Accountant for foreign economic activity

The company’s entry into the international market significantly complicates accounting. This is explained by the fact that international trade requires the preparation of a specific package of documents and reporting, taking into account currency legislation and other regulatory acts. An accountant for foreign economic activity must be an experienced specialist, have deep knowledge, understand the specifics of document preparation for import and export, respectively. In addition, a qualified accountant can help the company optimize the taxation of foreign economic operations.

Operations in the field of foreign economic activity: main difficulties

The implementation of foreign economic operations involves proper documentation, in particular, the preparation and preservation of a foreign economic contract and primary documents (primarily an invoice to identify the operation and its participants).

For the purposes of financial monitoring, banks monitor compliance with the term of international settlements for export-import operations, which currently amounts to one hundred and twenty calendar days in accordance with NBU Resolution No. 113. Violation of this term entails the accrual of a penalty for each day of delay in the amount of 0.3% of the amount of unreceived funds. When exercising currency supervision, banks also have the right to require originals or copies of foreign economic contracts when transferring funds in favor of foreign suppliers.

Finally, the import and export of goods are associated with the preparation of customs declarations, payment of customs duties, as well as the organization of international transportation of goods (requires the preparation of additional transport documents).

Thus, the main difficulties in accounting for these operations are correct and timely documentation, compliance with currency control requirements, and customs procedures. The accountant “Prykhodko & Partners” helps businesses at each of the stages provided, primarily within the framework of providing accounting support services to the company.

Accounting for foreign economic activity operations

When accounting, the key factors are:

• first, payment terms. The method directly affects the accounting for exchange rate differences, while full prepayment minimizes the risks of their occurrence;
• second, determination of income. Income from the transaction is recognized on the date of transfer of goods, which is determined by the conditions fixed in the contract. Supporting documents may be a certificate of transfer of goods, an international CMR consignment note, or another specified document;
• third, currency accounting. All initial calculations are made in foreign currency, which is then converted at the current NBU rate. With postpayment, it is necessary to account for exchange rate differences on the balance sheet date.
• fourth, VAT taxation. According to the Tax Code, exports of goods are taxed at a zero VAT rate, imports – 20% of the value (7% – for some individual categories of goods);
• fifth, calculation, and payment of customs duties. Including in the cost of goods the amounts of import duty, excise duty, customs broker fees, etc.

Financial reporting for foreign economic activity

Enterprises are obliged to keep accounting records and submit statistical reports to state bodies. To organize accounting, you must use the Chart of Accounts of Accounting in accordance with current national legislation. It is also possible to enter additional subaccounts for detailed accounting.

The main document that should reflect the results of the company’s foreign economic activity is the annual financial report. The main features of its completion are as follows:

1. in the balance sheet, funds (assets) and sources of their financing (liabilities) are separately listed;
2. in the income statement, revenue and corresponding expenses are indicated;
3. in the appendix to the report, the necessary explanations are provided regarding the indicated indicators (information on currency transactions, exchange rate differences, etc.).

Attention also needs to be paid to the preservation of primary documents in the field of foreign economic activity, namely: foreign economic contract, invoice, customs declaration, transport documents (CMR, bill of lading, waybill), shipping documents (packing list, certificate of origin of goods ST-1, U-1 or EUR-1) and others. For more detailed information and the formation of a fixed cost of accounting services for foreign economic activity, please contact one of our specialists for professional advice.

Accounting audit for foreign economic activity

This procedure is crucial for optimizing the company’s activities in the field of foreign economic activity and is carried out by independent firms or auditors who have the appropriate licenses. It includes:

• confirmation of the reliability and completeness of the reflection of transactions in financial statements;
• assessment of the correctness of the reflection of currency transactions;
• verification of the accounting of customs payments;
• control over the correct application of VAT rates to import transactions;
• assessment of compliance of primary documents with legislative requirements;
• identifying weaknesses in the accounting system and providing recommendations.

Accountants for foreign economic activity “Prikhodko & Partners” recommend systematically requesting a high-quality accounting audit to ensure the stability of the enterprise, minimize risks, and increase trust from stakeholders.

Leave a request by filling out the form below, receive an initial consultation from an accountant for foreign economic activity “Prikhodko and Partners” and find out the price of accounting support for accounting of foreign economic activity operations today!