An accountant can be an employee of my company, in which case they are in an employment relationship with me as their employer.
It is also possible to enter into a civil contract with an individual - an accountant - to manage my accounting.
In the most common case, I find an accounting firm - a specialised accounting enterprise, registered as a trader in the Bulgarian Commercial Register or as a legal entity under the legislation of another EU member state, with accounting as its stated business activity.
What qualifications must my accountant hold?
An accountant may be:
- a holder of higher accounting and economic education with experience in accounting, external or internal audit, financial inspection, tax audits or as a lecturer in accounting and control:
- a) at master's degree level - 2 years;
- b) at bachelor's degree level - 3 years;
- c) at professional bachelor's degree level - 4 years.
- a holder of another higher economic education with 5 years of experience in the field;
- a holder of secondary economic education with 8 years of experience as an accountant.
An accountant may only be a person who has not been convicted of a general economic crime.
What liability does my accountant bear?
IMPORTANT! The obligations listed below are in fact obligations of my company as a whole and of me as its manager. For example, if an annual financial statement is not prepared, the fine will be imposed on my company, not on the accounting firm.
The accountant's liability towards me is determined by the contract we have entered into. If it is an employment contract, the accountant bears disciplinary liability. If it is a civil or commercial contract, their liability is for non-performance or improper performance, and they may also owe penalties.
The accountant bears personal criminal liability when they avoid payment or establishment of tax obligations by destroying, concealing or failing to retain accounting documents, or when they prepare an accounting document with false content. A sentence of imprisonment from 1 to 6 years and a fine of up to BGN 2,000 may be imposed.
What are the rights of my accountant?
In order for my accountant to do their job well, I must provide them with access to the documentation and accounting information. The documentation must be maintained accurately and contain truthful information. There is no way to expect the accountant to carry out their tasks successfully if I do not provide access to accurate information about my company's business activities.
What tasks can my accountant perform?
IMPORTANT! The accountant's obligations are determined by the contract I have entered into with them. As a manager, I determine which legal obligations I delegate to the accountant and which I retain. The tasks listed below are illustrative and most commonly encountered.
Managing my company's accounting activities
The accountant's primary obligation is to organise the accounting activity and prepare financial statements - which is why accountants are also known as "preparers of financial statements". The accountant determines how accounting information will be collected and stored, and should explain the required procedure to me and my employees.
Collection and verification of accounting information
The accountant has the right to request any accounting information and documents from me and my employees. Accounting documents are those that contain information about business transactions. Examples include invoices, cash receipts and transport tickets submitted by employees for reimbursement.
Accounting documents may be primary (carrying direct transaction information) or secondary (compiled lists based on primary documents, with information differentiated by type of operation).
Review and maintenance of accounting registers
My company must maintain accounting registers containing the information collected from accounting documents over a given period. The accountant must have access to these registers, monitor their correctness, verify consistency between them and inform me of any inaccuracies.
Monthly and annual closing of registers
The accountant also performs interim and annual closing of accounting registers, typically for each individual month and for the full year.
Inventory
The accountant carries out periodic inventory checks of the company's liabilities and assets, and monitors the company's equity, income and expenses.
Storage of accounting information
The accountant must retain accounting registers and financial statements for a period of 10 years. If I change accountants, the outgoing accountant must hand over all documentation to a person designated by me - typically the new accountant.