Most foreign companies starting operations in Ukraine are surprised by the volume and complexity of accounting duties that local legal entities have. In general, the statutory requirements for reports and other filings are quite demanding and time-consuming. What´s more, in many cases it´s not possible to automate these processes to the same extent as in the EU or the U.S. for example.
In addition, the statutory reports that companies are required to file are not very helpful for decision makers abroad. They are always submitted in the local language, and due to their structure it´s usually not an option to just translate them either in order to get practical information for business decision making in real time. Additionally, local reports are made in the local currency (in Ukraine´s case, Ukrainian hryvnia) which is not always ideal for managerial purposes – sometimes the reporting currency needs to be switched.
All managerial decisions should be based on accurate managerial reports which are, in the optimal situation, available in real time. Usually, these kinds of reports can include:
- Cash-flow reports and forecasts;
- Accounts receivable and payable reports;
- Balance sheets;
- Profit / Loss reports;
- Reports using IFRS or other national standards;
- Ad-hoc reports.
We have long experience in helping our clients receive the managerial reporting they need from their subsidiaries abroad. In some cases, it makes sense to keep your day-to-day accounting and document flow in-house using your own accountants, but to outsource just the managerial reporting part. This way you can keep the bulk of accounting work under your own roof but use outside specialists for management reporting, which is usually a cost-saving option. Many times, this option enables you to use cost-efficient non-English speaking in-house accountants for basic accounting tasks, while only paying English-speaking accounting specialists for the more complicated reporting part.
If you are having problems receiving proper managerial reporting from your subsidiary or daughter company in Ukraine, feel free to get in touch with us. We would be happy to discuss with you and see how we could help you get better data for your corporate decision making!
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