What we do
Nineteen services across accounting, audit, tax, legal and valuation. Below is the full list — tell us which one you need.
Accounting services
Setting up your accounting structure
Setting up an accounting structure involves several stages: developing the accounting policy; drawing up a chart of accounts that reflects the nature of your business transactions; building a structure that makes day-to-day recording fast and accurate, automating it in your accounting software, and allocating roles and responsibilities across the finance and accounting team.
Reconstructing accounting records from primary documents
If you suspect that your accounting is incomplete or has not been kept to the required standard, this needs to be established and put right. Elit Audit reconstructs and reorganises accounting registers for past periods on the basis of primary documents. When the work is finished you will know with certainty that every potential problem has been resolved and that the company has a sound accounting base.
Implementing accounting software
Implementing accounting software properly raises both the quality of your records and the productivity of your team. The process covers: building a practical and efficient chart of accounts within the software; training the accounting staff; configuring standard transactions individually for each user; and defining staff permissions and duties, working hours in the system, and the set of orders and reports required.
Remote accounting services
Elit Audit provides full remote bookkeeping, agreed in advance with your management and on a defined timetable. We are focused on saving your time: if you do not need an accountant on site and email or telephone contact is sufficient, the accounting can be run remotely. On an agreed schedule we collect your primary documentation and process it in the accounting software.
On-site accounting
For companies that need accounting support on their own premises, our specialists come to your office, maintain the accounting records for your business transactions and advise you on day-to-day questions.
Audit and assurance
Financial audit
The Elit Audit team will assess how far your finances comply with Georgian legislation and regulatory requirements. Our financial audit service examines every financial record in detail and reviews your internal control mechanisms and procedures. A full-scope engagement means that once the audit is complete we also help you resolve the issues it brings to light.
Audit and review of financial statements
The purpose of financial statements is to present a company's financial position and performance. An audit of financial statements confirms that the results and figures presented are accurate and fair, and in doing so it underpins trust and transparency between the company and all its stakeholders. Audits are relied on by: shareholders and owners not directly involved in management; prospective investors assessing the potential of an investment; banks and suppliers looking at financial capacity and solvency; the public and employees judging the company's reliability; interested authorities assessing financial integrity; and managing partners and owners preparing to list the company's shares. Our specialists combine international experience with knowledge of local requirements: we identify and assess the risks of material misstatement, plan and perform procedures designed to respond to those risks, and obtain sufficient appropriate evidence to form the basis for our opinion. Our methodology follows the International Standards on Auditing, and our audit software streamlines planning, performance and completion in line with every requirement. On the basis of the evidence obtained we express an opinion on whether the financial statements are free from material misstatement, whether due to fraud or error, and issue our auditor's report. We apply the international standard on quality control and observe every requirement of the Code of Ethics for Professional Accountants. **A review** is a limited assurance engagement and differs from an audit. It comes in two forms: review of financial statements (ISRE 2400), where the objective is to obtain limited assurance as to whether the statements as a whole are free from material misstatement; and review of interim financial information performed by the independent auditor (ISRE 2410), which does not provide a basis for expressing an opinion on whether the information gives a true and fair view.
Compilation engagements and agreed-upon procedures
**Compilation.** Organisations often need a proper report on the performance of an engagement, together with assistance in preparing and presenting financial information. In such cases we carry out compilation of financial statements in accordance with International Standard on Related Services 4410. Because a compilation engagement is not an assurance engagement, it does not require us to verify the accuracy or completeness of the information provided by management, nor to obtain evidence in order to express an audit opinion or form a review conclusion. **Agreed-upon procedures.** Organisations sometimes need audit procedures performed on a single component of the financial statements or on specific line items — revenue or total assets, for example. The objective of such an engagement is to perform the procedures agreed between the auditor, the organisation concerned and any appropriate third party, and to report the factual findings. That report conveys no assurance: users assess for themselves the procedures we performed and the facts we found, and draw their own conclusions. The report is restricted to the parties who agreed the procedures, since those unaware of the reasons for performing them may misinterpret the results.
Investment confirmation and other assurance services
**Investment confirmation** is, after audit, the most sought-after and widely used assurance service, established in practice for state institutions as well as international and private organisations. Our objective is to obtain sufficient appropriate evidence that the commitments attached to the investments concerned have been properly fulfilled. We then issue a conclusion on which the intended users can rely for the purpose they have in mind. **Other assurance services.** Assurance procedures agreed between the parties involve performing an engagement for the client in accordance with the International Standard on Assurance Engagements (ISAE) 3000 — that is, expressing an opinion on the fact of performance and issuing the corresponding conclusion. We obtain evidence on which to base that conclusion, the purpose of which is to raise the confidence of intended users other than the responsible party in the subject matter under review.
Tax services
Tax advisory
Our team provides a high-quality service to companies across every category of business: identifying the developments and needs that matter to you in good time, and advising accordingly. We make sure you stay abreast of changes in tax legislation and receive the advice you need so that every change is correctly reflected and integrated into your business processes without delay. Sound advice is essential if tax risks — and the scope for optimisation — are to be identified early and addressed through planning. That calls for a qualified tax adviser and auditor whom you trust and who knows your business well. We advise not only companies operating in Georgia but also foreign companies intending to start operations here. Our services include: auditing tax liabilities for past periods, auditing current returns, one-off consultations, support during tax audits and disputes, international taxation and transfer pricing. **A one-off tax consultation** means a full and detailed examination of the tax treatment surrounding the question you raise. Whether you are starting a new business or running an existing one, understanding the tax position in good time is what keeps expectations realistic and operations compliant. Our advisers will: develop an optimal tax strategy for the transactions you plan; make sure your planning withstands detailed scrutiny by the regulators; answer your question online or in a meeting; and prepare a written recommendation in line with the legislation.
