Accounting

What an accountant does

Every month an accountant records income and expenses, prepares declarations and keeps track of deadlines.

They also advise on how to arrange salary, dividends and expenses so that it is both lawful and favourable.

Our role

We are not an accounting firm. We choose a licensed accountant who suits your business and your language, and we connect you.

When the accountant speaks only Georgian, we translate and explain every important letter to you.

Choosing an accountant

We choose an accountant by the type of your business: freelancers, trade, IT and services each need different experience.

We check how many foreign clients they work with, how they answer letters and how quickly.

We arrange a first meeting so that you can see, before any contract, whether you feel comfortable.

Language

Many accountants speak English or Russian. Some speak only Georgian but are very experienced.

If language is a barrier, we stay in the middle: we translate letters, calls and reports.

A report in your language should be short: what came in, what you paid, which deadline is coming.

Getting started

At the start the accountant receives the charter, the registry extract, the bank account details, contracts and access to the portal.

If the company has already been trading, the declarations for past periods are requested too, so the history can be checked.

In the first month we agree together how documents will arrive: in what form, to whom and by when.

Access and permissions

The accountant needs access to the tax portal and, often, to bank statements.

Access is set up so that the accountant can file a declaration, but only you can move money.

When you change accountants, access must change at once. We always remind you of this.

The monthly cycle

At the start of the month the previous month's documents go to the accountant: statements, invoices, receipts.

The accountant records and checks them and prepares the declarations. If there is a question, they write to you.

The declaration is filed before the deadline and you receive a summary: which tax is due and when.

Bank statements

The bank statement is the backbone of the accounts - every item of income and expense shows up in it.

Every payment needs an explanation: from whom, for what, against which invoice.

The more clearly you describe a payment at the bank, the fewer questions the accountant has.

Source documents

An expense counts only when a document supports it: an invoice, a receipt, a contract.

A foreign receipt or invoice is often accepted, but it must carry the company's name.

We collect photos of receipts in one folder each month - a simple habit that saves a lot of time.

Electronic documents

In Georgia many documents - invoices, waybills - are issued electronically on the tax portal.

When you work with local suppliers these documents appear on the portal and need confirming.

The accountant keeps an eye on them so that they are confirmed on time.

The declaration calendar

Different declarations have different deadlines - monthly, quarterly, annual.

The accountant draws up a calendar for your company, and we remind you of the important dates.

The calendar changes when the business changes: an employee, VAT, property.

Profit tax and income tax

For a company, profit tax mostly arises when profit is distributed. For an individual entrepreneur it is charged on income, depending on the regime.

Some expenses unrelated to the business may be treated as a distribution and taxed.

That is why the accountant explains every unusual expense to you in advance.

VAT

A VAT payer files a monthly declaration, and VAT must be shown correctly on invoices.

Services supplied abroad and exports have special rules.

The accountant assesses from your turnover whether VAT registration is required and whether it pays off.

Salary and withholding

Tax is withheld from an employee's salary and paid to the budget, together with the pension contribution.

The employment contract, the payroll sheet and the declaration are prepared every month.

For a foreign employee or someone working remotely the rules may differ.

The director's pay

A director or owner is paid either a salary or a dividend. Each is taxed differently.

Which is better depends on your residency, your income and the rules of your home country.

The accountant works out this choice at the start of the year, not at the end.

Dividends

Profit is distributed as a dividend by a formal decision, and it has its own taxation.

Each dividend payment needs a document and a declaration.

If you receive the dividend in another country, a double taxation agreement may help.

Property tax

If the company owns property - an office, a car, equipment - property tax may arise.

For a natural person, property taxation depends on income and on the type of property.

Before a purchase the accountant calculates this cost for you in advance.

Annual reporting

At the end of the year the company prepares its annual financial statements, according to its category.

For a small company this is simple. A larger one may also need an audit.

Banks and partners want the annual statements as well - they are a sign that the business can be trusted.

Cash

Cash transactions complicate the accounts and draw questions from the bank.

If you receive or pay cash, every transaction needs a document.

Often the simplest rule is: everything through the bank, cash only as an exception.

Foreign invoices and exchange rates

An invoice in a foreign currency is converted into lari at the rate and on the date set by law.

Exchange differences may be booked as income or as an expense. The accountant handles this.

The invoice date and the payment date often differ, and both matter.

The monthly report

Every month you need a short report: income, expenses, tax, balance.

We prepare or translate the report into your language, on one page.

That way you see how the business is doing, not just that a declaration was filed.

Budget and forecast

A good accountant does not only record the past but also helps you plan ahead.

