A guide to our expertise Outsourcing services July 2015 Discover Outsourcing at Grant Thornton Moldova Discover Grant Thornton International Business Report 2015 (http://www.grantthornton.global/en/insights/blogs/blogoutsourcing-beyond-technical-expertise/) To assess the report please go to: https://www2.gtinet.org/marketingg/marketing/documents/ibr/ibr%202014/ibr2015_ Outsourcing_report_FINAL.pdf
Outsourcing services July 2015 Table of Contents Section Page Summary 3 Accounting outsourcing and Tax compliance 4 Technical accounting services 6 Business Process Outsourcing (BPO) in accounting and finance departments 7 Outsourced payroll and HR management 8 Interim staffing services 11 Administrative support services 12 Contacts 13 2
Outsourcing services July 2015 1. Summary Do you require technical assistance for the preparation of statutory accounts? Would you appreciate assistance in drafting position papers regarding technical, complex or subjective accounting issues, for example revenue recognition or financial instruments? Would you like to externalize all accounting processes? If the answer is yes to any of the above questions, then we can help. Grant Thornton provides accounting services and technical support in Moldova. We understand the need for quick access to first class international technical expertise. At Grant Thornton we offer: A dedicated centralised team for the preparation and/or control of statutory audit files, including interaction with your external auditor Experienced professionals to draft and/or technically review statutory financial statements Preparation of position papers regarding technical, complex or subjective accounting issues under any NAS, IFRS, and US GAAP Identification and quantification of GAAP differences Tailored training courses and presentations with insights into recent or impending accounting and technical developments; and Immediate access to technical queries ensuring a quick response to all issues. Benefits of using Grant Thornton: one partner point of contact in Moldova who will coordinate and facilitate the communication; access to the Grant Thornton international network which promises professional advice at all times; high standard audit files constructed by auditors for auditors; assurance that your accounting treatments are technically acceptable, properly applied, and reported; resulting in the reduction of disagreements or conflict with your auditors and within your management group; the opportunity to minimise potential audit differences and management letter points or perceived control deficiencies; and training packages which are specific and tailored for you. Our technical expertise means we are at the forefront in interpreting new standards. We understand how accounting standards are likely to develop. 3
Outsourcing services July 2015 2. Accounting Outsourcing and Tax Compliance Entrusting the accounting function of your business to an external accounting advisory service. The goal is to increase the effectiveness of accounting processes, supporting your core business. It was created especially for businesses with high information needs, usually related to working in an international environment. Our professionals fulfill your bookkeeping, payroll calculation, accountancy and tax reporting obligations. We also advise on management accounting and organisation of accounting-related processes. Our support involves designing the accounting organisation in order to adjust record-keeping and reporting to your requirements, while striving to increase the effectiveness of the accounting function within your business. Tasks comprising the Accounting Outsourcing service include: Accounting Outsourcing Tax Compliance Accounting services compliant with NAS, IFRS, US GAAP. Bookkeeping, preparation of financial statements, accounting and management reporting, services provided using client's accounting software, help desk. Tax compliance. Calculation, filling and lodging of all periodical and annual related fiscal returns. Complex accounting matters. Accounting supervision, reviewing/restoration of accounting records for past reporting periods, adaptation of finance systems, document archiving. Accounting process design and organisation Accounting process effectiveness measurement Audit facilitator assistance. Consists in seconding a senior audit professional in your company to assist/lead the external audit process, to allow your finance team to focus on their daily duties. 4
Outsourcing services July 2015 2. Accounting Outsourcing and Tax Compliance Entrusting the accounting function of your business to an external accounting advisory service. Tasks comprising Tax Compliance services may include: Corporate Income Tax (CIT); calculating the amount of CIT due and prepayments; verification of the client's calculation of the amount of CIT due and amounts of prepayments; verification of procedures related to calculating CIT due and CIT prepayments; tax reviews of data underlying the tax base; Withholding tax; comprehensive analysis of taxpayers proper compliance with their obligations; calculating withholding tax due; obtaining certificates of tax residence; drawing up tax returns; VAT; taxpayer registration. Accounting Outsourcing Tax Compliance 5
