An international company with a Russian subsidiary approached LowLands Accounting Services for help with the internal reporting from their Russian branch to the Group’s finance department. The company faced challenges when interacting with their local Russian accounting department
Client’s problems with Russian accounting:
- Internal reporting was often missing the deadlines.
- The Russian subsidiary over time had grown to become a substantial business and as such it was included in a more extensive review during the Group’s yearly audit. During this audit it appeared that it was not possible to generate a clear reconciliation between internal reporting and Russian statutory reporting.
- After further investigations it turned out that the Group’s finance department assumed accrual accounting to be a basis for internal reporting, where in reality the local accounting department did not have the knowledge and understanding to implement this. This had lead to incoherent reporting.
As a result of these findings, the foreign company’s finance department sought for practical support in making sure that the management reporting would be of required quality and delivered in time.
Accounting outsourcing solutions by LowLands
Together with LowLands IFRS specialists the case was discussed and the following solutions were implemented:
- Together with the local accounting department, specialists from LowLands revised the reporting method and developed a systemized approach for the monthly reporting.
- Together with the help of LowLands consultants the local accounting department optimised the Russian accounting for accrual accounting.
- LowLands provided a reporting model, where there would be a clear transformation from the standard Russian accounting structure into the required management reporting model.
- The reporting model was worked out based on the already available local ERP solution, without a need to implement new software or accounting procedures on the Russian side.
Results of accounting outsourcing by LowLands
As a result of these implementations the company achieved:
- Timely reporting;
- Accurate reporting;
- Systemized reporting which could be executed by any experienced Russian accountant after minimal additional instructions
Does your company experience challenges with management reporting from your Russian subsidiary? Or would you like to find out more about accuracy increasing and cost saving solutions? Or maybe you just look for a solid outsourcing solution for your Russian entity. In any case, feel free to contact us via info@lowlands.biz
