Georgia Accounting and Bookkeeping Services: What Gegidze Provides
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Georgia Accounting and Bookkeeping Services: What Gegidze Provides
The accounting bookkeeping services Georgia Gegidze provides cover monthly bookkeeping, tax declarations, payroll reporting plus annual financial statements for LLCs and Individual Entrepreneurs. They apply to businesses registered in Georgia (the country), not the US state. You get a team that keeps your records, files with the Revenue Service on time and answers your questions in English.
Georgia's tax system is simple on paper. An Individual Entrepreneur (IE) with Small Business Status pays 1% on turnover. An LLC pays nothing on profit it keeps in the business. The filing load is what surprises most founders.
Take a German software developer who opens an LLC in Tbilisi in March. By June she has skipped three monthly returns because she assumed "no profit, no filing." Each missed return can carry a penalty. The cleanup then takes longer than the original filings would have.
That gap between low rates and steady paperwork is where an accountant earns their fee. As of 2026, every active taxpayer files through the rs.ge portal, and most deadlines fall monthly rather than yearly.
What Accounting and Bookkeeping Services in Georgia Actually Cover
Every Georgian LLC must keep accounting records and submit annual financial statements. An IE keeps a simpler income record. Professional accounting and bookkeeping services in Georgia handle both levels, depending on your structure.
Bookkeeping: the transaction record
Bookkeeping is the log of what came in and what went out. Each entry must match a document the Revenue Service can inspect later.
Sales invoices issued to clients in GEL, USD or EUR
Supplier bills and expense receipts
Bank reconciliation across every currency account
Currency conversion at the National Bank of Georgia (NBG) official rate for the transaction date
The NBG rate matters more than founders expect. A USD payment converted at your bank's rate instead of the official rate creates a mismatch in the declared figure.
Accounting: turning records into tax figures
Georgian corporate tax follows a distribution trigger. The 15% rate applies when profit leaves the company, not when you earn it. Your accountant's job is to spot every payment that counts as a distribution.
Our corporate income tax guide explains how each trigger is calculated.
Compliance: deadlines and your TIN
Every filing runs under a tax identification number. For an LLC, the identification code assigned at registration with the National Agency of Public Registry (NAPR) also serves as its TIN. Georgia issues it automatically, so you do not apply for it separately.
Monthly returns are generally due by the 15th of the following month. The full schedule is in our guide to monthly and annual tax deadlines.
How a Monthly Bookkeeping Engagement Works in Practice
Most engagements settle into a fixed rhythm. Documents arrive in the first week of the month, and returns go out before the 15th. The first month takes longer because the accountant has to learn your business.
Onboarding in the first 5-10 business days
Onboarding is mostly a records review. Your accountant needs a clear picture of what was filed before they took over.
Portal access to your rs.ge account, or an authorisation for the accountant
Bank statements from the registration date onward
Prior declarations to check for gaps or errors
Contracts with your main clients and suppliers
The review often turns up personal tax points too. A founder who rents out a flat in Batumi may qualify for Georgia's tax on rental income at 5%. That special regime applies to residential lettings, not to commercial premises.
The monthly cycle
Once onboarding is done, each month repeats the same five steps. You send documents, and the accountant handles the rest.
The last step matters. Filing a return and paying the tax are separate actions in Georgia. A filed return with an unpaid balance still accrues late payment interest.
Payroll and withholding
Hiring staff adds a monthly payroll declaration. The employer withholds the 20% income tax in Georgia from each salary before paying it out. For employees enrolled in the funded pension scheme, 2% comes from the employee and 2% from the employer.
Payroll errors compound fast because they repeat every month. If you plan to hire locally, see how our payroll management service runs alongside bookkeeping.