Valuation of international controlled transactions (transfer pricing)
Transfer pricing is the valuation of international controlled transactions. Controlled transactions include financial and commercial transactions between a Georgian enterprise and a related non-resident enterprise, or between a Georgian enterprise and a resident of a preferential tax jurisdiction — even where no relationship between them is apparent. Tax legislation requires controlled transactions to be measured on an arm's length basis for tax purposes.
Legal services
Drafting legal documents
Following a legal consultation, you may need formal documents prepared — applications, claims, complaints, statements of defence, motions and others. Our legal team prepares documentation on any matter arising in civil and administrative proceedings.
Administrative law
Both individuals and companies have to deal with state authorities. These dealings frequently give rise to difficulties that call for qualified legal support, which covers: advice; preparation of documents and handling of correspondence; representation in court; and advocacy services.
Employment law
No business can operate without employees. To avoid unnecessary problems, companies need qualified support in this area. Our service covers: advice; preparation of documents; representation in court; and advocacy services.
Valuation services
Stock counting and valuation
Companies need stock counts more often than fixed-asset inventories. The faster the goods turn over, the more frequently the question arises. Stock is also the area where losses occur most often, including through theft and pilferage. The Elit Audit team and the specialists we engage carry out counting, listing and reconciliation against planned balances for raw materials, work in progress and finished goods, all within tight deadlines. This allows the client to keep continuous control over inventory and to respond quickly in critical situations. Georgian companies also come to us for monthly or quarterly stock checks and valuations. Stock is typically the largest component of a client's current assets, so a change in its price can materially affect business decisions.
Fixed asset valuation
Every management team needs to know what long-term assets it holds and what they are worth. The carrying amount left after accounting depreciation often fails to reflect the real, market value of fixed assets. The gap between market and carrying value can be material and can critically distort how the company's financial position is perceived. Elit Audit values individual items of property, plant and equipment, and also groups them logically into cash-generating units in order to value an autonomous business micro-system. The results may affect both the financial statements and the property tax calculation with its related tax reporting. The service can also cover listing and recording fixed assets, generating and assigning individual codes, sticker tagging, and implementing a flexible system for managing long-term physical assets.
Business valuation
Why value a business? What is a particular company actually worth? As a rule, owners, managers and prospective investors hold sharply different views on a company's value. A firm's value is not simply assets less liabilities: a business may be worth considerably more or less than the equity calculated that way and shown on the balance sheet. Elit Audit's certified business valuers determine enterprise value in accordance with the International Valuation Standards (IVS). Depending on the circumstances, three approaches are used: market (most often), income (fairly often) and cost (rarely). Our responsibility is to establish the market value of the asset at a given moment through a fair valuation — taking into account how the asset is currently used, its potential to generate future income, and market appetite for it.
Real estate valuation
Both companies and private individuals come to us for property valuations. Demand for valuing land, industrial buildings, agricultural plantations and commercial or residential space arises from many directions: owners want to know what their property is worth; investors want the real value of the investment; the Revenue Service wants to know the value on which the business should have declared property tax; insurers want to know the value of the assets against which they are accepting indemnity risk; and banks want to know the value of the assets over which they hold security. The Elit Audit valuation team appraises any real estate on the controlled territory of Georgia within an average of three working days. Once terms are agreed with the client we begin inspecting and photographing the property and analysing the information; the next step is identifying comparables across a range of databases. Once the data has been processed, the value of the property is determined. The fee for the valuation itself is set individually by agreement with the client. It is the valuer's responsibility to establish the market — the fair — value of the asset. That requires taking into account how the asset is currently used, its potential to generate future income, and the likely appetite of other market participants. The value of the same property can differ materially at different times and in different conditions. Elit Audit works to the International Valuation Standards (IVS). Our team has deep knowledge of the property market and the capability to determine market value. A valuation is needed before you sell, buy, let, pledge or divide property or raise bank finance against it, and before construction or reconstruction begins.
Business advisory
Business plan
A business plan is an important part of running and managing any business effectively; financial institutions also ask for one, particularly from start-ups. Entrepreneurs prepare it when launching or expanding a business. Its main purpose is to assess the strengths and weaknesses of the business and to explain the field of activity to prospective funders. The plan should describe every principal aspect of the intended activity, with clearly stated objectives and the means of reaching them. A business plan should cover: **An executive summary** — a synopsis written last but placed on the first page. It introduces the reader to the type of business and its competitive advantages, and sets out summary financial figures: how much is needed to start, what share belongs to the owners and to funders, and what the money will be spent on. **Management and organisation** — the legal form under which the business is registered; who the owners and managers are and what experience they bring; the organisational structure; who the employees are and how they are remunerated. Short and long-term objectives belong here too. **Product and service** — a detailed description, its characteristics and its advantages over competitors; where relevant, details of any patent, trademark or licence. **Production plan** — the activity from purchasing raw materials through to finished goods. It shows the scale of the business, whether it is seasonal, and any particular production technology; the associated costs are set out, which helps in calculating unit cost. It also shows what property and equipment the business owns, what more it needs, and what the owner intends to buy from own funds as opposed to borrowing. **Marketing plan** — competitor analysis (who they are, what they sell and at what prices), an assessment of seasonality, pricing, sales territory, customer characteristics and marketing activities. **Financial plan** — projected income and costs, together with the funding budget: how much is needed in total; how much is the owner's own investment and how much is being requested as a loan; what the owner intends to acquire within the available budget and over what period the funds will be drawn. This is precisely the information a lender looks for. It is worth remembering that a business plan matters first of all to the owner: it sets expected profit in advance and then serves as the benchmark against which actual performance is measured.