Accounting for IT companies in Ukraine
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I’m thrilled to share with you the significant tasks and objectives of accounting for companies in the IT industry as a specialist in accounting outsourcing for Western Consulting Group. One of the sectors with the fastest growth rates worldwide is the information technology sector, which is also developing rapidly in Ukraine. The widespread use of modern technology, devices, and tools—many of which rely on specific programs—highlights the significance of software development, enhancement, modification, correction, and improvement as a key element of contemporary business.
In contrast to other service sectors, IT companies’ activities are very specialized. Many European and international laws, including those of Ukraine, reflect this. As a result, IT companies have unique traits related to, among other things, taxation, income creation, and perks. Therefore, it’s critical to comprehend the fundamental company operating principles, financial strain, and specifics of making a profit at these organizations. All of these elements depend on how the activity is carried out, which establishes the sources and sums of revenue and the taxes, fees, and deductions that must be made.
Our goal is to lessen financial strain while assisting IT companies in achieving optimum financial results. We’ll also go through how to properly do business on Ukrainian soil to avoid making the planning and execution of reports and tasks more difficult. We’ll also look at managing high risks (such as tax issues) and recruit partners and staff on the most advantageous terms for everyone. We have knowledgeable IT accountants and finance experts on staff that can answer any of your inquiries.
An accountant in an IT company: a full-time employee or an engaged specialist?
Regarding accounting in IT companies in Ukraine, hiring an in-house accountant or outsourcing accounting services is quite common. As a rule, most companies have the position of chief accountant. Still in addition to that, the company may employ one or more accountants, accounting and audit managers, and financial management specialists. However, without extensive experience in IT, in-house accountants often make common mistakes that lead to unjustified financial losses and an excessive fiscal burden on the company.
Choosing a specialist with years of experience working with IT companies is essential to avoid these shortcomings and protect the company. In Ukraine, there are several ways to hire such a specialist on the most favorable terms, including cooperation with a company that trains such specialists and provides relevant services on an outsourced basis or the involvement of a specialist from such a company in permanent work within the company’s office.
Alternatively, the company can prepare and train an in-house accountant according to the program of such a company, obtain consultations from its specialists, and periodically evaluate the activities of the in-house accountant by highly qualified specialists. Outsourcing accounting services can be a cost-effective solution that ensures high-quality and professional accounting services while minimizing labor costs and avoiding common accounting mistakes.
Common accounting mistakes in IT companies include:
- The transfer of rights to ownership of the results of the intellectual activity of IT developers is often carried out as a service transaction, which leads to the obligation to pay VAT. In contrast, royalties from the transfer of intellectual property rights are not subject to value-added tax.
- Royalties on the transfer of rights to the results of the intellectual activity of programmers can be replaced by the item of salary payment, which is also subject to social security contributions and military duty, increasing the unproductive expenses of the reporting period.
- Inaccuracies and false data in expenses for developing programs and applications, databases, web pages of varying complexity, etc.
- Incorrect accounting of assets, especially intangible assets, leads to excessive taxation of companies, including those in the IT industry.
Advantages of the specialists of the Accounting Company “Saved Assets”
When it comes to managing the accounting of your IT company in Ukraine, it’s important to have experienced professionals handling your finances. The accounting company “Saved Assets”, which is part of the holding of Western Consulting Group professional services, provides a team of expert accountants who specialize in working with IT companies.
To ensure the high professionalism of the chosen specialist, it is important to track their work and assess the amount of tax, fees, and other deductions paid to state and local budgets for the current period. Therefore, consultants from “Saved Assets” work closely with leading IT companies in Lviv and other cities in Ukraine. They are always ready to provide information for obtaining recommendations and feedback on the work of specific specialists and the company.
What sets the team at “Saved Assets” apart is their significant experience working with IT companies and managing the accounting of legal entities and individual entrepreneurs specializing in IT services. They also hold international certifications, such as the SAR/SIRA certificate, which confirms the presence of specific practical skills in accounting according to international standards – a mandatory option for foreign clients. Additionally, the team conducts an express audit upon client request to study the detailed picture of the company’s activities and tax payments for previous reporting periods.
Every professional on the team is responsible, organized, efficient, and experienced in managing accounting for high-tech companies in Ukraine and beyond. Trust “Saved Assets” to handle your finances and optimize your tax payments while avoiding potential penalties and legal consequences.
The advantages of choosing “Saved Assets” for your IT company’s accounting needs including:
- Experienced professionals with a high rating in working with IT companies
- Certification in international accounting standards
- Express audit upon client request
- Specialization in information technology services
- Years of experience working with high-tech companies in Ukraine and beyond.
Checking previous accounting activities and improving the fiscal picture
Imagine this scenario: You’re an IT company in Ukraine, feeling pressure to manage all aspects of your business, including accounting and finance. But let’s face it, you’re an IT expert, not an accountant. This is where outsourcing accounting services can be a lifesaver. By partnering with a high-level accounting and audit professional, you can undergo an express audit that will allow you to analyze your company’s past performance, identify areas of improvement, and optimize your fiscal load. The expert can help you find effective and lawful ways to reduce excessive fiscal burdens in the current reporting period, nullify or substantially reduce unjustified financial risks and losses, identify hidden reserves, and select alternative schemes for conducting business activities, creating and selling intellectual property, and providing high-profit services and consultations.
At the “Saved Assets” accounting company, we understand the importance of this process for IT companies. Our mission is to help you achieve ambitious goals and make your business more profitable, convenient, and automated. We learn from world leaders in the industry to maximize your potential and make the most of your opportunities while minimizing your costs, risks, and time spent on financial, tax, and accounting management. With just three to five days, you can get a comprehensive picture of your business and uncover its hidden potential. Then, by outsourcing accounting services, you can focus on what you do best – developing innovative solutions and growing your business.