Formulation of accounting methodology

Specific aspects of formulation of accounting methodology

Organization and formulation of accounting is a complex of works aimed at organization of correct operation of accounting systems within the company in accordance with the regulatory requirements of the Ukrainian law. Depending on the management needs, formulation of accounting can be performed either system-wide or area-specific.


Why do you need formulation of methodology?

Every company needs correct setting of accounting if the company expands, undergoes reorganization, or creates a new area of activity. In addition, such work may be carried out within adjustment or recovery of the existing accounting in the company.

The task of each company is an integral development. Here it is necessary to describe methodology down to the smallest detail. Practical application of quality methodology is able to create good soil for the proper conduct of business by the company.

Our specialists are ready to undertake formulation of methodology. Implementation of this service is possible after a preliminary study of the specific aspects of the company activity. Staff members shall tentatively agree the draft methodology with representatives of the corporate management body. Efficient organization of accounting helps prevent future mistakes which negatively affect the financial performance of the company as a whole.

When we recommend to formulate accounting?

Practice shows that this service is feasible in the following situations:

  • company is created from scratch;
  • company is in transition to an independent keeping of accounting records;
  • internal changes in the existing system are being implemented, including local adjustment or full reorganization;
  • new employee is nominated as an accountant or the Chief Accountant;
  • reduction or expansion of accounting department;
  • planning new business activities with specific features.

What is included in the formulation?

Our service consists of the following works:

  • analysis of indicators of financial and economic activity;
  • analysis of fiscal policies implementation;
  • development of a methodology for accounting and tax records;
  • establishment of a new General accounts plan;
  • creating new forms of primary accounting documents, as well as papers on tax registers;
  • creating a new schedule of documents workflow in the company;
  • development of internal guidelines for accountants.

When formulating accounting methodology, our employees also solve the following tasks:

  • creating a new tax and accounting records policy in accordance with the specific activity of the multidisciplinary companies;
  • creating a new General accounts plan which is based on a standard plan, relying on the specific aspects of the company’s operation;
  • creating a schedule of documents workflow;
  • development of analytical accounting and handbooks by expense items;
  • setting tasks to be performed for ensuring job-order cost accounting;
  • formulation of accounting methodology for multidisciplinary company to achieve correct cost for the services, works and finished goods;
  • formulation of a methodology for general running income splitting for production and multidisciplinary company for the correct costing of goods, works and services;
  • formulation of new methodology for factory overhead cost splitting for the costing purpose;
  • preparation of indirect cost allocation methodology by the activities for multidisciplinary companies with the purpose of correct costing of services, works and products;
  • check the work efficiency of the Accounting Department for correct document automation;
  • review of correct objective setting in document automation in a new software to avoid errors when verifying the execution of business transactions;
  • setting the correct list of tasks to automate model of keeping accounting records in accordance with the specific nature of work of a multidisciplinary company;
  • objectives setting in document automation or accounting areas automation in accordance with the customer requirements;
  • comprehensive implementation support of the new methodology, and compliance with the existing accounting methodology.

Final results

After completion of all works the client receives the following results:

  • a clear plan that includes a complete list of necessary documents for registration of all tax and accounting records areas according to the regulatory requirements of the Ukrainian law;
  • complete accounting policy of the company in terms of tax and accounting records;
  • ready-made recommendations on the establishment of a new structure of accounting within the company;
  • within the framework of the methodology formulation there might be a need to produce local regulatory and normative documents. This includes a large number of documents, such as Regulations on accounting policy of the company, record keeping procedure, labor and material contracts (regulating the responsibility), as well as the contractual documentation (standard and non-standard model contracts). We can include other documents in this list, depending on the client’s requirements.

As practice shows, formulation of new accounting is required in the process of opening a new company, or expanding the scope of company’s activity. An often situation is when, for example, the company has neglected accounting, what results in the need for its full reconstruction.

Advantages of working with us

Compared with a number of other specialized companies, after contacting us in the Financial Chain Corporation, the client is guaranteed the following benefits:

  • development of accounting policy, fully satisfying the client’s requirements;
  • well-established document workflow system;
  • modernization of tax systems in accordance with the analysis of economic activity, required to reduce the size of tax payments within the framework of national law;
  • reduction of risks of financial loss caused by the potential claims from controlling bodies;
  • modern solutions towards automation of tax, management and accounting records.

Qualified specialists will independently develop a 100% working General accounts plan, a new corporate accounting policy to achieve accounting and tax objectives. It is possible to order service on one-time basis or within the framework of an integrated approach to the accounting.

Our own practice has repeatedly shown that it is better to organize accounting once than regularly use the services of amateurs and face financial losses or problems with the law. Complete avoidance of new errors can have a positive impact on the performance of the company as a whole. Please note that the cost of provision of services is always determined individually, based on the results of the company’s verification. Price directly depends on the expected level of complexity of accounting in general. However, there is no need to worry because we take on the challenges at quality level and at one of the most favorable rates in the region.

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