Company Formation Russia



Accounting in Russia

Updated on Thursday 30th September 2021

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Accounting-in-Russia.jpgAccording to the Russian legislation, all companies incorporated here must register their daily accounting activities, by using specific documents and procedures specified under the Russian law. The fiscal and commercial law requires companies to submit their accounting documents once in a financial year, which corresponds to the calendar year. If you want to open a company in Russia, our company formation specialists in Russia can present to you the legal requirements for accountancy procedures. They can also help foreign entrepreneurs establish the business presence in Russia by handling the registration procedure. We can also offer accounting in Russia for foreign investors. 

Basic accounting documents in Russia 

The accounting department of a company will always request for the original version of a document, which requires a signature and blue round stamp; documents sent through e-mail or fax are not taken into consideration as official acts. According to the accounting legislation, the invoice – called “Schyot”, which is issued for the payment of a certain service or product, is not registered in the accounting documents; the reason is that this type of invoice is seen in Russia as an invitation of payment
The “Schyot Faktura” is an official document, stating the value added tax that has to be deducted from the total value of the invoice. The document, alongside with the certificate for services provided or delivered products, is registered in the business accounting. Our company formation agents in Russia can provide you with more information on accounting in Russia

Personnel accounting in Russia 

Accountants in Russia hired after you set up your business activities will spend a large proportion of time registering documents related to the financial situation of your personnel. This is determined by the fact that, under the Russian employment law, all companies must pay their employees twice a month. When taking a holiday, the salary received by the employee in that time will be calculated according to the average income received in the last twelve months. 
The accounting department must register, for each employee, a table showing the days in which the employee was on duty, the days of absence and illness; our accountants in Russia can provide you with further details on this subject.

Accounting services for companies in Russia

If you decide on externalizing the accounting in Russia for your company, you should talk to our team of professional accountants in Russia and find out more about the support we can offer. Below, you can find a few of the accounting services we can offer:
  • Payroll and bookkeeping services;
  • Tax calculation, tax returns, and monthly accounting system closing;
  • Monthly financial reports for company owners and directors, on request;
  • Support for varied bank transactions and payments;
  • Internal audits for Russian companies.
Our team of accountants in Russia can handle a wide range of financial matters for companies with establishments in Russia, in complete respect with the International Financial Reporting Standards and also local legislation. You can benefit from complete accounting services and a tailored offer if you get in touch with one of our experts.

What is bookkeeping?

Bookkeeping involves monitoring all the payable/receivable accounts of a company, issuing invoices, plus the management of banking operations, primary documents processing, cash management, effecting payroll and many more. Having structured and updated financial records is extremely important for a company in Russia, and this helps in issuing all sorts of financial reports. Journals and ledgers, petty cash books, daybooks and all sorts of varied income statements can be kept and verified by a team of accountants in Russia that you can hire for your business. We will also add that booking represents a significant part of the accounting services we can provide for your business in Russia, so feel free to talk to one of our specialists and find out extra details.

What is payroll?

Payroll is another important part of the accounting regulations for companies in Russia. Distributing the electronic payroll records, calculating the payroll taxes, preparing to deliver the salaries for employees, plus other duties are part of payroll services provided for your company in Russia. It is quite beneficial to externalize payroll services for your business in Russia and rely on the support of a professional accountant that can take care of such aspects for your firm. It is good to know that payroll services are not expensive, however, these will be established in accordance with the number of employees, size of the company, etc. We remind you that a personalized offer can be provided by our team of accountants in Russia if you send us your requests and other details. Also,  if you are interested in company registration in Russia, feel free to talk to us.

What is RAS in Russia?

RAS refers to the Russian Accounting Standards, also called the Russian Accounting Principles (RAP). RAS is the regulatory body of all financial accounting and reporting standards in Russia that is used by the tax authorities in this country. Cash flow statements, balance sheet, and other income statements are part of RAS. If you need more details in this matter, please feel free to solicit our help and guidance. Our accountants in Russia can provide in-depth support and assistance for companies in this country.

Rules for joint-stock companies in Russia

According to the laws in Russia, joint-stock companies must publish the accounts with the help of an audit. In the case of companies with an annual turnover exceeding RUB 400 million or RUB 60 million in balance sheet assets, yearly audited financial statements are solicited. An internal auditor in Russia can take care of this aspect, so please feel free to solicit help.

