The Russian accounting rules are on top of pedantic formalism. Everything must be well-documented. A constant change of the rules and a harsh punishment for their violations even if violations have been committed several years ago is one of many aspects that should be kept in mind while doing business in Russia. In addition, Russian financial statements are often insufficient for Western managers. Therefore, they have to be aligned with the Western accounting principles.

We can assist you in many ways in tackling these challenges:

ACCOUNTING SYSTEM SET-UP AND PROVIDING ACCOUNTING SERVICES

When a representative office or a company is established, a reliable infrastructure should be set up and committed employees should be hired. In this busy period which requires being in a constant contact with Russian authorities and undertaking many registration actions, we can do all the accounting for you.

In the first three-twelve months we can do all bookkeeping services for your company, so you can peacefully search for a qualified accountant matching your criteria. At the same time, we won’t forget to inform you about all account activities and payrolls. We could also draft financial reports according to the standards of a parent company.  

INTERNAL AUDITING

Internal auditing helps to minimize risks that are often faced by subsidiaries of international companies on the Russian market. Those risks are caused by constantly changing legal base and business processes. Therefore, we could check accounting and fiscal accounting, cash operations, payrolls, business trip documentation, and asset management in order to ensure compliance. Additionally, we could check whether legal requirements in relation to employments issues are observed (job descriptions, employment agreement, internal work regulations, employment records, and internal documentations).

At the same time our legal department could check the most important contracts of your company in order to ensure their compliance with Russian law.

It should be noted that such checks implemented as a part of Due Diligence are incredibly important in case of company’s reorganization and before any M&A.

Internal auditing could be limited to one of the above-mentioned spheres.

DRAFTING REPORTS FOR MANAGEMENT OF A PARENT COMPANY

While ensuring compliance with the accounting rules, we can help you to stay informed about financial affairs of your Russian company.

In order for you to keep records in accordance to Western standards, we could undertake the following:

  • transformation of annual financial statements and companies’ earnings reports to documentation in compliance with Swiss or German legal standards, International Financial Reporting Standards, or internal standards of a parent company
  • setting up a reporting system providing information to a parent company on account activities and cash operation, payrolls, monthly financial statements, reports on revenues and capital statements
  • analysis of balance indicators, in particular, receivable and payable accounts, their payments period, data on terms and scopes of writing-offs, and changes in company’s equity
  • express analysis of company’s activities
  • budget and financial planning.

ACCOUNTING CONSULTING

Does your accountant have questions after we have handed over responsibilities? We are here to answer them.