Accounting outsourcing in Belarus
SCHNEIDER GROUP offers you the possibility of outsourcing your entire accounting in Belarus. Especially for smaller and medium-sized enterprises, such outsourcing will lead to higher cost efficiency and will enable you to focus on your core business. The outsourcing of accounting includes the daily bookings and the preparation of documents and reports for the tax- and other authorities.
Belarusian accounting and reporting is highly formalistic and bureaucratic. In practice, tax regulations are much more relevant. Combined with the obligation to file tax and statistics reports monthly in some cases, the effort which needs to be put into accounting, is much higher than in Western countries.
Our services concerning Belarusian accounting and tax reporting:
- Conducting all daily bookings
- Accounting of fixed assets
- Salary accounting
- Reports to social funds
- Calculation and reporting of all types of taxes, which include the preparation of all relevant closings
- Statistical reporting
- Preparation of all documents for monetary transactions
- Filing of bank reports
- Consulting on daily accounting and taxation matters
- Preparation of all HR documents demanded by Belarusian law.
Payroll accounting in Belarus
Payroll accounting in Belarus is an integral part of the accounting and tax system. It includes generating various extensive documents about personnel administration, such as monthly overviews of working hours and diverse internal adjustments.
Even in standard cases, the complexity of Belarusian payroll accounting astonishes most Western investors. For example, when taking a vacation, an employee does not receive his regular salary but the average salary of the previous 12 months. While the regular salary is reduced by missed working days, the salary during vacation is based on calendar days, which leads to even more complex and opaque calculations.
Our services for payroll accounting and salaries in Belarus
- Calculation of payroll bimonthly (according to Belarusian law)
- Calculation and declaration of contribution to social funds
- Calculation and declaration of withheld personal income tax for each employee, resident, and non-resident
- Calculation of payroll taxes and social taxes and preparation of payment orders
- Calculation of payments for sick leave
- Calculation of payments for vacations
- Monthly calculation of unused vacation
- Data on personal income (2NDFL), personalized pension fund reports, and pay slips with details about salary calculations
- Monthly preparation of booking overviews related to payroll accounting
- Management reports on payroll accounting tailored to your needs
- Preparation of all salary / tax / pension payment orders
- Annual overview of all employee vacation
- Annual preparation and updates of the staff member list
5 reasons to do payroll with SCHNEIDER GROUP
- We apply the 4-eye principle
- We do not only process payroll calculation but advise on related tax and compliance matters
- We build efficient and clear payroll and HR business processes
- We introduce optimization via automation of routine operations and data exchange
- We work with almost all common ERP systems
We are a proven partner of many global payroll providers.
US GAAP and IFRS in Belarus
In Belarus accounting procedures are dominated by tax regulations rather than by commercial standards. Furthermore, due to missing documents, many transactions which have already been concluded will not show up in the accounting, and thus the economic representation of the company will be distorted.
A transition to the Western accounting standards for financial analysis is unavoidable. Our financial experts can take care of the complete transition to Western accounting standards. We can also follow the specific regulations that your company has pre-defined for internal accounting.
The most important differences at a glance
Belarus is making a consistent effort to migrate towards IFRS, but this will take many years. Currently, the most significant differences are:
- IFRS / US GAAP focus on substance over form
- IFRS and US GAAP show most assets at fair or present value
- Under Belarusian GAAP, only those transactions which actually occurred and which are supported with signed documents can be recorded in the accounting system
- IFRS and US GAAP treat revenues generated from long-term contracts differently
- Belarusian GAAP has significantly different rules for accruals and depreciation than IFRS
- Belarusian tax accounting allows changes to prior periods which create reconciliation issues in IFRS
- IFRS and US GAAP provide more opportunities to capture revenue and expense that is omitted in local GAAP
Types of IFRS financial statements we provide:
- Preparation of all IFRS and US GAAP financial statements, including Balance Sheet, Profit and Loss Statement, Statement of Changes in Equity, Cash Flow, and Notes
- Preparation of limited scope, pro-forma financial statements under IFRS or US GAAP
- Preparation of management reports under IFRS and US GAAP
Transformation from Belarusian standards to IFRS / US GAAP
To better understand and use your Belarusian accounting data, it should be converted or transformed to Western accounting standards. Our financial experts are knowledgeable and have the right certifications to complete transformations to IFRS, US GAAP, or to your specific corporate reporting standards. We provide several different options for this service.
We also work closely with our business partner, ITAN, a company that implements leading software solutions for international financial and management accounting.
Management Reporting in Belarus
As Belarusian accounting regulations are very formalistic and consequently have very little economic significance, it is often recommended to prepare additional reports based on Western accounting standards. Cost centers and cost unit calculations are unknown in Belarusian accounting. Even cost categories are not represented in the standard profit and loss statements.
As experts in the field of financial analysis, we will generate various types of management reports for you:
- Management reports according to your requirements. You might have Excel-Standards, which are already used monthly in other countries. We can adopt these to Belarusian accounting.
- Simple Aggregate Amount and Account Balance in German or English, supplemented with comments on balances, which would be different according to the Western standards
- Reports with cost centers
- Short summaries in German or English about the numbers, which result from the reports for the Belarusian authorities.
Timing is often a crucial point. While Belarusian authorities don’t know about Fast Closing (very quick closing, using some estimations), we are aware of your need to receive a report shortly after the end of the reporting period.