As everybody knows, the labor legislation is quite dynamic in our days. The payroll is an important part of the accounting system. There are several changes regarding the payroll, which entered into force as of Sunday, January 01, 2017.

We’ve decided to inform you about the three most important changes for 2017:

The first change is associated with the minimum monthly wage. The updated medium-term budget forecast of the Government for the period 2017-2019 provides for an increase in the minimum wage to BGN 460 /from BGN 420/ as from January 1st, 2017 and to keep it at this level in 2018 and 2019.

The minimum wage increase has been made possible by the economic growth, the steady GDP rates in recent years, the larger number of employees, and the rise of the average wage. The idea is to encourage job seekers, to guarantee a better satisfaction of the needs of minimum wage earners and their families, and to reduce the risk of working poor. Despite this change, the Labor force in Bulgaria has been very attractive for foreign investors. Please, check the information from the table regarding the minimum wages in the European Union.

The second important change with the payroll are the social securities contributions. The social contributions paid under labor contracts grow by one percentage point, with 0.56% of this paid by the employer and 0.44% paid by the employee / total 1%/. One more percentage point will be added in 2018.

The third and most important change affect mainly the owners of small companies and freelancers. The minimum insurance income for self-insuring workers rises and is now BGN 460 /from BGN 420/.

We believe people are one of the most important assets of every company. It’s critical to avoid understating of your payroll system. If you have any questions about the changes in the labor legislation, don’t hesitate to contact us. Our accounting company is specialized provider of payroll services in Bulgaria.  You can find out more about our payroll services here.

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We shared the part one of our understending for a trusted advisor / accountant. Today we’re sharing the second part. According to a recently made survey, it turns out that it is really important for the small business to have a good accountant whose job will be not only helping you in taking the right and important financial decisions, but who will also play a certain role into the financial strategy of the company for a long-term period. And the information gathered from that survey points out that the owners of small businesses wish exactly this for the accounting services that are provided by their accountant.

If you own a small business company, for sure you need to hire an accountant whose job is to take care of your financial documents. So when you need bookkeeping services, you better look for a professionals who will not only follow the numbers, but who will also give you some advice when you put goals in front of you and your business when it is time to set your budget or when you do forecasts. Doing all those things is not so easy, especially if you are not dealing with business for longer time, but you are new at this. When you need some help for understanding something, your accountant is the person you should seek for help. If he is not able to do that, then you better look for someone who will be.

If you have such a person who you can trust, he should also be able to follow what your progress is in accordance to the goals that you have set for your business. He needs to understand what your limits are and alert you if he sees there is something wrong with the direction that your business is going and if you are not following the goals you have set for your business.

The last thing that you need to look for when choosing the right accountant for your company is the technology that he uses. Those technology tools should be new and innovative so that your resources and time are used at maximum. When business owners made a list of the desired services in a recent survey it turned out that a dashboard to monitor the business is on third place.

Remember that you are the customer and you are the one that chooses your accountant. Such type of services – financial tracking dashboards are really useful for those owners who are quite busy and do not have the physical time to follow everything. It is not so difficult to follow this information, if you can use financial data that are automatically imported.

When your accountant uses such tools like for example online dashboards, it is much easier for him to follow how things are going for your business. And if you do not have such an accountant that can offer you all those services and tools, perhaps it is time to think twice if it is time to change him and find a new one.

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You own a private business and that means that you need and for sure you have an accountant, a CPA or a bookkeeper. For hiring such a professional to deal with the finances of your company, you pay a certain monthly fee. You usually use them only for getting accounting services, but it is almost a hundred percent sure that your accountant knows your financial deals even better than you, because often he is the person that gives you advice in this area. And if you need to build a solid financial strategy, the best decision could be to consider your accountant as your partner.

And if you want to get the maximum from such a relationship, here is what you should be looking for:

Usually, you hire your accountant when your company is established and he is with you since that event has happened. So he knows quite well what the state of your financial data is. Your accountant is aware of all the ups and downs your business has had during the years. Using the accounting services and bookkeeping services that accountants provide, you get all the knowledge that these experts have in order to make good decisions, concerning the finances of your business.

So when you are about to hire an accountant, the best will be to look for one who will not only keep your books up-to-date, but who will also give you advice on the financial decisions that you usually need to take. The usual practice is to work with an accountant on a monthly basis and in the end of the month, to review the numbers and set up goals and decisions that will be the best ones for the future period. The aim is to grow and move your business only in the right direction.

And if you have an accountant, and you are happy with his work, but he does not offer such services for developing your relationship further, then your variant is to look for a good CFO whose job is to give financial analysis so that you run your business well and it is financially healthy.

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