December 2, 2021

Beyond Going Long

Complete UK News World

Amending the Accounting Law reduces bureaucracy for entrepreneurs, and also pays attention to the environment

Amending the Accounting Law reduces bureaucracy for entrepreneurs, and also pays attention to the environment

The Ministry of Finance responds to current trends in digitization by amending the Accounting Law. It should be useful to entrepreneurs from January of the new year, as it uses modern technology, eliminates useless document backup, reduces bureaucracy, and even saves paper. It includes a number of changes that should simplify business accounting, and also introduces one new commitment.

Photo: shutterstock

Easier archiving of accounting documents

Entrepreneurs will be from the new year instead of paper documents It is sufficient to keep accounting documents in electronic form.

An electronic document archive installed using a program in the . format Computers will be able to overwrite their current archive. Until now, they had to backup their documents not only in electronic form but also in paper form. In addition to The transfer can only be made by authorized persons, such as a lawyer, notary or post office, and a fee has been charged for the service.

After the new law allows Scanning accounting documents without using guaranteed transferWhich relieves the administrative burden on entrepreneurs and simplifies the electronic archiving of accounting documents. This means that The obligation to archive the documentary accounting record is canceled if it is converted into an electronic record.

In addition, entrepreneurs will be able to replace the handwritten signature with an electronic one, which will make it possible to establish the identity of the person.


As of January 2022, there will be four major changes

1) electronic archiving of documents It will become part of the business’s accounting system.

See also  Finportal brokers group published interim economic results - Trade and Business - Trade News

2) The transition will be to electronic accounting documents Possible even without a guaranteed paid transfer by scanning paper documents.

3) Record financial statements It will contain the financial statements of all legal entities.

4) to commit a serious violation of the accounting law There will be a fine of one thousand to three million euros.

Other forms of legal entities will be added

There is currently the public part of the financial data record of the Ministry of Finance Documents are provided for commercial companies, cooperatives and government institutions only or public administration entities.

The amendment to the Accounting Act expands the general part of the register to include other legal forms of legal entities. The registry will be expanded to include land associations and not-for-profit NGOs, Such as civil associations, associations of owners of apartments and non-residential premises or associations of interests of legal entities. Thus, the financial statements of all legal entities will be publicly available in the financial statements record.

The non-public portion of the record will contain only accounting documents Natural persons working in the business and organizational units of foreign persons.

The positive news for some NGOs and non-profit organizations is that too The law clearly defines what their annual report should look like and what it should contain. This innovation applies only to associations and organizations, which have so far been required to publish annual reports, but have not had clear rules.

Fines from 1,000 to 3 million euros

The amendment of the Accounting Law sets the minimum and maximum limits for the amount of fines. Entrepreneurs threaten a minimum fine of 1,000 euros if they violate the accounting law For example, by not keeping accounts, not preparing financial statements or by concealing facts that are the subject of accounting under this Act and not being held accountable for them.

NS A serious violation of the accounting law can result in a fine of up to 3 million euros. It is liable for such a fine if no financial statements are presented in the financial statements record, if the entity reports zero in its assets, or Shows an intentionally low amount of assets.

Entrepreneurs will also have a new commitment

It is also necessary to emphasize that the amendment of the law also brings a new obligation to companies and entrepreneurs. Before they are dissolved without a legal successor or before they terminate their business, they are required to inform the Tax Office of how they have clearly ensured that their accounting documents are retained by another accounting entity or natural person, including identification data.