Individual Entrepreneur vs LLC: Bookkeeping Duties Compared
Factor | IE with Small Business Status | LLC (standard regime) |
Tax base | Gross turnover | Distributed profit |
Headline rate | 1% up to the annual threshold | 15% on distributions, 0% on retained profit |
Paying the owner | No extra tax, income is already yours | 5% withholding on dividends to individuals |
Monthly filing | Turnover declaration | Profit tax return, plus payroll and VAT if relevant |
Annual filing | Annual income declaration to rs.ge | Financial statements to SARAS, the accounting supervision service |
Record depth | Income and expense log | Full double entry accounts |
Typical fit | Solo freelancer, one main service | Teams, investors, IT companies |
When the IE route is the wrong choice
The 1% rate looks unbeatable, but it is not for everyone. Small Business Status excludes certain activities, including some consulting work and licensed professions. Confirm your activity code on rs.ge before you register.
Turnover tax also ignores your costs. Picture a Ukrainian product designer who pays three contractors 60% of what she bills. Under an IE, she still pays 1% on the full turnover. Under an LLC, she can reinvest the remaining margin at 0% until she distributes it.
The threshold is the other limit. If you expect revenue to approach it, an LLC avoids a forced switch mid-year. Check the current figure on rs.ge, because it has been revised before. Our IE registration service starts with this eligibility check.
What changes in the books for an IT LLC
The taxes for an IT company in Georgia depend on where its income comes from. An LLC with Virtual Zone status pays 0% profit tax on qualifying IT services sold to clients outside Georgia. Income from Georgian clients stays taxable under the standard rules.
That split shapes the bookkeeping. Each invoice must be tagged by client location and service type, so the two income streams never blur. A Tbilisi studio that builds apps for a Dutch client and also designs a website for a local café runs two different tax treatments through one set of books.
Special Tax Statuses and the Extra Records They Demand
A Virtual Zone LLC files the same core returns as any other LLC. It also has to prove, invoice by invoice, that its exempt income really qualifies. Other preferential regimes add similar layers of evidence, and the bookkeeping has to carry that evidence every month.
Virtual Zone: building a qualifying-income file
The 0% treatment applies to IT services created and supplied by the company to clients outside Georgia. Reselling someone else's software or hardware falls outside that scope. A Berlin-founded LLC that writes code for a US client and also resells cloud licenses has to separate those two lines in its books.
For each exempt invoice, your accountant should keep a matching file:
Contract showing the client's foreign location and the service scope
Invoice describing the IT work, not a vague "consulting" line
Proof of delivery, such as a repository link, acceptance email or milestone sign-off
Bank record showing payment received from abroad
If an inspection finds a gap, the Revenue Service can reclassify that income as taxable. The annual side of this regime is covered in our guide to Virtual Zone annual compliance.
International Company status: substance shows up in the ledger
International Company status has historically offered a 5% profit tax rate on distributed profit and 5% personal income tax for qualifying employees. As of 2026, confirm the current conditions with the Revenue Service before you apply. The status depends on real local activity, so your books become the evidence.
That means the ledger must show:
Local payroll with properly withheld taxes
Office rent or other Georgian operating costs
Board decisions and management activity in Georgia
A holding shell with no staff and no local expenses will struggle to keep this status. Our International Company status page explains the eligibility side.
Individual Entrepreneur thresholds and VAT triggers
Turnover tracking for small business status
An Individual Entrepreneur with small business status pays 1% on turnover up to an annual threshold. That threshold has historically been 500,000 GEL (about 165,000 EUR). Confirm the current figure on rs.ge before planning around it.
Your bookkeeper should track cumulative turnover every month, not just at year end. A Ukrainian designer billing 45,000 GEL a month crosses that level in month eleven. The months before the crossing are when you plan the next move. Our article on IE small business status covers what happens above the threshold.
The VAT registration trigger
VAT registration becomes mandatory once taxable turnover passes a set amount within any rolling 12-month window. That amount has historically been 100,000 GEL (about 33,000 EUR). Services billed to foreign clients often fall outside Georgian VAT, but local sales count toward the trigger.
