Setting up accounting in a company refers to the process of organizing and configuring an accounting system from scratch or by improving an existing one to meet business needs and legal requirements. It is one of the first and most critical steps in establishing an efficient financial system, ensuring order and control for years to come.
This process requires the involvement of qualified professionals. A professional team UHY-Prostir can become a reliable assistant in this matter.
What Is Accounting Setup and Who Needs It?
Accounting setup is a comprehensive process that includes choosing accounting methods, developing accounting policies and internal rules, configuring software, creating document templates and registries, and training personnel when necessary.
Accounting setup is essential for:
- Owners and managers – to clearly understand cash flow, profits, expenses, and the actual financial condition of the company.
- Accountants – to work efficiently, as a properly set up system makes accounting simpler and faster.
- Tax authorities – to ensure proper bookkeeping and correct tax calculation.
- Investors and partners – who need transparency before investing or cooperating.
- New businesses – especially when there are no established processes yet.
Accounting setup lays the foundation for orderly and efficient accounting. It involves agreeing on how to handle source documents, organizing document workflows, using digital signatures, managing assets, liabilities, income, expenses, and taxes, compiling reports, and defining internal responsibilities.
Main Goals of Accounting Setup
Accounting in a company is, above all, a structured set of rules that regulate:
- how to record income and expenses;
- how to set product and service prices;
- how to manage settlements with clients and suppliers;
- how to account for salaries, taxes, and obligations;
- how to organize document flow and ensure legal compliance;
- which automation systems to use.
Without a proper accounting system, businesses face chaos — late reports, tax problems, fines, and no real picture of profitability. On the other hand, proper accounting offers:
- Financial transparency – always knowing what you earn and spend.
- Cost control – optimizing expenses and preventing fraud.
- Tax risk reduction – avoiding penalties by maintaining compliance.
- Fast decision-making – thanks to quick access to accurate financial data.
- Easier cooperation – banks, investors, and auditors trust transparent systems.
When Is Accounting Setup Needed?
Situations where setup is required include:
- Starting a new company
- Changing the tax regime
- Business reorganization
- Business scaling
- Adapting to new standards
In all these cases, accounting setup helps streamline management and financial operations.
Key Steps in Setting Up Accounting
The process of setting up accounting involves several important stages that ensure its effectiveness and alignment with the specific needs of the business.
1. Analyzing the Current State and Needs
At this stage, the factors influencing the development of the accounting policy are identified, such as the form of ownership, legal structure, taxation system, types and volumes of activities, technical infrastructure, and more. The current state of reporting, document flow, and internal processes is assessed. Problem areas are also identified, and priority tasks are formulated for further improvement of the accounting system.
2. Developing an Accounting Policy
The accounting policy is a fundamental document that regulates the methods of bookkeeping and the preparation of financial statements. It defines the methods for valuing assets and liabilities, the procedure for calculating depreciation, the principles for recognizing income and expenses, materiality thresholds, and other aspects of accounting activities.
3. Establishing Document Workflow
A logical structure for the flow of primary documents is created, responsible individuals are assigned, and processing deadlines are established. The procedures for internal control and standards for document management are also defined. Special attention is given to electronic document management using a qualified electronic signature (QES), which enhances the security and convenience of working with documentation.
4. Implementing Automation Systems
The final stage involves setting up specialized software for automated accounting, exchange, storage, and processing of financial documents. This includes implementing modern software solutions (ERP, CRM, accounting systems), organizing document storage in cloud services, and integrating various systems (accounting, inventory, sales, etc.). This enables the creation of a convenient accounting system and significantly increases operational efficiency.
Core Elements of Accounting Policy
As mentioned above, a company’s accounting policy is a set of principles, methods, and procedures for maintaining accounting records. It consists of the following key components:
Income and Expense Accounting
Based on clearly defined rules and approaches to the formation of income and expenses, taking into account the specifics of the company’s operations. This not only ensures the transparency of financial flows but also creates a reliable basis for analysis and managerial decision-making.
Asset and Liability Accounting
Involves recording fixed assets, inventories, and liabilities; selecting appropriate methods for asset depreciation, inventory write-offs, and asset revaluation ensures the accuracy of data needed for cost optimization, planning, and control.
Tax Accounting
Tax accounting includes defining approaches to tax calculation, VAT accounting, corporate income tax, simplified tax (if applicable), and interaction with regulatory authorities. A properly configured tax policy helps avoid violations and penalties.
Benefits of Implementing Accounting Policy
It’s important to understand that the main goal of implementing an accounting policy is to unify and standardize, at the internal level, those processes that are critical to the company’s operations and that may be ambiguously interpreted or not regulated at all at the state level. At the same time, the accounting policy “makes life easier” not only for the accounting department but also brings a range of benefits to the entire company:
For management – a clear understanding of the financial situation, easier planning and decision-making thanks to structured reporting. The accounting policy ensures reliable data — financial, operational, and time-based — needed to measure key performance indicators (KPIs), such as expenses, profit, inventory turnover, and to assess progress toward achieving objectives and key results (OKRs) related to revenue and process optimization.
For employees – simplified interaction with documents, less routine work due to unified and automated processes.
For owners – reduced risk of penalties thanks to compliance with legislation and increased transparency of operations.
For partners and clients – faster processing of agreements and documents, which boosts trust and competitiveness.
Thus, a well-established accounting policy not only helps reduce chaos in accounting processes but also strengthens the company’s ability to work toward its goals and performance indicators.
Why Work With a Professional Firm Like UHY Prostir?
Experience and Expertise
UHY Prostir has over 18 years of experience in implementing accounting systems and setting up accounting processes for various types of businesses — from small enterprises to large corporations in industries such as trade, manufacturing, IT, and logistics.
Knowledge of Legislation
Our specialists continuously monitor changes in legislation, helping clients avoid violations and fines. We develop accounting policies that comply with the most up-to-date standards, legal requirements, and the specifics of your business operations.
Individual Approach
We offer personalized solutions for each client. For example, we take into account the specifics of development costs for IT companies, and inventory management for manufacturers. This flexible approach ensures efficient accounting tailored to your needs.
How to Order Accounting Services
Accounting setup is the first step toward transparent and efficient business operations, covering both document management and accounting policy. At UHY-Prostir, we make this part of a comprehensive accounting service, so you receive not just a setup, but full support. We take over your accounting, so you can focus on growing your business. Just follow a few simple steps:
- Submit a request on our website or contact us via the phone numbers listed there.
- Initial consultation — a personal manager will assess your business needs.
- Cost estimation — we analyze the scope of work and provide a quote.
- Contract signing — we agree on the terms of cooperation.
- We get to work — and manage your accounting processes.
The procedure is simple and transparent, and our team will support you every step of the way.
Frequently asked questions (FAQ)
From a few weeks to several months, depending on business size and complexity.
Yes, it ensures transparency and compliance, even in simplified form.
Yes, only the necessary elements can be implemented.
Founding documents, recent financial reports, and internal regulations, depending on your business.
Whenever there are legal or business process changes.
Yes, it ensures compliance and minimizes risk.
Base your choice on business specifics, transaction volume, and software functionality.
Yes, it’s a crucial component.
Income/expense accounting, asset/liability management, and tax accounting.
Absolutely — it should reflect your business’s unique features.
