Accountancy in Bulgaria

Legal requirements

Companies registered in Bulgaria must apply the double-entry accounting system as laid down in the Accountancy Act (ZS). This act determines what accounting documents companies are required to keep.

Accounting rules

Companies must keep the following records:

• One main cash book: This is compulsory if the company has a cash register. Each cash transaction is noted down in the cash book and the records completed on a daily basis. The cash book must be registered and stamped at the National Revenue Agency.
• Sales book: here sales from the cash register are listed. It is used to record daily entries from the cash register. Each entry must be made on a separate page. The pages of the book must be bound and numbered.
• Client ledger: this is for keeping records of all monies the company receives by bank transfer and sales by instalments. All VAT-registered companies must keep a supplier ledger.
• Supplier ledger: this is for recording all payments made by the company to suppliers. It should also be used to record any monies due to the company. All VAT-registered companies must keep a supplier ledger.
• Payroll ledger: This is compulsory for all companies and contains details of the company payroll.
• Stock book: this is for recording all the materials the company uses in the production process and any stock sold.
• Long-term tangible assets ledger: long-term assets are machines and equipment the company acquires to carry out its business. The costs of long-term assets are broken down into a number of periods representing the life cycle of the asset. The total time over which an asset can be considered an expense is determined by the tax regulations.
• Revenue and expenses ledger: this is compulsory for all companies. This ledger shows all incoming and outgoing accounts. It is often kept by the company's accountant.

Accounting documents may also be in electronic format as long as they meet the conditions of the Accountancy Act (ZS) and the Electronic Documents and Electronic Signatures Act (ZEDEP).

Administrative procedures

Annual accounts

It is recommended that you update the accounts on a monthly basis to give you a clear idea of the state of the company. At the end of each year, the company has to submit annual accounts and a statement of payments to the National Revenue Agency.

Audits, public presentation and publication

If your company is a public company, has a large turnover or has expensive tangible assets, the annual accounts must be audited. The auditor must have access to all relevant accounting documents.