The selected financial year must be compatible with the Georgian accounting and reporting requirements applicable to the company. For a newly established company, the first reporting period begins only on the relevant incorporation or opening date and may therefore be shorter than a full year. Within the financial year, monthly accounting periods make it easier to reconcile bank accounts, cash, receivables, payables, and taxes. For VAT registration, the tax period is the calendar month; returns and payments are generally due by the 15th day of the following month. Other tax, financial, or internal reports may have different periods and deadlines, so they need their own calendar entries. Invoice date, service date, payment date, and posting date should be stored separately so transactions can be assigned to the correct period. A deadline should be set for how long a period remains open to accommodate late-arriving documents, along with a procedure for making subsequent corrections. After a month has been approved, changes should be possible only with authorization and a traceable audit log. Quarterly and annual reports can be derived from the reconciled monthly periods. Review the settings again after registration, a change in tax status, or a change of financial year.
Planning reporting periods before starting a business in Georgia
A reporting period defines the period whose business transactions are summarized in a report or financial statement. A company in Georgia should set up its financial year, its first shortened period, and its monthly accounting and tax periods in the system before operations begin.
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