Accountant
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Accounting support for the management company
Accounting support for the management company: key points
A management company (hereinafter referred to as a management company) should be understood as a business entity that manages residential buildings, provides utility services and ensures maintenance of the housing stock. A management company is inextricably linked to condominiums, which are typical recipients of their services in Ukraine.
Accounting of these companies is complicated by the provision of services in the housing and communal sector to co-owners of apartment buildings, which involves large amounts of expenses for receipts and their mandatory inclusion in financial reporting. Such optimization of calculations may be too difficult for an accountant who does not have the appropriate experience, and lead to inevitable violations of accounting. For convenience, the accounting system should use the distribution of the cost of their resources, which is provided for in contracts for the provision of services to consumers.
Accounting of the UK is also complicated by the need to report not only to regulatory authorities, but also to consumers of utility services regarding the calculation of the estimate for the current year of activity (in accordance with Article 8 of the Law of Ukraine “On Housing and Communal Services”).
The company's tax reporting also requires vigilance and careful compliance with all statutory regulations, in particular with regard to the deadlines for its submission and completion. Since the activities of these companies are of increased interest to the regulatory authorities due to the specificity and importance of their activities for residents of apartment buildings, violation of accounting rules on their part entails corresponding legal consequences.
Typical problems when maintaining accounting records for a management company
From the experience of specialists at "Prikhodko & Partners" Law Firm, a number of problematic issues may arise when maintaining accounting records for a management company without proper qualifications and professional skills. Their general list is as follows:
- errors in accrual and accounting of payments, which are expressed in a discrepancy between actual payments and accrued amounts, incorrect write-off of consumer debt (recommendation: specialized accounting programs and regular reconciliation of balances);
- incorrect preparation of financial reporting documentation due to loss of contracts (careless storage) and errors in cash documents (recommendation: maintaining electronic document flow, clear documentation storage regulations);
- lack of detailed expense reports, which can lead to lack of transparency of operational activities before regulatory authorities (recommendation: maintaining and verifying reports monthly).
Fine for improper accounting of a management company
Management companies that improperly maintain financial documentation, submit reports with errors or contain false information may be held legally liable. The head of such a company bears (depending on the nature of the violation):
- administrative liability - a fine of UAH 136,340 under parts 1-2 of Article 164-2 of the Code of Administrative Offenses;
- criminal liability - a fine of UAH 85,000-425,000, imprisonment for a term of up to three years under parts 1-3 of Article 212 of the Criminal Code of Ukraine.
Therefore, compliance with legal requirements for company accounting is critically important for conducting legal activities. Timely documentation and correct reporting will help avoid fines, legal risks and ensure stable work. You can learn more about the features of accounting for management companies by consulting our leading accountant.
Accounting support service for management companies
Since accounting for management companies has its own characteristics and complexities, cooperation with professional accountants will help to keep records correctly, submit all necessary reports in a timely manner and avoid unwanted fines and other forms of legal liability, optimize the financial and tax burden.
The main elements of accounting support for a management company by a specialist of the Law Firm “Prikhodko and Partners” are:
- accounting - accounting of residents' income, maintenance costs, settlements with contractors and suppliers;
formation of financial and tax reporting - company balance sheet, financial results report, declarations on payment of income tax, social security, etc.; - formation of financial and tax reporting - calculation of salaries to employees, maintenance of personnel documentation, management of cash transactions and bank payments.
Conclusions. Accounting for a management company requires a systematic approach due to large volumes of payments received from residents and significant maintenance costs. Such a company must not only report to regulatory authorities, but also ensure transparency of settlements to consumers. The law firm “Prikhodko and Partners” provides comprehensive accounting support, including accounting, financial and tax reporting, personnel accounting and settlement control.
Accounting support will help you keep records correctly, submit reports on time, and demonstrate the transparency of financial activities to consumers and government authorities. To find out the cost of support, fill out the form below.
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We provide accounting outsourcing services for clients throughout Ukraine, and we can also serve companies abroad. Thanks to the use of modern online technologies, we have the opportunity to effectively cooperate with clients remotely, regardless of their location.
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We have a staff of 50+ experienced lawyers with deep knowledge in specialized areas of law. Therefore, we serve a wide range of clients – from startups to large corporations, in various fields of activity.
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