Accounting restoring

Jan, 16 2024

Each company must maintain accounting, as well as submit accounting and tax reporting regularly. But sometimes for some reason, accounting and tax accounting was not kept or was maintained incorrectly. Then you should appeal to companies, offering accounting restoration services in order to make your enterprise operate normally again.

When accounting recovery is required 

Accounting restoring is a complex procedure that is aimed at putting all the financial documents of an enterprise in order. During the procedure, the credentials in the database as well as reports submitted to the tax authorities are brought into compliance with the law, and corrections are made to the declarations submitted earlier.

When accounting restoring is required:

• Accounting was not maintained at all, and a gap of several months occurred in the documents for some reason.

• Documents were completely or partially lost as a result of financial force majeure.

• Accounting was maintained with lots of mistakes and violations due to an incompetent employee.

• An unscrupulous employee intentionally misrepresented accounting or tax information.

• After company’s reorganization, its status changing, and in other cases when it was not possible to switch immediately to the required accounting system for some reason.

Also, accounting restoring is useful to be carried out before major tax audits. In this case, external specialists will help to identify and eliminate the main violations and the owner could ascertain that all taxes and payments are calculated correctly.

In addition, if the company plans to automate processes, including accounting a restoring procedure should be carried out. This will help to minimize risks, eliminate mistakes and configure programs properly in compliance with current legislation.

Possible implications

If the accounting has not been maintained for a long time for some reason, gross errors have been found, and the accounting restoring procedure has not been carried out, it would attract various penalties to the company. Thus, problems with the tax authorities and other public services will inevitably arise. This will entail fines, seizure of bank accounts and property of the company.

In the most unfavorable forecast, the company’s management may be held criminally liable, and the company itself will be forcibly liquidated. In other cases, problems may arise with firm’s contractors, partners or lenders.

Accounting restoring services will be much cheaper than paying fines for mistakes in declarations anyway. In addition, this procedure will allow to avoid possible criminal penalties for tax evasion or other violations.

Cost of accounting restoring service

There are two types of accounting restoring:

• complete accounting restoring.

• partial accounting restoring.

A partial restoring procedure is required when existing reporting has given up with irregularities that need to be fixed. In addition, it is applied in cases when declaration were not submitted for several months, and information was not entered into the registers, or only certain types or sections of records are needed to be put in order. A full accounting restoring is required if the entire database was lost or it was not maintained at all. It is rather long and cumbersome process.

What determines the price of accounting restoring services:

• scope of work;

• recovery method;

• tax system used by the enterprise;

• urgency of the procedure.

The recovery process can take several weeks or 1-2 months.

Stages of accounting restoring

Depending on the specifics of the workflow, area of the company’s activity, as well as the existing gaps in accounting, the methods and timing of accounting restoring will be different. But the general procedure is about the same.

Accounting express-audit

At this stage, specialists analyze documents, conduct diagnostics. The main mistakes and shortcomings are identified, which allows you to determine the amount and timing of work to restore accounting. During this stage specific tasks are formed and the details of cooperation are specified.

Drawing up a work plan

After the experts got acquainted with the current situation, a detailed work plan is drawn up to be carried out. It prescribes not only all the necessary actions and procedures, but also the exact timing of their implementation.

Handling the documentation

Then specialists work directly on the accounting restoring. They process all primary documentation: contracts, acts, invoices, checks, etc. Based on these documents, accounting registers are re-created.

Preparation and submission of reports

After all registers and documents have been restored, the received information is verified with the data of the contractors. Tax reporting is being formed and sent. Then fines and other penalties imposed by the tax service are being paid.

At the end of the restoring procedures, recommendations on how the company will continue maintaining accounting and tax records in order to avoid future problems are developed.

VALEN Services

VALEN provides qualified assistance in maintaining and restoring accounting in Moscow and other regions. Our employees have long-term experience in various fields of law. Qualified accountants will fix the current documentation, eliminate mistakes, submit all the necessary corrective reporting, and advise on further accounting. You can leave a request for accounting restoring on our website or by phone: +7 (495) 7-888-096. We are also waiting for you at our office.

Author of the article
Accounting restoring
Valentina Khlavich
Managing Partner
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