At the heart of accounting activity lies the principle of accuracy and professionalism, which Elan Consultingrises to a new level. We understand that keeping the accounting of a small company in Bulgaria represents a serious challenge and responsibility. Our team of highly qualified accountants has extensive experience in managing financial flows and documentation, which allows us to offer not just a service, but a partnership for the growth and development of your company.
Any business, regardless of its size, needs reliable and accurate accounting services. We at Elan Consulting are aware of this and approach the needs of each client individually, offering complex solutions adapted to the specifics of your business. One of the most important aspects of our work is to carry out end-of-life operations at annual closure, which ensures accurate and correct reflection of the financial condition of the company.
We understand how important it is for you to be informed about timelinesand Stageson annual accounting closure. In this context, we focus on the details around the annual closure for 2024, and we also set the deadlines set by the National Revenue Agency (NRA). This task requires careful planning and advance preparation to ensure that all documents for annual accounting closureare complete and accurate.
Annual accounting closurerepresents a critical process that requires a thorough understanding of accounting standards as well as the current legal framework. Our role is to give you peace of mind that your business is compliant with all regulations, and to save you the time and effort you would invest in this activity. Among the main topics that our team will look at in detail are accounting closure per monthas well as the detailed execution of end-of-life operations at annual closure.
Elan ConsultingIt also pays special attention to annual accounting closure in start-up companies, offering specialized advice and support for this sector. Whether it's startups or long-established businesses, we're here to help navigate complex accounting and tax procedures.
What is the Annual Accounting Closure?
Many of our clients are interested in how the annual accounting closure is carried out, what it is, what are the deadlines and stages through which it takes place. This is especially difficult for foreigners who have opened a business in Bulgaria, but it does not mean that they are not subject to the same regulations that Bulgarian citizens are subject to. In this section, we will try to comprehensively answer all questions about the annual accounting closure.
What does the term “annual accounting closure” mean?
Annual accounting closureis a complex process that summarizes the financial and economic activities of an entity for a fiscal year, and is carried out in accordance with national legal provisions and standards. This process includes actions such as closing income and expense accounts, preparing annual financial statements (Balance Sheet, Cash Flow Statement, etc.), and working capital analysis.
Documents required to carry out an annual accounting closure
For the successful implementation of annual accounting closure, it is necessary for enterprises to have at their disposal a mandatory set of documents that cover both primary and secondary accounting documents, as well as analytical and turnover payrolls for the previous fiscal year.
AND. Primary accounting documents
Primary accounting documents are the basis for the accounting process and include:
- Invoices: documents that confirm the making of sales or purchases.
- Contracts: legal documents that regulate the relationship between two or more parties.
- Bill of Lading and Goods Receipts: documents related to the transportation and delivery of goods.
- Income and expenditure cash orders: documents on cash operations at the enterprise.
II. Secondary accounting documents
Secondary accounting documents include:
- Accounting registers: books in which data from primary documents are reflected and systematized.
- Statements of income and expenses: documents that summarize the financial results for a certain period.
- Advance statements, analytical and working balances: documents that provide information on the movement of funds and turnover on accounts.
- Logs of purchases and sales, cash book: books to cover specific operations.
Evidentiary power of accounting documents
Primary accounting documents serve as evidence of the business operations carried out and enjoy formal evidentiary force for the statements contained therein. Secondary accounting documents, on the other hand, constitute summary information based on primary documents and are essential for the preparation of the financial statements.
According to The Accounting Act, the accounting documents must be drawn up in Bulgarian language and in BGN, and may also be drawn up in a foreign language in foreign currency for transactions with foreign counterparties. Primary accounting documents must contain basic information such as the name and number of the document, date of issue, information about the issuer and recipient, as well as the subject of the business operation.
Important! If you use a cash register, it is enough to provide your accountant with a monthly report on the payments received for which you have issued a fiscal voucher!
Stages of annual accounting closure
The annual accounting closure is carried out in accordance with the National Accounting Standards. For example, SS No. 1 (Accounting Standard No. 1) “Presentation of financial statements” establishes the basis for the preparation of financial statements, aimed at ensuring a clear, true and fair presentation of the financial position of the enterprise. According to this standard, financial statements must provide detailed information about assets, liabilities, equity, income, expenses and cash flows, as well as a number of other data.
The first stage is aimed at preparing the necessary documentation and informationwhich are the basis for the preparation of the annual financial statements. Our team emphasizes the importance of starting this process at least one month before the end of the fiscal year to ensure sufficient time to collect and analyze all necessary documents.
During the second stage A thorough analysis of the accounting accounts is carried out, including a review of purchases, sales, and recurring expenses. This stage is critical for the accurate reflection of the financial activities of the enterprise and facilitates the subsequent closure of accounting entries.
The third stage of the annual accounting closure process is Inventory of assets and liabilities. This stage is extremely important, since through it the verification of the presence and condition of all assets and liabilities of the enterprise is carried out, comparing the actual stocks with those reflected in the accounting books.
The purpose of the inventory is to confirm the real existence of assets and liabilities and ensure the accuracy of accounting records. This includes a physical inspection of tangible assets, such as goods, equipment and other material values, as well as a review of documentation of financial assets and liabilities.
At the next stage the starting balances and the debit and credit turnover of all accounts are analyzed, with the aim of determining the financial result for the reporting period. For our part, professional assistance is provided in the preparation of the turnover payrolls, which are the basis for the preparation of the annual financial statements. The closure of accounting accounts makes it possible to adequately plan and budget for the future activities of the enterprise.
The final stage involves the compilation of the annual financial report, which represents the culmination of the entire process of annual accounting closure. Our team emphasizes the importance of this document, which provides clear and accurate information about the financial condition of the company, its income, expenses and the amount of assets. The report serves to inform shareholders and other stakeholders and plays an important role in making decisions about future investments.
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