The purpose of accounting in Russia

Accounting services are important to any kind of company in Russia. All the financial activities in a firm must be recorded with the help of journals, payroll accounts, sales contracts, balance sheet, and other important documents. An accounting department knows the flow and how to achieve the company’s targets from this point of view. Instead of dealing with a whole accounting department in your company, you should hire the services of a dedicated firm. Our accountants in Russia can help you right away, so make sure you address your inquiries to our team.

Accounting regulatory bodies in Russia

The Ministry of Finance and the National Bank of Russia are the institutions that oversee all the financial matters related to businesses in this country. This also refers to the accounting requirements that each company needs to respect. Entrepreneurs in Russia must consider the services of an accounting firm before the operations are started. Our specialists can provide assistance and complete support in this matter.

Taxation in Russia

The tax regime in Russia is appealing to most foreign entrepreneurs having businesses in this country. The corporate income tax is set at a 20% rate, but there are tax exemptions for specific activities developed in Russia. 18% of the corporate tax is sent to the regional administrations in Russia, while the 2% rate is used by the government. The standard VAT rate in Russia is 18%, but lower VAT is applicable to particular types of products and services.
Both local and foreign entrepreneurs can consider and adopt the available tax minimization methods in Russia to cut down the amount of taxes in the company. A long-term dedicated financial planning is a great solution for investors in Russia who will know from the start what kind of tax minimization tools might be appropriate. Subscriptions and credit rates paid in advance, property repairs, and anticipated gifts for employees can be part of a tax minimization plan in the company. You can discuss with our accountants in Russia and find out more about the taxation in Russia and also about the proper tax minimization tools for your company.

FAQ about accounting in Russia

1. Can I ask for externalized accounting services for my company in Russia?
Yes, you can consider outsourcing the accounting services for your business in Russia instead of hiring an entire department and involve different costs. You can speak to our team of advisors in Russia for extra details.
2. Can I get help for tax registration and calculation?
Yes, our experts can handle the tax registration and calculation for companies in Russia, as part of the accounting services we can provide.
3. Does an accountant take care of payments in a company?
Yes, all receivable and payable accounts enter the attention of our specialists who can also handle varied payments, respecting the financial operations in the firm.
4. Can I get payroll services for my company in Russia?
Yes, payroll services are important to any kind of company in Russia. Our accounting services also comprise payroll services, so feel free to send us your requests in this matter.
5. Can I receive bookkeeping services for my business in Russia?
Yes, payroll and bookkeeping are part of the accounting services we can provide for your company in Russia. A personalized offer can be arranged for your Russian business, so feel free to talk to us.
6. Do I get support for annual financial statements?
Yes, companies in Russia must fill the annual financial statements and particular firms with turnover exceeding RIB 400 million/year. Our specialists can help you.
7. What are the professional accountancy bodies in Russia?
The Russian Institute of Professional Accountants (IPBR) and the International Certification Programme for Professional Accountants (CIP) are the main accountancy bodies in Russia. We have a dedicated and experienced team of accountants so feel free to talk to us.
8. What does an accounting report comprise?
A profit and loss account, the balance sheet, and specific notes are comprised of an accounting report. Each firm must have such a report, right from the beginning of the activities.
9. Do small companies in Russia need accounting services?
Of course, no matter the type of company you own in Russia, it is required to hire the services of an accounting specialist. We are here to provide the needed help for your firm.
10. Why choose our accounting specialists in Russia?
We have a dedicated team of accounting specialists in Russia, with experience in a wide range of financial aspects. You can rely on our support and professionalism right from the start.

Investing in Russia

The Russian business climate is quite appreciated by foreign investors who see Russia as a powerful financial destination with plenty of business opportunities and profits. Manufacturing, tourism, engineering, real estate, and pharmaceutics are representative and well-developed sectors that attract numerous foreign investments each year. A skilled workforce, great transportation and an appealing regime are among the advantages of Russia in front of foreign investors. Here are some facts and figures that explain the economy of Russia:
  1. Around USD 407,400 million was the total FDI stock registered in Russia in 2018;
  2. The Institute of International Finance ranks Russia 23rd in matters of FDI absorption.
  3. Luxembourg, Cyprus, Ireland, the Bahamas, and the Netherlands are the main foreign investors in Russia;
  4. The World Bank ranks Russia 28th out of 190 economies in the world, as revealed by the 2020 Doing Business report.
If you need further information on the accounting documents in Russia, please contact our company formation agents in Russia, who can offer you more details on the accounting procedures

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