The correctness of tax reporting and proper planning of further work depends on competent accounting. When you open your business in another country it is quite difficult to understand how to act correctly if you do not know all the nuances of the law. In this article, we will tell you about accounting in Georgia.
How to keep accounting in Georgia?
Tax and financial statements, statistics, access to banking operations, payment of taxes, and attraction of investments are submitted on the basis of accounting in Georgia. Records can be kept by an accountant who is on staff or outsourced by specialists from an accounting agency. If you have decided to keep accounting on your own, it is also possible, but it is worth understanding that you need to know the Georgian language and know all the peculiarities of the tax legislation of Georgia, to keep track of all changes and innovations. Accounting in Georgia is maintained in electronic databases, the interface of which is fully in Georgian. The base is based on the Georgian chart of accounts, only some of which have been translated into English.
To start accounting, you will first need to enter all data on transactions on the current account or cash desk in the electronic program, reflect all processes in the acts and invoices in the form of appropriate entries. Even for currency conversion, competent accountants are required to make entries in the accounting database. On the basis of the electronic accounting data, declarations are generated on a monthly basis.
Main types of declarations:
- profit tax Declaration;
- Income declaration;
- Property declarations;
- On Value Added Tax;
- Data on foreign economic activity.
How to file declarations in Georgia?
A declaration is submitted on the basis of data that will be provided through your personal tax office. There are penalties for failure to submit a declaration, for example, for failure to submit only one declaration the organization is fined 50 GEL. But in Georgia, they are quite loyal to errors and allow correcting the data of the declaration during the whole reporting year. Therefore, it is cheaper and better to submit a declaration and pay tax than not to do it. In order to get a login and password from your personal cabinet, you will need to apply to the tax office, where you will be provided with them after the registration procedure in the House of Justice. In the future, all correspondence and interaction with the tax office will pass through the office of the taxpayer. There is a hotline where the operator can help you.There are several programs in Georgia through which an electronic database is maintained, but they are quite outdated. For example, we keep electronic records through the cloud solution balance.ge to make life easier for ourselves and our clients. This is a website for cloud accounting, which simplifies the work with reports, declarations, and taxes. The main advantages of the cloud solution are access to data from anywhere in the world and the full functionality of commercial accounting, which allows even inexperienced accounting managers to understand tax and financial reports. It is quite difficult to understand all the peculiarities of Georgian legislation related to accounting by yourself, so it is better to turn to specialists. Leave your application on our website to get a free consultation.