Accounting support for IT companies

Accounting support is essential for IT companies as it involves the complete organization, maintenance, control, and analysis of financial and business activities. This service covers all aspects of an IT company’s financial life and helps avoid errors and serious violations. Regardless of the chosen taxation group or the status of Diia.City Resident, an IT company can receive professional services from our accountant with relevant practical experience. In this article, we will take a closer look at what services are included and what benefits they provide.

Specifics of accounting for IT companies

IT accounting has its own specifics. This is due to the challenges faced by every company in this sector, such as foreign currency accounting, reflection of exchange rate differences in financial documents, royalty calculations, and more. Moreover, IT businesses often enjoy certain tax benefits and may have flexible work schedules for employees (especially developers), which also requires special skills in HR documentation management.

Without proper accounting, an IT company cannot correctly determine its tax base, revenue, or payroll fund. This can create additional tax burdens and lead to potential labor disputes.

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How can an accountant help with IT company taxation?

An accountant plays a key role not only in ensuring financial stability but also in filling out and timely submitting tax documents (returns). In this context, the specialist can:

• firstly, change the tax system or group for the IT company (for example, from simplified to general);
• secondly, register the IT company as a VAT payer and put it on the appropriate tax register;
• thirdly, submit annual/quarterly tax returns and reports;
• fourthly, monitor changes in tax legislation and inform about possible tax benefits for the IT company;
• fifthly, prepare documentation and respond to tax authority inquiries during scheduled and unscheduled inspections;
• and finally, register tax invoices and more.

Accounting support for a Diia.City Resident IT company: key points

If a company is a Diia.City Resident, it has special taxation conditions. Accordingly, it will be required to pay:

• Corporate Profit Tax of 9% on withdrawn capital (determined at the company’s discretion);
• Personal Income Tax (PIT) of 5% on salaries (for gig-specialists);
• Military levy of 1.5% on income;
• Unified Social Contribution (USC) of 22% of the minimum wage.

As part of accounting support, a Diia.City Resident can benefit from tax burden optimization, assistance with complex tax deduction rules, and proper documentation of payments for gig-specialists. A significant advantage will also be the accountant’s assistance in preparing primary documents (such as invoices). For more detailed information, we recommend contacting one of our professional accountants for a full consultation regarding your case.

What services does the accountant of Prikhodko & Partners provide as part of accounting support for IT companies?

The accountants of our firm provide comprehensive business support, including for IT companies. Considering the specifics of this industry, their services include:

• preparation of financial statements;
• payroll calculation and HR record-keeping;
• tax accounting and optimization;
• conducting foreign exchange transactions (payment settlements);
• development of accounting policies and job descriptions (for the accounting department).

At the initial stage of cooperation, our accountant will hold an introductory consultation, provide the cost of services for your business, and prepare a service agreement for signing. Thus, you will receive not only accounting services for your IT company but also a reliable partner for financial optimization.

In conclusion, accounting support is critically important for IT companies. It ensures compliance with accounting and tax legislation, takes into account special rules for this type of business (regarding settlements, tax benefits for Diia.City Residents, preparation of primary documents, etc.). The accountants of our law firm “Prikhodko & Partners” will provide you with detailed consultation, sign an agreement for official cooperation, and take over the financial side of your business (including HR documentation for employees).

Have questions? Get a consultation from our accountant providing services to IT companies by filling out the form below.