Accounting and reporting in Ukraine

SCHNEIDER GROUP offers accounting outsourcing and other back office services.
Get in touch with us
Yuri Donets
Partner, Kyiv, Yerevan
+380 /44/ 490 55 28

Accounting outsourcing in Ukraine

SCHNEIDER GROUP offers you the possibility of outsourcing all of your accounting in Ukraine. Especially for smaller and medium-sized enterprises, the outsourcing of accounting will lead to higher cost efficiency and will enable you to focus on your core business in Ukraine. The outsourcing of Ukrainian accounting includes daily bookings and preparation of documents and reports for the Ukrainian tax and social authorities.

High complexity of Ukrainian accountancy

Ukrainian accounting and reporting is highly formalistic and bureaucratic. Tax regulations are much more relevant in Ukrainian practice than in Western accounting. Combined with the obligation to file complete reports quarterly, the effort that needs to be put into accounting in Ukraine is much higher than in Western countries.

Our services concerning Ukrainian accounting and tax reporting:

  • Conducting all daily bookings
  • Accounting of fixed assets
  • Salary accounting
  • Quarterly reports to Ukrainian tax authorities, including preparation of all relevant closings and reports to social funds
  • Calculation and reporting of all types of taxes
  • 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 Ukrainian law

Payroll accounting in Ukraine

Payroll accounting in Ukraine is an integral part of the accounting and tax system. Ukrainian payroll accounting includes generating various extensive documents about personnel administration, such as monthly overviews of working hours and diverse internal adjustments.

Payroll accounting in Ukraine – complexity and opacity

Even in standard cases, the complexity of the Ukrainian payroll accounting astonishes most Western investors. For example, 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 in Ukrainian payroll accounting.

Our services for payroll accounting in Ukraine:

  • Calculation of payments
  • Preparation of payment orders for payroll taxes
  • Calculation and declaration of withholding of personal income tax
  • Calculation and declaration of contribution to social funds
5 reasons to do payroll with SCHNEIDER GROUP
  1. We apply the 4-eye principle
  2. We do not only process payroll calculation but advise on related tax and compliance matters
  3. We build efficient and clear payroll and HR business processes
  4. We introduce optimization via automation of routine operations and data exchange
  5. We work with almost all common ERP systems

We are a proven partner of many global payroll providers.

Reporting and taxation in Ukraine

Reporting and taxation are very complex in Ukraine. In general, formal requirements prevail over substance (visible economic facts). Thus, a chart of accounts of a company cannot be designed in accordance with the economic needs of a company, but instead are subject to government regulations.

As a result, the number of accounting entries to be done by the local companies are about twice as many as those in Western Europe. Correspondingly, the amount of supporting documents to be provided or produced by a local company exceeds that in Western companiesby several times.

Accounting in Ukraine is extremely formalistic, and the legal requirement to report quarterly, in some cases, leads to an enormous amount of work.

Our accounting services help you to prepare all the necessary reports. Apart from compiling reports for Ukrainian authorities in Ukrainian, we can also prepare summaries for you in German, English, and Russian.

US GAAP and IFRS in Ukraine

In Ukraine, 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 biased.

The most important differences at a glance
  • IFRS / US GAAP imply substance over form
  • IFRS and US GAAP stipulate presentation of most items at fair value
  • Under Ukrainian GAAP only those transactions which actually occurred and were supported with sealed and signed documents can be recorded
  • IFRS and US GAAP imply special treatment of revenues generated from long-term contracts
  • Ukrainian GAAP does not allow accruals and depreciation in terms of IFRS
  • Ukrainian GAAP does not allow preliminary closing of the period before period actually ends
  • IFRS and US GAAP provide more opportunities to treat items omitted or not-recorded in local GAAP
Types of IFRS financial statements we provide:
  • Preparation of full scope IFRS and US GAAP financial statements, including Balance Sheet, Profit and Loss Statement, Statement of Change 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
Automatic transition to IFRS / US GAAP in Ukraine

A transition to Western accounting standards for financial analysis in Ukraine is unavoidable. Our financial experts can take care of the complete transition to IFRS and US GAAP standards. We can also follow the specific regulations that your company has pre-defined for internal accounting.

Management Reporting in Ukraine

As Ukrainian 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 Ukrainian 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. We can adopt standards currently in use in other countries to Ukrainian accounting.
  • Simple Aggregate Amount and Account Balance in German or English, supplemented with comments on balances, which would be different according to Western accounting.
  • Reports with cost centers
  • Short summaries in German or English about numbers which result from the reports for the Ukrainian authorities.

Timing is often a crucial point. While Ukrainian 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.

Management Reporting in Ukraine

Electronic document flow reduces the time for document processing and provides quick access to archived documents, as well as automated control, processing, and guaranteed delivery of documents. As a result, the cost of invoice processing is reduced and the transparency of financial and contractual work is increased, as document flow becomes more manageable and electronic copies are easier and faster to receive and control. This helps reduce the operational and financial risks associated with processing and storing paper documents. Various studies show that the introduction of electronic invoices saves up to 70% in both time and money compared to paper documents. For more information, click here.