The recently adopted amendments to the Accounting Act have the potential to significantly ease the administrative burden on businesses, particularly for small and medium-sized enterprises (SMEs). These changes could have a positive impact on businesses in Ruse, which are key drivers of the local economy.

What exactly is changing?

1. Elimination of Mandatory Financial Audits for Small Enterprises:
   • Small enterprises with assets up to 4 million BGN, net sales revenue up to 8 million BGN, and an average number of employees up to 50 will no longer be required to conduct an annual financial audit. This change will free up significant financial resources for small companies, which can be redirected toward other important business activities.
2. Increased Thresholds for Micro-enterprises:
   • The thresholds for defining micro-enterprises have been increased, now covering assets up to 1 million BGN, net sales revenue up to 2 million BGN, and up to 10 employees. This will allow more small companies to qualify as micro-enterprises and thus benefit from reduced administrative burdens.
3. Mandatory Financial Audits for Larger Companies:
   • Companies that exceed the specified thresholds will still be required to undergo a financial audit. However, the new definitions and thresholds will enable many companies to avoid this process, potentially leading to significant cost savings.
4. Reduction of Administrative Burdens:
   • The changes in the law also include measures to reduce the administrative burden associated with the reporting requirements for SMEs. This includes the simplification of reporting forms and a reduction in the requirements for submitting information.

Impact on Businesses in Ruse

For SMEs in Ruse, these changes will have a direct effect on reducing costs and simplifying the reporting processes. This is especially important for local businesses, which often face limited resources and high administrative costs.

With the removal of mandatory financial audits for a significant portion of enterprises, these companies will be able to focus their efforts and resources on development and innovation instead of dealing with burdensome procedures. Additionally, the new definitions and increased thresholds will allow even more companies to benefit from the simplified conditions.

Conclusion

The changes to the Accounting Act represent an important step toward improving the business environment in Bulgaria and specifically in Ruse. They will help businesses become more competitive and efficient by reducing unnecessary administrative burdens and freeing up resources for investment and growth.

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