Bookkeeping, tax and statutory reporting must reconcile
Georgia’s reporting framework applies IFRS or IFRS for SMEs according to entity category and status, with specific rules for fourth-category enterprises and public-interest entities. Accounting documents generally require six-year retention, and annual reports are filed through SARAS under the applicable timetable.
Set the accounting basis at launch
- Determine the enterprise category and applicable reporting standard.
- Map Georgian statutory accounts to Czech parent or group reporting.
- Adopt GEL functional reporting with controlled foreign-currency treatment where relevant.
- Define invoice approval, expense evidence, fixed assets, inventory and revenue recognition.
- Document shareholder capital, loans, interest and related-party services.
- Set monthly close deadlines, owners and review evidence.
Reporting and audit map
| Area | Practical requirement |
|---|---|
| Financial statements | Prepare under the standard applicable to the entity category and regulated status. |
| SARAS filing | Annual reporting is generally due by 1 October for a calendar-year entity; a non-calendar period is filed no later than nine months after period end, subject to current rules. |
| Audit | Mandatory audit depends on public-interest status, category, group position and sector rules. |
| Public access | Submitted reports may be published under the reporting framework; fourth-category treatment differs. |
| Record retention | Accounting documents are generally retained for six years from the end of the reporting period, unless another rule requires longer. |
Monthly tax-accounting controls
Build a calendar from actual registrations and transactions. At minimum, reconcile sales, purchase invoices, imports, bank accounts, cash, payroll, withholding, VAT, fixed assets, inventory and related parties before returns are approved.
- Do not book from bank statements alone; retain contracts, invoices and delivery evidence.
- Reconcile customs declarations to inventory, VAT and supplier invoices.
- Review director/shareholder expenses for business purpose and taxable-distribution risk.
- Track tax certificates and treaty evidence for cross-border payments.
- Lock periods only after return-to-ledger reconciliation and reviewer sign-off.
Payroll and people records
Maintain signed employment or service agreements, timesheets where relevant, salary and benefit calculations, leave records, expense support and tax/immigration analysis for foreign staff. Contractor invoices should match a genuine independent-business relationship.
Separate payroll access, bank payment release and general-ledger posting where the team size permits. Small teams can use documented owner review and monthly exception reports.
Group and related-party reporting
- Maintain intercompany agreements before charges begin.
- Reconcile balances and currency differences with the Czech counterparty monthly.
- Document service benefit, allocation keys, mark-ups and transfer-pricing support.
- Track loans, accrued interest, capital contributions and dividend approvals.
- Prepare a bridge from Georgian statutory accounts to group reporting packages.
Year-end readiness
Before year end, confirm inventory counts, receivable impairment, provisions, fixed assets, related-party confirmations, tax exposures, subsequent events and corporate approvals. Determine early whether an audit is required and whether the auditor can access contracts and group information.
Frequently asked questions
Frequently asked questions
Must every Georgian company use full IFRS?
No. The applicable framework depends on the entity’s category and status; IFRS for SMEs and fourth-category standards may apply. Confirm classification under the current reporting law.
When are annual reports filed?
For a calendar-year entity, the statutory framework generally uses 1 October of the following year; a non-calendar period is generally filed no later than nine months after period end. Verify any sector or current-year change.
How long should accounting documents be retained?
The accounting law generally specifies six years from the end of the relevant reporting period, unless other legislation or commercial needs require longer.