Why Does a Business Need Accounting and Bookkeeping Services?
Bookkeeping can be explained as the procedure of noting the daily transactions whereas accounting encapsulates a much wider concept of recording, interpreting, classifying, analyzing, reporting, and summarizing the collected data.
A business needs to have a clear picture of the utilization of funds. It should have a clear idea about the income and expenses that it deals with its stakeholders on a daily basis. Maintaining such transactions turns out to be an essential part and that’s where accounting and bookkeeping come into the picture. These services help a business to keep a daily check on its daily dealings and also provides an opportunity to foresee the future and build business plan accordingly.
Georgian Law on Accounting, Reporting and Audit
On June 8th, 2016, the old law related to Georgian Accounting System was replaced by a new one. The main aim of replacement was the improvement and perfection of the accounting system, the generation of the audit, and financial reports. The scope, as compared to the earlier one, has been widened and has been divided into four categories, namely,
- Person of Public Interest (PPI)
- Parent Company
VAT Registration and Double Tax Treaty in Georgia
The standard VAT Rate in Georgia is 18%. Companies in Georgia are eligible for VAT payment on the basis of the following criteria:
- If the economic activities performed by business in a span of 12 months generate a revenue of more than 100,000 GEL
- Companies indulged in the import or export of excisable goods
- Companies formed after the reorganization
Georgia has signed double tax treaties with more than 54 countries and follows OECD or UN Model Tax.
Georgia VAT Number Format
Businesses in Georgia that are eligible to pay VAT will be issued a VAT Identification Number. This is to be verified by the Ministry of Finance of Georgia and it has a specified format. It must include:
- VAT Return Period (monthly)
- Business Established Elsewhere (reverse charge rule applies)
- Registration Thresholds
Sources of Business Income in Georgia
The following income types are treated as a source of business income in Georgia:
- Interest Income
- Dividends Income
- Royalty Income
- Income from Immovable Property
- Other Income
Business Setup Worldwide Accounting and Bookkeeping Services
Business Setup Worldwide has been dealing with a large number of clients in setting up a business globally. We understand the core levels of business establishment process and offers a large portfolio in accounting and bookkeeping services. Some of the services we provide are:
- Bank account reconciliation
- Payroll check writing and administration
- Tax planning and preparation
- Preparation of sales tax
- Corporate secretarial services
- Preparation and maintenance of international tax structure
- Audit-flows, cash-flow forecasting
Benefits of Availing Accounting and Bookkeeping Services
Availing accounting and bookkeeping services takes the business pitch to the next level. Let’s have a clear understanding of the benefits that can be derived from these services.
Once the financial transactions have been recorded, they can be traced easily at a later date, for ready reference.
2. Future Possibilities
A properly maintained book of accounts presents the possibility of business expansion.
3. Exposure of Malpractices
Records help to trace and sort any type of malpractice, if present in the financial system.
Account books present a clear idea about the financial stability and strength of a business.
5. Budget Formulation
With proper records in place, it becomes easy to make changes in the business budget as per one’s corporate requirements.
6. Minimizing Issues
Up-to-date financial records help to avoid any kind of financial loss.
A business consultant acts as a guide for its clients. At Business Setup Worldwide, we offer a large profile of business services to our clients. We have successfully maintained a record of satisfied clients globally. Our team of professional experts look into the matters of the business proceeding and frames the business framework. They are not only confined to the accounting services but also help by sorting the legal proceedings that is a mandate for any business to clear the setup process.