Preparation and review of policies

The preparation and mandatory updating of accounting regulations is required by legislation.

The most important regulations to be drawn up are as follows:

  • accounting policies
  • money management rules
  • stock-taking rules
  • valuation rules
  • net cost calculation rules.

Company-specific policies

The time and price of the preparation of the policies is mostly determined by the purpose of the policies and how they are going to be used, because if they are made solely for the purpose of being presented during a tax inspection, it can be prepared in a much shorter time. However, there is a high risk that the policy complies with the legislation, but it is not in accordance with the accounting decisions applied in practice.

Of course, the resources available to the establishment also influence the depth of the policies prepared and introduced.

Generally speaking, the larger an establishment and the more complex its operation, the greater the need is to develop internal policies built on process surveys. The smaller an establishment and the fewer managers exercise controls, the less value a detailed policy has and the more difficult the daily operation is.

(E.g. money management rules in case of a one-man Ltd.)

In many cases, we find that some establishments do not even notice during their growth that detailed policies previously considered to be a limit do not hinder the operation, but rather facilitate it.

It follows that the fee of preparing the policies varies widely and it is important to know what the offer applies to.


Policy established as a result of a process surveyPolicy drawn up only in accordance with the legislation
AdvantageThe responsibilities have been identified. It provides security during a tax inspection, as legally established decision-making is validly regulated. Transparency increases the company’s value.It can be prepared quickly, inexpensive. It can be presented in a less detailed inspection that the establishment has policies.
Disadvantage It can be prepared quickly, inexpensive. It can be presented in a less detailed inspection that the establishment has policies.The responsibilities cannot be determined. A more detailed tax inspection, audit or due diligence may reveal that the establishment does not comply with its policies in practice. This can result in fines, loss of company value.