Outsourced Accounting Services in Ukraine

We were approached by a client who was planning to run his IT business in Ukraine. Understanding all the advantages of today's tax environment for this type of business, he was planning to transfer a part of his company to Ukraine - namely the department that dealt with software development.

But the client was faced with a complex task and a number of questions. After all, he had to figure out what scheme would be better: to try to open a division with the transfer of personnel, or register a new Ukrainian company and hire its own staff.

Moreover, the client had been doing business for some time already and understood how difficult it was to understand the accounting, reporting process and taxation nuances in a foreign country, taking into account the fact that he wanted to benefit from transferring part of his business to Ukraine.

He needed not only consulting, but also advice on how to organize his business accounting process - to hire an accountant in-house, to do all the accounting through a foreign accountant who does not know all the aspects of Ukrainian legislation, or to look for an accountant in Ukraine for outsourcing.

Related article: How to provide Refundable Financial Aid for your business in Ukraine?

How we proposed to solve the issue of transferring the business to Ukraine

In the Client's situation, the optimal solution would be to register a new company in which his original business would be the sole participant - giving the Client full control over financial matters and management of the Ukrainian "unit".

It was not difficult to transfer employees - our migration lawyers obtained work permits for those employees who agreed to move to Ukraine, and also offered convenient solutions to work remotely, with the employees still working for a Ukrainian company.

The entrepreneur was very interested in the question of how to cooperate with his clients, because they were mostly located abroad, ordering software development on a contract basis. We offered the client two options:

• detailed tax advice, which he could then apply to his work. But to do this, he needed to quickly find an accountant who was well versed in such schemes, and who could implement them safely;

• Provide his Ukrainian company with full accounting and legal support, which would include the organization of accounting and payroll. 

The client chose the second option, reasoning that at the time of entry into the Ukrainian market, it would be more profitable for him than to look for an unproven specialist, or try to configure the entire system by yourself, without such experience in Ukraine.

What we suggested as an alternative to an in-house accountant

Our company has a service package for corporate clients who are planning to start a business in Ukraine. This package consists of four components:

• Submission of tax returns;

• Payroll - our company takes over the personnel accounting of your business, deals with the employment or dismissal of staff, payroll and other payments;

• Accounting - in addition to the tax accounting itself, you need to organize work with the maintenance of bank accounts, which is also provided as part of the service of our team - we keep records of cash flow in the accounts of the company and help solve problems related to bank settlements;

• Legal advice - while working in Ukraine, you may have a variety of legal issues. The monthly service package includes a certain number of hours of work of a lawyer, who will always be in touch, and will help to solve arising issues, subtract working documents, negotiate with the international counterparty, etc.

In fact, by ordering a package of the above services for outsourcing, you save on the permanent salaries of the personnel service, accounting and legal departments.

You can find out the cost of an accountant and a lawyer from our specialists, and the list of services on the page.