Accounts reconstruction

As in any project, in accounting records recovery there are key aspects, secondary elements and those that can safely be ignored.

The secret of success is the ability to distinguish one from the other and to set the right priorities: what must be done in the first instance, what must be done later and what is unnecessary in the absence of risks for the company.

Any recovery of a LLC (OOO)’s accounting records starts with an express audit. It allows us to ensure that your company really needs to restore its financial and tax accounting records. At this point, we can quote you a fixed price.

In planning a recovery project, we first analyse the situation that gave rise to the request to restore your records.

1. If you expect a tax audit…

Objective of reconstructing the accounts:

Prepare the reports and documents for imminent inspection

What we do in the first instance:

• We pay close attention to current tax risks
• We check, prepare and/or correct the most important documents for the tax audit
• We change the reports as needed and offer the best alternatives to redress the current situation
• We bring your accounts in order, in particular those accounts that are likely to attract the Federal Tax Service Inspectorate’s attention

What you get on top of accounts reconstruction:

• Detailed explanations by our experts on what to expect from the tax check, what you need to keep in mind, how to be on the safe side and how to be perfectly prepared for the challenge
• Practical recommendations on how to lower or eliminate current tax risks and minimize financial losses that could result from the tax audit (fines, penalties and additional tax charges)
• Advice on improving your company’s tax accounting and making your procedures more reliable (how to avoid tax audits and not to attract the tax office’s attention in the future)

Other ways we can help:

• Legal assistance by our tax lawyers during both field and desk audits (we take care of all or some of the interaction with the tax authorities without involving you or your employees in monitoring activities; this reduces your stress levels and ensures you continue to enjoy a healthy personal relationship with the tax inspectors; also, during the inspection, we check the legitimacy of all document requests by the tax office and can argue our case knowing the likely outcome of providing any particular documents to the tax authorities)
• In the event of additional tax charges, the necessity to reclaim VAT or excess tax payments, we protect your interests in or out of court.

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2. If you apply for a loan or bid for a tender…

Objective of reconstructing the accounts:

To demonstrate your company’s financial health: stability, assets (collateral), positive momentum.

What we do in the first instance:

• We attest to your ability to provide collateral and/or meet tender obligations and provide evidence of your solvency by using the appropriate methods to have your assets and liabilities recognised
• We create records in your financial statements that serve to confirm these data
• We clean up accounting items that are likely to attract the bank’s or tender committee’s attention

What you get (other than accounts reconstruction):

• Recommendations on how to bolster the stability and liquidity of your business.
• Detailed advice on what bank or tender committee audits are likely to involve, what questions you should be able to answer immediately and how to be on the safe side.
• Detailed descriptions of items in the financial statements and tax returns that may give rise to enquiries by the bank or tender committee

What else can we help you with?

• We offer comprehensive assistance in securing an unqualified auditor’s opinion after the accounting records have been cleaned up
• We can speak to the bank on your behalf, providing quick and professional comments on your financial and tax accounting and thereby enabling the bank to turn your application around quicker without requesting additional information.

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3. If you are aiming to attract investment or sell the business…

Objective of reconstructing the accounts:

• Demonstrating your company’s financial attractiveness: stability, assets, growth.
• Minimising tax risks / eliminating tax disputes and tax liabilities
• Transparent financial reporting for investors / buyers

What we do in the first instance:

• We check, prepare and correct the most important documents for financial accounting purposes
• We pay close attention to current tax risk and suggest methods of minimising them
• We bring the accounts in line with your requirements and propose ways of addressing any issues
• We focus on those items that are likely to attract investors’/buyers’ attention

What you get other than accounts reconstruction:

• Recommendations on making the business more attractive and lowering tax risks
• Detailed advice on likely investor/buyer checks, what questions to prepare for and how to be on the safe side
• Detailed information on items in financial reports and tax returns that are likely to raise questions

What else we can help you with?

• We offer comprehensive assistance in securing an unqualified auditor’s opinion after the accounting records have been cleaned up
• We can speak to the investor/buyer on your behalf as an independent third party. We respond quickly and professionally to any enquiries about your financial and tax accounting and thereby enable investors to make a quicker offer

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4. If you have decided to liquidate your company…

Objective of reconstructing the accounts:

Preparation of accounts and documents for the tax audit that takes place in the event of liquidation

What we do in the first instance:

• We draw up accurate accounts and tax returns
• We put together a high-quality accounting database
• We request missing source documents
• We take care of inventory reconciliation and monitor settlements with suppliers, buyers and the public purse

What you get other than accounts reconstruction:

• Practical recommendations on how to lower or eliminate current tax risks and minimize financial losses that could result from the tax audit (fines, penalties and additional tax charges)
• Minimising tax risks / eliminating tax disputes and tax liabilities
• During reconstruction, we advise you how to lower or eliminate current tax risks so as to meet tax office requirements and minimise additional tax charges
• We explain in detail what to pay attention to, what to expect, what questions are likely to arise and where you need to play it safe.
• We advise you on how to pay off liabilities to suppliers and customers in an appropriate manner.

What else can we help you with?

• We are happy to provide legal and accounting assistance during the tax audit.
• We can take care of all or some of the interaction with the tax authorities without involving you or your employees in monitoring activities. This reduces your stress levels and ensures you continue to enjoy a healthy personal relationship with the tax authorities.
• In the event of large additional tax charges, we are happy to protect your interests in and out of court (it crucial to have the tax service’s demands dismissed in order to exclude any administrative and criminal liability on the part of the managing director, to meet the tax office’s requirements and liquidate the company).

