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Accounting in Russia

Updated on Wednesday 16th November 2022

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Accounting-in-Russia
 
According to the Russian legislation, all companies incorporated here must register their daily accounting activities and respect the Russian law with the help of our accountants in Russia. 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. We can also offer accounting in Russia for foreign investors. 
 
 
 Quick Facts  
Who requires accounting services in Russia

If you want to register a company in Russia and develop activities, you need to align with the accounting requirements.

Applicable accounting legislation

- Russian Accounting Standards (RAS),

- International Financial Reporting Standards (IFRS)

Types of accounting services we offer

- bookkeeping,

- payroll,

- annual financial statements,

- tax returns,

- debt monitoring

Tax advice and compliance (YES/NO) Yes
We offer support for tax registration

Yes

Financial planning for company owners On request
Risk assessment and evaluation

On request 

Types of audit services

- internal,

- external,

- financial,

- compliance,

- operational

Tax minimization methods available

- tax credit planning,

- charities,

- retirement plans,

- selling investments that lost their value

Personalized financial consultancy services On request, for company formation in Russia
Investment consultancy for high-net-worth individuals

On request

Financial and analysis reports for companies

Dedicated plans, if solicited

Human resources services available (YES/NO)

Yes

Expertise provided by certified accountants (YES/NO)

Yes

Free case evaluation for companies (YES/NO)

Yes

 

Basic accounting documents in Russia 

 
The accounting department of a company requests for the original version of a document, with a signature and blue round stamp. Below you can find extra details about accounting in Russia:
 
  1. documents sent through e-mail or fax are not taken into consideration as official acts.
  2. The invoice called “Schyot” is issued for the payment of a certain service or product and is not registered in the accounting documents. The reason is that this type of invoice is seen in Russia as an invitation of payment
  3. The “Schyot Faktura” is an official document, stating the value added tax that has to be deducted from the total value of the invoice.
  4. 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. You can also ask for payroll 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. 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. We can also give information about payroll in Russia.
 
Have you decided on establishing a company in Russia? You will also have to consider the accounting legislation. That is why we recommend the services of our accountants in Russia. Payroll, HR administration, bookkeeping, audits or preparation and submission of annual financial statements are among the most important accounting aspects that are necessary in a company.
 

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 in Russia is 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 about RAS and about payroll in Russia.
 

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, 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.
 

How an accounting firm in Russia can help you

 
Accounting is important in business. Outsourcing this type of service comes with various benefits. If you use the services offered by our accounting firm in Russia, you will receive the following:
 
  • Bookkeeping.
  • Cash management.
  • Invoicing.
  • Payment processing.
  • Banking operations management.
  • Processing of varied documents.
  • Payroll in Russia.
  • Payslips issuance.
  • Reporting to the tax authorities.
  • Preparation of salaries.
  • Support for tax inspections and audits.
  • Financial accounting.
  • Tax planning.
  • Labor book maintenance, preparation of documents for employees.
 
 
Our accountants in Russia offer complete packages of accounting services, tailored to the needs of customers. Our experts know the legislation in force and also the changes that are being made. In addition, each company benefits from the services of a contact person.
 

How to calculate accounting services

 
Hiring an accounting firm in Russia involves certain costs. These are calculated based on:
 
  • Company type.
  • The number of employees.
  • Type of products and services.
  • The number of bank accounts to manage.
  • Company assets.
  • The number of monthly transactions.
  • The approximate number of customers.
 
 
This information must be provided from the beginning in order to be able to set the costs for the accounting services provided. Once we initiate the first discussion about collaboration, we can consolidate a contract that includes cost issues. Our accounting firm in Russia is at your disposal if you have a company in this country. We offer specialized services and the support of our accounting experts.
 

What are the benefits of personalized accounting services?

 
In exchange for an in-company accounting department, it is recommended that you consider the services of an experienced company. Basically, you will benefit from a one-stop service provider for the company you own.
 
Each client has special business needs, so they can rely on individual approaches and personalized services. Bookkeeping, payroll in Russia, HR management are among the most important services offered by an accounting firm in Russia.
 

What other accounting services can our clients benefit from

 
Once you get in touch with our accountants in Russia, you will receive information about the services offered for the company. In addition to those described above, customers can also access the following services:
 
  • Registration for VAT purposes, as well as the preparation of the related documents.
  • Permanent communication with the relevant authorities in order to pay the taxes and various reports.
  • Complete reporting of the financial situation to management.
  • Preparation of the company's annual financial statements.
  • Representing the company in case of inspections initiated by the financial authorities.
  • A complete review of the financial situation in the company.
  • Providing measures for optimizing certain departments in the company.
 
Every company has its own business rules, and accounting takes these aspects into account. We remind you that you can call on the accounting services of our company if you want to set up a company in Russia.
 

Why use our accounting firm in Russia

 
Our team of accounting experts in Russia has experience in this field and can offer specialized advice. Owners of companies wishing to benefit from accounting services in Russia can rely on the efficiency and professionalism of our team. We are here to provide all the necessary support to those looking for complete accounting services.
 
 

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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Call us now at +7(495)504-12-15 to set up an appointment with Evgeny M. Kuznetsov, the managing partner and founder of Herman & Smith LLC. 

As our client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Russia.

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