Outsourcing services July 2015 3. Technical accounting services Do you have the sufficient technical knowledge to account for complex and judgmental transactions? Do you face the challenge of converting your financial statements to IFRS? Do you have sufficient in-house resources to fulfill all statutory and regulatory reporting requirements on a timely basis? Are you familiar with all local and overseas accounting standards and reporting requirements for your group? Do you have a strong internal control framework over your financial reporting processes? If any of the questions above apply, we believe we can add value to your organisation. We understand that the preparation of statutory accounts for presentation to the external auditors and shareholders is a critical and time-consuming process. With increasingly strict independence rules applying to your external auditors, you may be unable to get assistance on issues such as: Technical accounting services drafting and updating policy memoranda; drafting disclosure notes for financial statements; and assessing the adherence of your financial statements to applicable GAAP and best practice. We have an experienced team who can assist you with these issues and any other technical matters. 6
Outsourcing services July 2015 4. Business Process Outsourcing (BPO) in accounting and finance departments Grant Thornton offers added value in the form of advisory services regarding the transformation and design of accounting and finance departments. The goal of the transformation is to facilitate your business operations by exploiting our expertise in organisation and management. Business Process Outsourcing service involves Grant Thornton taking over the duties of the accounting and finance departments in the following areas: Accounting process and procedure transformation and design, as well as record-keeping considering client's nationwide and/or international business environment Recording large numbers of business transactions in accounting books Settlements in business transactions and cash flow reporting Accounting and management reporting Tax Compliance Payroll administration HR administration Other supplementary services, upon request (so-called supply chain services). Depending on your requirements, we carry out all or selected tasks of the accounting and finance department. Our knowledge, experience and wide range of proven solutions, coupled with our commitment to getting to know your business are all reflected in the highest quality of services we provide. The key stages of transformation include: Analysis and description of the department prior to transformation Accounting process reengineering Project management including change management Application of best practices based on international knowledge about the organisation of accounting and finance departments Developing project documentation, monitoring and self-improvement Selection and monitoring of resources, particularly in terms of personnel, IT, premises Business Process Outsourcing 7
Outsourcing services July 2015 5. Outsourced payroll and HR management Payroll is complicated and time consuming. With the constant changes in the taxation system, payroll management and processing is one of the most challenging responsibilities a company has to deal with each year. How Grant Thornton can help: Whether for an executive group of staff within your company or the organisation as a whole, we can reduce your administrative costs. We will eliminate the insecurity and confidentiality issues arising from running a payroll service in-house and ensure compliance with regulatory requirements. Our outsource payroll team provides you with a cost effective and complete payroll management solution. We have a dedicated and experienced payroll team that may become your payroll department saving you time and money. This service allows you to dedicate significantly more company time to growing your business and focusing on your customers needs. Our comprehensive payroll solution includes: Payroll processing in line with your requirements Calculation of all aspects of tax, social insurance, medical insurance and other statutory deductions Ensuring ongoing and year end compliance with regulatory requirements Keeping you updated on important payroll related dates; Informing you of any budget changes; Co-ordination and management of cross-jurisdiction payrolls with our local member firms; Providing temporary staff to cover leave in your payroll team; Carrying out a review of your in house payroll function; Provision of appropriate payroll reports and analysis in various formats; and Responding promptly to all queries. Benefits of using Grant Thornton: we provide a single point of contact for all your payroll queries; we can ensure full compliance with legal and regulatory requirements; we can guarantee you full confidentiality around the payroll function as a whole or specific executive payroll groups. Payroll and HR management 8