A tax forecast, cash flow and the timing of large expenses - all of this can be planned.

A short meeting with the accountant at the start of the year avoids many surprises.

Bank requests

From time to time the bank asks for financial information: statements, declarations, contracts.

When the accounts are in order, these requests are dealt with quickly.

We answer bank requests together with the accountant, on time.

Fines and late-payment interest

A late declaration or unpaid tax brings a fine and late-payment interest.

The fine is often small, but fines add up and spoil the record - and the bank sees it too.

Keeping to deadlines is the accountant's main task, and we check twice.

Overdue declarations

If you have missed declarations, the sooner they are corrected the better.

The accountant rebuilds the history, files the declarations and calculates the fines.

Sometimes a voluntary correction has a lighter outcome than a problem found during an audit.

Overpaid tax

If you have overpaid tax, the money can be refunded or offset against later taxes.

This does not happen automatically - a request is needed.

The accountant checks the balance on the portal and does not leave an overpayment unclaimed.

Changing accountants

If you are not happy with your accountant, you can change. What matters is that the handover is organised.

All documents and data are requested from the old accountant, and portal access is changed.

The new accountant checks the history so that old mistakes do not carry on.

Audits

A tax audit can come to any company. It is a routine procedure.

During an audit the accountant represents you and submits the documents. We translate every letter.

If the documents are in order, an audit goes calmly.

Reports for your home country

Your own country may need the Georgian company's accounts - for your tax return or for consolidation.

The accountant prepares the report and we translate it, notarised where needed.

Check in advance with your adviser which form they need.

Software and the cloud

Accountants use different software. What matters for you is receiving reports and handing over documents easily.

We often set up one cloud folder where both sides can see everything.

In that folder each month is separate - statements, invoices, receipts.

Confidentiality

The accountant sees your financial information. A confidentiality clause should be written into the contract.

We see only the information needed for translation and coordination.

If you prefer, our access stays limited and you work with the accountant directly.

Closing the year

At the end of the year the accountant checks every account, balance and declaration.

It is a good time for decisions: a dividend, an investment, the plan for next year.

When the year is closed we arrange a short meeting, in your language.

The contract with the accountant

The contract with the accountant should state what the service includes, the deadlines and what it does not include.

It matters who is responsible for a fine if it was caused by the accountant's mistake.

We translate the contract and explain the key clauses before you sign.

How to communicate

One channel with the accountant works best - email or a messenger - so that questions do not get lost.

From the start we agree on reply times and on who sends what to whom.

When we are in the middle, every letter goes to both sides, with a translation.

Planning for growth

As the business grows, the accounts change: a new employee, VAT, clients from a new country.

Before every big change a short talk with the accountant is better - then nothing needs fixing afterwards.

Once a year we arrange a review: what has changed and what needs updating.

Pausing the business

If the business stops for a while - travel, family, a new project - the accounting does not stop.

Zero declarations are still filed, and the accountant's service often shrinks during this period.

If the pause is long, closing or another form may be better. We weigh this with the accountant.

Accounting for an individual entrepreneur

The accounts of an individual entrepreneur are simpler than an LLC's: fewer documents and declarations.

But the deadlines are just as strict, and watching the threshold is especially important.

An accountant often offers an individual entrepreneur a smaller package, sized to match.

The owner's loan

An owner often lends the company money at the start, or the other way round - takes money out of the company.

Such a loan needs a contract and correct bookkeeping. Otherwise it may be treated as a distribution and taxed.

We agree every such transaction with the accountant in advance.

Is the expense really for the business

An expense is a business expense only when it serves the business: equipment, an office, travel for work.

A personal expense paid from the company account is a problem - it may be treated as a distribution.

When in doubt, it is better to ask the accountant first and pay afterwards.

A seasonal business

If income is seasonal - tourism, events - some months are busy with transactions and others have almost none.

Declarations are still filed every month. At the seasonal peak you need more frequent contact with the accountant.

We plan the money for taxes during the season, so that the quiet months bring no problems.

Common mistakes

Handing over documents months later, all at once. Mixing personal and business expenses.

Changing accountants without changing portal access. Ignoring a letter from the bank.

A simple monthly routine avoids all of this.

What we need from you

The type of company or individual entrepreneur, the business activity and the expected turnover.

Whether you have employees, whether you are a VAT payer, whether you own property.

Which language you speak and in what form you would like your reports.

Price

The accountant's fee depends on the number of transactions, staff, VAT and language.

Our coordination and translation are separate lines, agreed in advance.

We add nothing to the accountant's price.