A rich accounting culture … what is it?

If someone is said to be a person with a rich common culture, that should sound like a compliment, right?

And if they say about an accountant that he has a rich accounting culture, this is…

This is no longer a compliment at all.

This is, if you ask me, a mandatory requirement for every accountant.

Either you have an accounting culture or you don’t? You are either an accountant or someone who mostly fills out invoices and payment orders.

Is there a precise definition of what accounting culture is?

At the risk of scandalizing traditionalists in this area, I will tell you that

accounting culture is a combination of experience, knowledge of laws, good “reflexes”, good attitude towards clients, courage and …, surprise and general culture.

If I had to compare accounting to a sport, it would be chess, because in our field everything depends on decisions and the choice of combinations.

But for this the accountant must read. A lot to read. Information on all accounting cases. And in general, reading is mandatory for the accountant.

It is probably normal for your customer not to know how many changes to the VAT Act have been introduced in the last few years.

But it is abnormal for the accountant not to know these changes down to the smallest detail.

If you have a rich accounting culture, you will never let your client fall into a ridiculous situation.

Here is one such example.

In short, a company whose business includes e-commerce through the AMAZON platform produces goods and sends them to the Amazon warehouse in Germany, where the goods are stored and directed to customers.

One fine day he receives a notice from the tax authorities in Germany about VAT due. The company is in real shock because…

… because the accountant with a low accounting culture has neglected to read, learn and apply the VAT Law, according to which the Bulgarian company must register under the VAT rules in Germany …

But since this is not done and because the accountant has a low accounting culture, he gives the wrong advice. As a result, the Bulgarian company pays serious VAT in Bulgaria, and then it turns out that it was not due here in Bulgaria.

And if the accountant had read, learned, understood and applied the VAT Law correctly, he would have known that the company would not only not have to pay VAT in Bulgaria, but would have recovered it.

Good accounting culture means that the accountant is knowledgeable even about such exotic legal changes as the famous Art. 97a of the VAT, which requires companies that are not registered for VAT to register under this same article if they do ad on Google or Facebook, so they can receive invoices for their expenses.

But we’re still talking about a good accountant, right?

Hopefully, however, your accountant is aware of the new rules and regimes that apply to online trading and are effective from 07/01/2021.

In the accounting office “Correct Account Consult” we believe and are convinced of the correctness of the saying “A person learns while he lives!”.

Therefore, every day we learn something new and some new combination of the accounting “chess” to be useful to our clients.

And yes, we have a rich accounting culture, but we are constantly enriching it.