Suzanne
18-10-06, 04:59 PM
Accounting requirements for small Bulgarian businesses will be relaxed next year, the Council of Ministesaid on October 5.
Under the Council’s amendments to the Accountancy Act, small businesses would have to prepare a short version of their annual financial report while sole traders would have to present a report on their incomes and expenses. The moves are intended to allow small businesses to keep their books more easily.
The amendments are part of the Government’s efforts to meet Bulgaria’s commitments under the Company Law chapter of its EU acquis. The process of harmonisation will be completed with upcoming changes in the National Standards for Financial Reports by Small and Medium-Sized Enterprises, due before this year’s end, the government press office said. They will be consistent with the Government’s policy for reducing the administrative and regulatory requirements for small businesses with a view to simplifying operations and reducing costs. The proposed changes also scrap the requirements for small companies to prepare annual reports, submit consolidated financial reports and employ an independent financial audit of their annual reports.
Parliament has yet to approve the proposed amendments.
According to the 2006 Small and Medium Enterprises Act, medium-sized businesses have an average of less than 250 employees, an annual turnover of no more than 97 500 000 leva or assets of no more than 84 000 000 leva. Small enterprises are those that have no more than 50 employees and an annual turnover of no more than 19 500 000 leva or assets of no more than 19 500 000 leva.
The only available data on the number of small and medium enterprises in Bulgaria dates from 2004, according to Ministry of Economy and Energy website. According to site, the number of medium-sized businesses in 2004 was 216 000 or 99.2 per cent of all Bulgarian companies.
Relaxed terms, however, do not automatically mean small and medium-sized businesses abandon good bookeeping, according to a Vitosha Research survey conducted by the Ministry of Economy and Energy last month.
The survey, carried out among 100 Bulgarian small and medium-sized firms, showed that small businesses were not well informed about access to EU funds.
Only two per cent of small and medium-sized businesses in Bulgaria have received financing from EU pre-accession funds. Only 1.4 per cent of the respondents have received financing under the PHARE programme. The ISPA programme provided funds to only 0.7 per cent. Less than two per cent have applied for funds under the SAPARD programme. In total, only 11 per cent of Bulgarian small and medium-sized firms have applied for EU funding.
The aim of the survey was to see how small and medium businesses in Bulgaria are prepared to absorb EU structural funds. Bulgaria is expecting 12 billion euro within seven years after it becomes a full EU member. The rate of absorption is relatively low now. By August 31 2005, 62 per cent of PHARE funds were absorbed; 53 per cent are due under ISPA. SAPARD funds cover 45 per cent of the projects. EU funds are allotted mainly to big companies, as they often co-finance the projects, paying 30 to 50 per cent of the costs.
In Bulgaria, only 10 to 23 per cent of businesses fully meet European requirements. As for the rest, they would apply for EU financing to ensure money for technology upgrading, innovations and other programs aimed at meeting EU standards.
About 70 per cent of those who have failed so far to meet those standards are not pessimistic, though. They hope to be able to withstand competition, the survey said.
www.sofiaecho.com
Under the Council’s amendments to the Accountancy Act, small businesses would have to prepare a short version of their annual financial report while sole traders would have to present a report on their incomes and expenses. The moves are intended to allow small businesses to keep their books more easily.
The amendments are part of the Government’s efforts to meet Bulgaria’s commitments under the Company Law chapter of its EU acquis. The process of harmonisation will be completed with upcoming changes in the National Standards for Financial Reports by Small and Medium-Sized Enterprises, due before this year’s end, the government press office said. They will be consistent with the Government’s policy for reducing the administrative and regulatory requirements for small businesses with a view to simplifying operations and reducing costs. The proposed changes also scrap the requirements for small companies to prepare annual reports, submit consolidated financial reports and employ an independent financial audit of their annual reports.
Parliament has yet to approve the proposed amendments.
According to the 2006 Small and Medium Enterprises Act, medium-sized businesses have an average of less than 250 employees, an annual turnover of no more than 97 500 000 leva or assets of no more than 84 000 000 leva. Small enterprises are those that have no more than 50 employees and an annual turnover of no more than 19 500 000 leva or assets of no more than 19 500 000 leva.
The only available data on the number of small and medium enterprises in Bulgaria dates from 2004, according to Ministry of Economy and Energy website. According to site, the number of medium-sized businesses in 2004 was 216 000 or 99.2 per cent of all Bulgarian companies.
Relaxed terms, however, do not automatically mean small and medium-sized businesses abandon good bookeeping, according to a Vitosha Research survey conducted by the Ministry of Economy and Energy last month.
The survey, carried out among 100 Bulgarian small and medium-sized firms, showed that small businesses were not well informed about access to EU funds.
Only two per cent of small and medium-sized businesses in Bulgaria have received financing from EU pre-accession funds. Only 1.4 per cent of the respondents have received financing under the PHARE programme. The ISPA programme provided funds to only 0.7 per cent. Less than two per cent have applied for funds under the SAPARD programme. In total, only 11 per cent of Bulgarian small and medium-sized firms have applied for EU funding.
The aim of the survey was to see how small and medium businesses in Bulgaria are prepared to absorb EU structural funds. Bulgaria is expecting 12 billion euro within seven years after it becomes a full EU member. The rate of absorption is relatively low now. By August 31 2005, 62 per cent of PHARE funds were absorbed; 53 per cent are due under ISPA. SAPARD funds cover 45 per cent of the projects. EU funds are allotted mainly to big companies, as they often co-finance the projects, paying 30 to 50 per cent of the costs.
In Bulgaria, only 10 to 23 per cent of businesses fully meet European requirements. As for the rest, they would apply for EU financing to ensure money for technology upgrading, innovations and other programs aimed at meeting EU standards.
About 70 per cent of those who have failed so far to meet those standards are not pessimistic, though. They hope to be able to withstand competition, the survey said.
www.sofiaecho.com