Accounting Services for IT Companies in Belarus

In today’s dynamic information technology industry in Belarus, effective financial management and proper accounting are an integral part of a successful business. Accounting services for IT companies play a crucial role in ensuring financial transparency, compliance with tax laws, and optimizing financial flows. Let’s take a closer look at the advantages of accounting services for IT companies in Belarus, how to choose an accounting services company, and what accounting services IT companies can get.

What does effective financial management in IT companies affect?

Effective financial management plays a vital role in the successful operation of any company, including the IT sector in Belarus. Several factors determine the importance of this aspect:

1. Growth and competition
The information technology sector in Belarus is one of the most dynamically developing industries. Competition in this sector is very high, so effective financial management will help the company survive in the market and ensure stable growth.
2. Taxation
Belarusian tax legislation for IT companies can be complex and changeable. In particular, several tax rates depend on whether the IT company is a resident of the Belarusian Hi-Tech Park. Proper financial management will help minimize tax risks, comply with all legal requirements, and optimize tax payments.
3. Investment and financial sustainability
Effective financial management allows IT companies to attract investment, develop their projects and ensure financial stability in an unstable economic situation.
4. Transparency and accountability
Accurate financial reporting and transparency in financial activities contribute to the trust of the company’s investors, clients and partners.
Thus, effective financial management in IT companies in Belarus is an important tool for achieving success, growth, and financial sustainability in a dynamic and competitive information technology environment. Our accounting services on the Belarusian market provide all this.

What do IT companies get from outsourcing accounting services?

The role of accounting services in ensuring business success in the IT sector in Belarus should not be underestimated, as accounting plays a vital role in a company’s financial success. Outsourcing accounting cases to an accounting company helps you focus on completing business tasks and avoid distracting employees from operational tasks. Here are some of the functions and aspects a company that provides accounting services to an IT business can take on.

1. Maintaining accounting records
Accountants manage all company financial transactions, from accounting for income and expenses to preparing financial reports. Accurate and timely accounting and timely preparation of primary accounting documents and accounting statements allow the company to monitor its financial situation, make informed decisions, and plan further actions.
2. Tax calculation and tax reporting
The services of an accounting company allow an IT company to comply with tax laws, calculate taxes correctly, and submit tax reports according to the requirements of the tax service. This will enable you to avoid fines and sanctions from the tax authorities.
3. Financial planning
Using the services of an accounting company, you will be able to develop budgets, financial strategies and development plans. Accountants and financiers analyze economic indicators, help optimize expenses and increase the company’s revenue.
4. Financial Transparency
Accounting services provide the company with financial transparency to investors, partners, banks, and clients. You can request and receive accounting data with explanations at any time, helping build trust in the company and attract new investors.
Thus, accounting services are an integral part of successful financial management in the IT sector in Belarus, ensuring economic stability, transparency and effective financial management of the company.

Specifics of accounting in the IT sector

The success of developing an IT business largely depends on the level of knowledge and competencies of an accountant. 

These are the main difficulties encountered by accountants who are not familiar with the IT field:

• In determining income and expenses related to business activities.
• In payroll calculation for developers. 
• In separating a product and a tangible storage medium for accounting purposes.
• In determining the cost of IT products.
• In determining the costs that are included in the cost of the IT product.
• Accounting for improvements and updates to the IT product.
• In accounting for settlements under license agreements.

Specialists who provide accounting services to IT companies in Belarus do not have such difficulties.

To complete their tasks, accountants need to have a good knowledge of accounting in the IT sector and be aware of the legislative acts regulating the activities of residents of the Hi-Tech Park. In addition, the accountant must speak English at least at the B1 level. Employees of a company that provides accounting services for IT companies have such competencies.

Tax features for IT companies in Belarus

Tax accounting and reporting are carried out in IT companies and companies that are residents of the Hi-Tech Park, considering the special tax regime and benefits provided by law. 

The Hi-Tech Park applies a special tax regime for resident IT companies, which is more favorable than the generally accepted ones in the country:

• No VAT is charged.
• No income tax is paid.
• There is no offshore fee.
• No customs duties are levied on the import of technological equipment.
• The income of foreign organizations, including the sale of shares or interests in companies that are residents of the Hi-Tech Park, is not taxed.
• No income tax or VAT exists on operations with cryptocurrencies and other tokens.
• Objects located on the Hi-Tech Park territory and not rented out by residents are exempt from real estate tax.
• For up to three years, no land tax is levied on plots used for the construction of real estate by residents in the Hi-Tech Park.
• When paying dividends by residents of the Park, the tax on income of foreign organizations without representation in Belarus is 5%.

Such benefits do not exempt IT companies that are residents Паркаof the Hi-Tech Park from submitting tax returns to the tax authorities. Therefore, it is very important to hire an experienced accountant because there are quite large fines for non-submission of tax returns.

For IT companies that are not residents of the Hi-Tech Park, a general tax regime has been adopted, including calculating taxes, filing tax returns, and tax reporting.

Cooperation with a company that provides accounting services for Belarus’s IT companies helps reduce risks during tax audits and avoid fines.

What functions can be transferred to an accounting company?

In the contract to provide accounting services, you need to list precisely which accounting services the company will provide. IT companies do not always have specialists in Belarusian accounting to understand the essence of accounting services. We use examples to explain what accounting services can be provided to IT companies: 

Development of accounting policies. 
This is an internal company document that sets out the specifics of accounting and reporting in the company. It was compiled after consultation with the IT company representative.

Verification and reconciliation of calculations. 
Accounting company specialists can not only draw up settlement documents but also compare settlements with other companies, check the accuracy of calculations, and inform the IT company about this.

Preparation and sending of payment documents. 
The accounting company can only prepare settlement documents and pass them on to the IT company or prepare and pass them on to the bank. Depending on this, you need to solve the issue of access to the remote banking system that the bank provides to the IT company.

Payroll calculations.
Based on the data transmitted by the IT company, wages are calculated, as well as payments that need to be transferred to the budget simultaneously with wages: income tax and contributions to the social protection fund.

Calculation of taxes and preparation of tax reports.
An accounting services company can calculate taxes and send tax returns to the tax authority.

Financial statements
You can prepare financial statements for a given date according to certain parameters at the IT company’s request.

HR records management
This may include processing employment-related documents, vacations, business trips, transfers, dismissals, and mandatory reporting to the Social Protection Fund.

How to choose the right accounting services company for an IT company

Choosing a company that provides accounting services for an IT company in Belarus requires a careful and thorough approach. Here are some recommendations that can help you choose the right company:

1. Identify your needs
Before you start your search, determine what specific accounting services you need. These may include accounting, tax support, auditing, legal advice, and others.

2. Choose a company with experience working with IT companies
The IT sector has its characteristics, so it is essential to choose a company that has experience working with similar clients and understands the specifics of this industry.

3. Check your reputation and recommendations
Study customer reviews about the company, study the company’s website, and ask your colleagues and partners if they can recommend you a reliable partner.

4. Specify the cost of services
Discuss the terms and cost of the services provided and the payment frequency with the company, and ensure they meet your budget and expectations.

5. Make an appointment
Once you have selected several potential candidates, schedule meetings with representatives of these companies to discuss their needs in more detail and get all the necessary information. Often, cooperation with an accounting company involves communication with a personal manager, so you need it to be a person with whom you are comfortable working.

6. Sign a contract
In addition to the cost of services and the payment procedure, the contract must clearly define the list of services that are outsourced. 

These tips will help you choose the right company to provide accounting services to your IT company in Belarus.