies, since they can use the existing ones. The fact is that the accounting standards which exist and are publicly available are not uniform and present companies with a choice between multiple approaches. It is mandatory that companies make their own decision and pick policies that suit their companies the most and capture the essence of transactions.

For example, one of the basic accounting policy choices relates to fixed assets (property, plant and equipment). In particular, companies can choose between the fair value model and the historical cost model of accounting. Both approaches are allowed by International Financial Reporting Standards (“IFRS”). Let’s discuss a specific example:

A company paid 2 million GEL to acquire a building. The useful life of the property was estimated to be 50 years (i.e. the company would use the building for 50 years). Exactly 1 year has passed since the transaction. The question is – what should be the net book value of the building in the company’s accounting records? The answer is – it depends. If the company has elected historical cost model, then the building’s net book value in 1 year from the date of property acquisition will be 1,960,000 (one million nine hundred and sixty thousand) GEL, which can be calculated by deducting the annual depreciation from the initial value (2,000,000 – 2,000,000/50). However, if the company has elected fair value model of accounting, then it needs to determine the fair value of building in 1 year from its acquisition. If the building’s value has increased to say 2.5 (two and a half) million GEL, then the company needs to revalue the building to 2.5 million GEL in the accounting records.

As evident from the above example, accounting policies’ choice has important implications on companies’ accounting records and financial statements.

How are accounting policies implemented?

A company which wants to select and implement accounting policies should hire a qualified expert, who has experience in the field. The expert can be either an individual or a company which studies the company’s existing accounts and presents a choice between various accounting policies to the company’s management. Based on the analysis, management chooses between various accounting policies, after which, based on the decisions made, the expert prescribes the accounting policies in a document, which the company must adhere to in its accounting and financial bookkeeping process. If you decide to implement accounting policies in your company, “Ants” will provide you with all relevant services.

Theoretically, companies can change their selected accounting policies and transfer to alternative methods, however, such amendments need to be substantiated and if decided, the changes must be applied retrospectively, as if the amended accounting policies have always been applied. As a result, prior period accounts should be amended as well.