Accounting law in Romania
What an Investor Should Know About the Accounting LawUpdated on Sunday 17th April 2016
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A foreign investor who has set up a firm in Romania should know a few things about the accounting law in our country and what legal matters involve this. If the businessman doesn’t want to spend much time learning about accountancy, he should hire a professional in this field who will take care of all the financial issues in Romania.
The main accountancy regulations in Romania
For the beginning, the foreign investor must know that in Romania, the main regulations in the field of accountancy are stipulated in Accounting Law no. 82/1991, an act that has been modified many times till present time. No matter what kind of firm you have set up in Romania, you must respect the main accounting regulations in this country. That means you have to keep an accounting record and draw up financial statements every year. In addition to Accounting Law, the Ministry of Public Finance decides what changes should be made in the financial field.
Types of ledgers for each firm
Mainly, a firm should have three kinds of ledgers, kept on paper or electronically:
1. journal ledger where all the economic and financial operations are written in chronological order;
2. general ledger for assets and liabilities recorded every month;
3. inventory ledger for all assets and liabilities, organized by their nature.
All these documents should be stored for at least ten years starting from the end of the financial years they are related to. A special attention is given to payroll acts that should be stored for fifty years.
The investors who obtain, in the previous financial year, a turnover under 35,000 euro may use a simplified accounting system.
Find out more about the accounting requirements in Romania from this video:
Important entities in the field of accountancy
If you have some problems regarding financial issues or you want to discuss with specialists in this field you can go to Chamber of Financial Auditors of Romania and Body of Expert and Licensed Accountants of Romania. At these two institutions you will find the most known specialists and you can ask for advice. Every single investor who starts a business in Romania is responsible for organizing his accountancy according to the Romanian law.
Many foreign investors may find the Romanian accounting legislation too complicated because of too many changes in just a few years. If they don’t want to complicate their activity they should hire a professional or a team of specialists in this field. In Romania, the European Union financial reporting system and the International Financial Reporting Standards are used, so it’s simple for foreigners to understand the basics of this field.