How to Choose the Right Accountant for Your Business in Bulgaria

If you are a small business owner in Bulgaria or are thinking about registering a new company in this country, one of the most important aspects to consider is choosing a good accountant. Often, small businesses only start looking for an accounting expert when they face significant financial problems or when tax needs become too complex to handle alone. But how do you choose the right accountant for your business? In this guide, we will explore the main factors to consider and the essential skills a good accountant should possess to support your company’s success in Bulgaria.

How to Choose an Accountant in Bulgaria: Key Competencies

To choose the most suitable Bulgarian accountant for your business, you can consider several key skills:

• Educational Background: Good education is essential. A specialized degree in accounting, economics, business, or mathematics is an excellent starting point. Bulgarian law stipulates that financial statements can only be prepared by a person who meets certain legal requirements, including minimum education levels and years of experience.

According to Article 35 of the Bulgarian Accounting Act, at least a degree in economics and some experience in accounting, auditing, or financial inspection is required. Requirements vary depending on the level of education:

-Master’s degree (MA): 2 years of professional experience.

-Bachelor’s degree (BA): 3 years of professional experience.

-Specialist” diploma: 4 years of professional experience.

-Even secondary education in an economic field is accepted but must be combined with longer work experience (8 years).

• Experience in Tax and Social Security Law: A solid knowledge of tax law is crucial, especially if your business has international dealings or benefits from tax incentives for foreign entrepreneurs. In Bulgaria, a good accountant should be well-versed in local laws to ensure compliance with regulations and optimize tax-saving opportunities.
• Foreign Language Skills: Proficiency in at least one foreign language, preferably English, is an added value. This is particularly important if your company has international partners or shareholders. An accountant who can communicate effectively in English can facilitate managing international relationships and simplify the preparation of documentation intended for foreign partners.
• IT Skills and Accounting Software: The ideal accountant should be able to use advanced accounting software and digital tools to streamline accounting management and provide clear and accessible financial reports. Efficient use of tools like Excel, cloud accounting software, and specific management platforms can make a difference in the efficiency of accounting management.

Read also: Key Competencies for Business Success

Services Offered by an Accountant or Accounting Firm

A good accountant or accounting firm offers a range of services that go beyond simple bookkeeping. Here are some of the main services you might consider:

• Preparation of Tax Returns: This is one of the most common activities for which companies turn to an accountant. Accurate and timely preparation of returns is crucial to avoid penalties.
• Preparation of Financial Statements: An accurate and complete financial statement is essential for obtaining financing, for business planning, and to ensure the transparency of business operations.
• Payroll Management and Employment-Related Tasks: Payroll management can be complicated, especially when it comes to complying with social security and tax regulations. An experienced accountant can ensure everything is in order.
• Tax and Legal Representation: Another important aspect is representation before local institutions. This is particularly useful in the case of tax audits or inspections by the authorities.

Read also: Cash Flow vs Profit: What’s the Difference?

How to Choose an Accountant in Bulgaria: Other Aspects to Consider

Once the basic skills have been identified, it is also important to evaluate other aspects to ensure you choose the right accountant for your company.

• Industry Experience: An accountant who has experience in your specific sector will be able to better understand your needs and offer more targeted advice. For example, if your company deals with international trade, it may be useful to look for an accountant who already has experience with customs regulations and international transactions.
• Reliability and Reputation: The reputation of the accountant or accounting firm is a key indicator of their reliability. Look for online reviews, ask for references from current or past clients, and check that the firm has good experience in dealing with the typical accounting challenges of small and medium enterprises.
• Rates and Costs: The prices for accounting services can vary significantly. Some firms offer fixed-price packages, while others prefer to bill based on the number of hours worked or the complexity of the services provided. Make sure to clearly discuss fees before making a decision to avoid future surprises. Remember that a good accountant can save you more than they cost through optimized tax management and proper planning.

If you are looking for an experienced accountant in Bulgaria, you might consider Accountancy Bulgaria, an accounting firm offering a wide range of services to support your company’s growth. Accountancy Bulgaria not only handles accounting and financial management but can also assist you in your company registration in Bulgaria and help you benefit from all the incentives made available by the government for foreign entrepreneurs.

Thanks to their extensive experience and deep knowledge of the Bulgarian tax system, Accountancy Bulgaria can be a strategic partner to ensure the success and sustainable growth of your business.

Conclusions

Choosing the right accounting service in Bulgaria for your business is a crucial decision that can significantly influence the financial health and growth of your company. The choice depends on the size of the company, the flow of documents, and specific needs in terms of tax consultancy and financial planning. Whether you decide to hire an internal accountant or rely on an accounting firm, make sure to choose a professional like Accountancy Bulgaria, who has good training, experience in your industry, and solid knowledge of local tax regulations.