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5. If you are preparing for an external audit or a restatement of accounts…

Objective of reconstructing the accounts:

Preparing the accounts and documents for an external audit.

What we do in the first instance:

• We draw up accurate financial accounts and tax returns
• We put together a high-quality accounting database
• We request missing source documents
• We take care of inventory reconciliation and monitor settlements with suppliers, buyers and the public purse

What you get other than accounts reconstruction:

• During reconstruction, we advise you how to lower or eliminate current tax risks so as to meet tax office requirements and minimise additional tax charges
• We explain in detail what to pay attention to, what to expect, what questions are likely to arise and where you need to play it safe.
• We advise you on how to pay off liabilities to suppliers and customers in an appropriate manner.

What else can we help you with?

• We offer comprehensive assistance in securing an unqualified auditor’s opinion after the accounting records have been cleaned up.
• We can speak to the external auditors on your behalf, providing quick and professional comments on your financial and tax accounting; the ready availability of the required evidence speeds up the audit considerably.

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6. If you wish to clean up your accounts (following a tax or external audit, etc.)

Objective of reconstructing the accounts:

Приведение учета и документов в порядок, чтобы в дальнейшем без проблем проходить налоговые и аудиторские проверки.

What we do in the first instance:

• We draw up accurate financial accounts and tax returns
• We put together a high-quality accounting database
• We request missing source documents
• We take care of inventory reconciliation and monitor settlements with suppliers, buyers and the public purse

What do you get other than accounts reconstruction?

• During reconstruction, we advise you how to lower or eliminate tax risks to escape the tax office’s attention and lower the probability of a tax audit.
• Detailed explanations of what the accountants should focus on in the future, what tax burden is safe and how to build an effective accounting department, thereby avoiding chaos and future reconstructions of financial and tax accounts.

What else can we help you with?

• We offer comprehensive assistance in securing an unqualified auditor’s opinion after the accounting records have been cleaned up.
• We stand ready to continue our work on your company’s accounts to a high professional level and to accept full financial liability for it.

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And even if…

...you have no accounting database

It was lost, stolen, the accountant won’t return it to you or it was done badly

…you have no documents

Nothing to check the accuracy of submitted reports

Unclear what the reconstruction should be based upon

...the people have changed

There is nobody to provide information about documents, suppliers, customers, accounting subtleties

...there are pressing deadlines

The tax or external audit can begin at any moment

…don’t worry! When there is a will there is a way!

One head is good, two heads are better.
Typically, an entire team of specialists gets involved in a reconstruction project. They analyse the situation from various angles and, based on their practical experience, find the best solution.

The price of restoring your accounts depends on the magnitude of the disaster. But in any case, the price is lower than the additional tax charges and fines imposed for errors in documents and inappropriate accounting policies.

Chief accountants

• Chief
  accountants
• Tax
  experts
• Business
  consultants
• Personal
  assistants

What they do for you:

• They proceed from legal requirements to ensure the availability and form of the required source documents (help request, replace and reconstruct documents).
• They track inventory and settlements with suppliers, customers and the state
• They create a high-quality accounting database
• They make changes to the accounts where needed
• They prepare accurate financial statements and tax returns
• They submit restated tax returns

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What they do for you:

• even before you enter into the accounting service contract, they start advising you on accounting and taxation, study your business, suggest the optimal co-operation mechanisms;
• during our partnership, they answer any question on accounting and taxation, advise you on relevant accounting procedures and accounts reconstruction, on the creation of an efficient accounting department, tax accounting, tax planning and optimization;
• in the event of changes to your business (expansion, consolidation, new product segments) they adapt your financial and tax accounting accordingly;
• they set up partnerships with other divisions of the WiseAdvice group to address different, but no less important business matters.

What they do for you:

To err is human. However, an accountant’s error can cost both us and our clients dearly.

To exert greater quality control, we have created an internal audit service. Our auditors advise accountants on workflow and reporting issues and are passionate about checking the results of their work: the reports submitted to government bodies.

In addition, our accounting methodologists always help us to improve and modernise our 1C software packages in order to minimize the “human factor”.

For instance, our database contains accounting and tax data on each company that are so complete and well-structured that we can, at any moment, replace any accountant absent for whatever reason by another, without detriment to quality and speed.

What they do for you:

Since you are served by an entire team of specialists rather than a single accountant, we have simplified communication under the principle of a “single counter”.

You are assigned a personal assistant that will help you solve all organisational problems before and during our partnership:

• record all your requests in our database to ensure nobody forgets about them
• monitor speedy execution of your instructions
• set up your meetings with accounting and tax experts, etc.
• facilitate the document exchange between your company and ours

In other words, all communication with our company goes through a personal assistant that is always available. Call, write, contact us at any time: we will definitely listen and help!

• 1
  Stage

  Accounts reconstruction (the way it plays out)

  Reconstruction of accounts based on existing documents and the currently available accounting database

  Timeframe: depending on the number of documents (on average, an accountant processes 60 documents per day)

  Cost: 16,000 roubles / 60 documents

• 2
  Stage

  Correction (the way it should be)

  We show you the results; we decide together what to do next

  Timeframe: depends on the volume of adjustments

  Cost: 16,000 roubles / 1 accountant-day

• 3
  Stage

  Dénouement: “what the taxman is shown”

  Preparation and submission of tax returns

  Timeframe: on average, 1 working day for one set of statements

  Cost: 16,000 roubles / 1 set of statements