Enterprises registered in Bulgaria must apply the double-entry accounting system as stipulated in the Accountancy Act (ZS). This act determines what accounting documents companies are required to keep.
Enterprises must keep the following documents
- A main cash-book: this is mandatory if an enterprise has a cash register. Each cash transaction must be noted down in the cash-book and the records completed on a daily basis. The cash-book must be registered with and stamped by the National Revenue Agency.
- Cash ledger: sales are listed here from the cash register. This ledger is used to record daily entries from the cash register. Each entry must be made on a separate page, and the pages of the ledger must be bound and numbered.
- Client ledger: this ledger is used for keeping records of all monies the company receives or remits by bank transfer, and any sales by instalments. All VAT-registered enterprises must keep a client ledger.
- Supplier ledger: this ledger is used for keeping records of all payments the company makes to suppliers. This ledger should also be used to record any monies due for payment to the company. All VAT-registered enterprises must keep a client ledger.
- Payroll ledger: This is compulsory for all enterprises and contains details of the company payroll.
- Inventory book: this is used for recording all the materials the enterprise uses in the production process, and details of any stock sold.
- Long-term tangible assets register: long-term tangible assets are machines and equipment that the enterprise acquires in order to carry out its business activities. The costs of long-term tangible assets are broken down into a number of periods representing the asset's life cycle. The total time over which an asset can be considered an expense is determined by the tax regulations.
- Revenue and expenditure ledger: this is mandatory for all enterprises. This ledger shows all incoming and outgoing accounts. It is often kept by the company's accountant.
Accountancy documents can also be in electronic format, provided they fulfil the conditions outlined in the Accountancy Act (ZS) and the Electronic Documents and Electronic Signatures Act (ZEDEP).
You should update your account-keeping records on a monthly basis to give you a clear idea of your enterprise's financial status. At the end of each year, an annual report and settlement must be submitted to the National Revenue Agency.
Audits, public presentation and publication
If you have a public company that has a large turnover or has expensive tangible assets, the annual report must be checked by an auditor. The auditor must have access to all relevant accounting documents.