Outsourcing services July 2015 5. Outsourced payroll and HR management Our Payroll Solution: 1-2-3 For Payroll aspects, we process and record for you: Attendance-sheets, sick leave, vacation and other absences of your employees and reflect these in the payroll calculation, Any changes of basic pays, bonuses, attendance entries, sickness absence, deductions, advance payments, Monthly salary related contributions and monthly salary tax returns, Accounting registers, pay slips, periodical statistic reports preparation, Drafting the payment orders for monthly charges and taxes payments, Preparing and submitting the annual tax forms for employees, in compliance with the local legislation. 1. Your input: We establish the form with your specific information that shall be filled in and presented to us monthly This data shall be addressed to us in electronic format together with the attendance-sheet Additionally we might request you to send us an electronic version of support documents. 2. Preview option: We will address to your attention a Gross to Net report where you will have a chance to understand the basis of salary calculation, total cost for the Company per Employee, to verify and approve the payroll. We can prepare other reports as required by your firm. 3. Our deliverables: The payroll calculation Individual electronic pay slips Payment details of taxes Special reporting Optional: Preparation of payroll per cost centre Detailing of Company's taxes per employee Preparation of HR reports: statistics on medical leave, vacation etc. Preparation of salary certificate for credit purpose of your Employee or for medical leave. 9
Outsourcing services July 2015 5. Outsourced payroll and HR management Our HR Administration solution: You may subscribe all or only limited services from 2 previous lists that you would like to externalize to Grant Thornton. Assistance in preparing offers for new hires (salary and other expenses calculation) Drafting new or updating/amending existing individual labour agreements Drafting salary documentation for employee s needs (for loan contracting or official institutions) Drafting internal mandatory regulations and procedures compliant with local legislation Assistance in annual appraisal of your employees Advisory services related to payroll & labour legislation, update on the legislation change Communication with third parties (auditors, fiscal authorities) Supervision of other externalized services by the Client (we assist you in liaising and administrating the relationship with the National Medical Insurance Agency and Social Agency). 10
Outsourcing services July 2015 6. Interim staffing services Grant Thornton has extensive knowledge and experience in providing interim staffing services to organisations. With our resource services, we provide staff for short and long term assignments, in the following areas: Finance management; Financial reporting; Management accounting; Internal audit; Risk management and compliance; IT audit and strategy consulting; Technical accounting services (IFRS/GAAP); and Payroll management and processing. Interim staffing solution How we can help you: We have a committed team with the skills and experience that you require to assist with financial reporting or internal audit challenges you face; and We have the in-house resources to meet the seasonal demands of your business allowing you to match your resource levels to seasonal peaks such as financial reporting deadlines. Our success is based on providing the appropriate skills right when you need them; Our team consists of qualified staff with a wide range of relevant skills and experience; At the core of our service is a professional backed up by a team with relevant experience of working in financial and tax roles in industry. 11
Outsourcing services July 2015 7. Administrative support services Administrative support services Grant Thornton Moldova is able to offer corporate structures and provide full professional services for internationally based clients and clients residing in Moldova which include: Incorporation services; Registration services; Providing a registered office for the company; Offering company secretarial services; Maintaining the day-to-day management of a company; Providing nominee services; Applying for VAT registration; Preparation of commercial agreements and general correspondence; Assistance with opening of bank account; Preparation of notices, proxies and preparation and filing of minutes of directors and shareholder meetings; Immigration services - work and residency Any other support services required from time to time. 12
Outsourcing services July 2015 Contacts Olesea Bride Outsourcing Partner T +373 22 86 05 71 E olesea.bride@md.gt.com Margareta Pavlov Outsourcing Manager T +373 22 86 05 71 E margareta.pavlov@md.gt.com Nadia Oanea Head of Tax Department T +373 22 86 05 71 E nadia.oanea@md.gt.com Grant Thornton Moldova 69, Grigore Ureche str MD-2005 Chișinău Moldova T (office) +373 22 860 571 F +373 22 227 464 E office@md.gt.com 2015 Grant Thornton Romania. All rights reserved. Grant Thornton is one of the world's leading organisations of independent assurance, tax and advisory firms. These firms help dynamic organisations unlock their potential for growth by providing meaningful, actionable advice through a broad range of services. Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to solve complex issues for privately owned, publicly listed and public sector clients. Over 40,000 Grant Thornton people, across 130 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work. 13