Below I would like to summarise major statutory compliance requirements in the accountancy area in Bulgaria:
Bulgarian accountancy legislation requires that local companies use statutory established chart of accounts for their accounting records. The statutory chart of accounts provides general accounting categorisation, which may be supplemented with additional sub-accounts (if necessary). Further, it should be approved by the management of each company. The above requirement does not preclude companies using additional customised charts of accounts for their internal reporting purposes.
All the transactions should be substantiated with relevant documents and recorded in a chronological and systematic order.
Any primary documents (e.g. invoices) issued by local companies should be prepared in Bulgarian language and currency. If such documents are issued to foreign persons they may be bilingual (i.e. a translation to the respective language and currency may also be added).
The incoming primary documents prepared in foreign language and currency should be translated in Bulgarian language and currency.
The accountancy legislation does not allow corrections of primary accounting documents. Such documents should be annulled and replaced with new, correct ones.
If a local company uses accounting software, it should be able to process data and prepare output documents in Bulgarian language. In addition, such software should be developed in line with the requirements of the Bulgarian Accountancy Act