Accounting

DEBAG – Transparent accounting in Russia

Challenge

When entering the Russian market and starting new business activities, the first challenge western companies have to deal with is the complex formality and bureaucracy of Russian accounting and reporting. Usually, any kind of commercial activity has to be documented, signed, and stamped which makes efficient document flow one of the most important tasks of any accountant in Russia. Combined with the obligation to file complete quarterly reports, the effort which needs to be put into accounting in Russia is far greater than in Western countries. Additionally, tax regulations are much more important in relation to Russian bookkeeping and the finance system than in Europe.
Having successfully registered its subsidiary ‘ASCOBLOC DEBAG RUS’ in October 2013 with the support of SCHNEIDER GROUP, DEBAG later also decided to outsource its entire accounting activity to its trustworthy partner until 2018.

Solution

SCHNEIDER GROUP supported DEBAG from the very beginning of the company’s activity on the Russian market. Having accompanied the German brand during the entire registration process, SCHNEIDER GROUP also carried out their accounting activity until 2018. SCHNEIDER GROUP provided Interim Management solutions and represented the client’s interests at the state authorities regarding customs and tax declarations, while in close communication with the mother company. Furthermore, SCHNEIDER GROUP provided legal consultancy for 4 years and conducted workshops for DEBAG’s employees to train them on how to use 1C in order to increase their efficiency.

Result

This project had a profound impact on DEBAG’s business on the Russian market: the German brand is now successfully operating in Russia. DEBAG is fully concentrating on its core business activity on the Russian market. SCHNEIDER GROUP offers its international clients the possibility of outsourcing their entire accounting activity in Russia. Especially for smaller and medium-sized enterprises, outsourcing accounting leads to higher cost efficiency and enables companies to focus on their core business activity. Outsourcing their accounting includes daily bookkeeping, preparation of documents and reports for the Russian tax authorities, payroll, and HR matters.

Contact us

Alexander Nuzhny
Partner, Accounting, Financial Management, Moscow
+7 / 495 / 956 55 57

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About DEBAG

DEBAG Deutsche Backofenbau GmbH has been developing baking technology for over 100 years. In 1911, Alois Paul Linder started an independent baking oven shop in Munich which became the foundation for DEBAG. His business developed and manufactured brick ovens, and quickly became the market leader for the production of trade baking ovens in the German speaking areas. Backofenfabrik Gustav Schmidt & Söhne was founded in Freiburg in 1924. The company developed and built brick ovens.

Both acquired companies were united under the name DEBAG in the early 1990s and Bautzen became the home of DEBAG. During the following years, the company underwent continuous further development particularly in Germany, and started exporting – first to Europe and then worldwide. After integrating the companies AlexanderSolia and Ascobloc, DEBAG developed into a one stop provider for baking processes, including selected areas of preparation, storage, and presentation.

There was a push for intensive and targeted expansion within Europe and other selected regions, supported by the foundation of own subsidiaries in France, Russia, Poland, and the USA. Today, its premium products and extensive services make DEBAG one of the market leaders in Germany and Europe.