A rolling window catches people out. Counting only the calendar year is a common error, and late registration can mean paying VAT you never charged your clients.
How to Move Your Books to Gegidze, Step by Step
Most handovers from a previous accountant or from self-filing take about 5-10 business days of active work. Messy records or missed filings stretch that time. The steps below follow the order we use, because each one depends on the one before it.
Week one: access and documents
Grant portal access. You add your new accountant as an authorized user on your rs.ge profile. You never share your own password.
Collect the history. Gather bank statements, filed declarations, contracts and payroll records for at least the last 12 months.
Export the old ledger. Ask the previous accountant for the chart of accounts and closing balances in a spreadsheet or standard export.
List open items. Note unpaid invoices, unpaid supplier bills and any open questions from the Revenue Service.
A Polish founder running a two-person LLC usually finishes this stage in 2-3 business days. Delays almost always come from waiting on the old accountant's export.
Weeks two to three: review and corrections
Reconcile balances. We match every bank balance and tax account balance on rs.ge against the ledger. Differences point to missed or doubled entries.
Correct past filings. Where a past declaration was wrong, we prepare an amended return. Fixing it before the Revenue Service finds it usually costs less.
Start the monthly cycle. From here, your books run on the regular schedule set out in our monthly and annual tax deadlines guide.
When you should not switch right now
Timing matters. Avoid changing accountants in the week before the 15th, when most monthly returns are due. Handing over during that window raises the risk of a missed filing.
Do not move mid-way through an open tax audit either. Let the current accountant finish the audit, since they know what was submitted and why. Switch once the audit closes.
What Shapes the Monthly Fee
Business profile | Recurring filings | Main workload driver | Relative scope |
IE, small business status, foreign clients | Monthly turnover return | Invoice count, currency conversion | Light |
LLC, no staff, not VAT registered | Profit tax return when profit is distributed, annual financial statements | Expense categorization | Light to moderate |
Virtual Zone LLC | Standard LLC filings plus qualifying-income file | Separating exempt and taxable income | Moderate |
LLC, VAT registered | Monthly VAT return | Matching input VAT, local supplies | Moderate |
LLC with 5+ employees | Monthly income tax and pension withholding | Payroll changes, leave, bonuses | Higher |
International Company status LLC | Standard LLC filings plus status conditions | Substance evidence, staff payroll | Higher |
Factors that push the scope up
Georgian books are kept in GEL. Each foreign-currency transaction converts at the official National Bank of Georgia rate for its date. A company invoicing in USD, EUR and GBP creates three conversion streams and more exchange differences to post.
Other factors that add hours each month:
Transaction volume, especially many small card payments
Multiple bank accounts across Georgian and foreign banks
Payroll changes, such as new hires, exits and bonus months
Missing receipts that need chasing before month close
Intercompany flows with a parent company abroad
If you hire staff, payroll often becomes the single largest part of the work. Our payroll management service can run alongside the bookkeeping.
Doing it yourself vs outsourcing
Outsourcing is not always the right call. An Individual Entrepreneur with two or three foreign invoices a month, one bank account and no staff can often file alone through rs.ge. That holds if you are comfortable with the portal and keep clean records.
The calculation changes once you add VAT, staff or a preferential status. One wrong classification on a Virtual Zone invoice can cost more than a year of fees. At that point, the hours you save are worth less than the risk you carry.
Frequently Asked Questions
Does a small LLC still have to file annual financial statements?
Yes. Georgian entities submit annual financial statements to the Service for Accounting, Reporting and Auditing Supervision through its online portal. The deadline has historically been 1 October of the following year. The smallest category files a simplified set, and our guide to [accounting standards in Georgia](https://www.gegidze.com/post/accounting-standards-in-Georgia -ifrs-for-smes-vs-simplified-standards-for-small-entities) explains which standard applies to you.
What happens if I miss a monthly filing deadline?
Late filing carries a fixed penalty, and late payment adds interest for every day the tax stays unpaid. The exact amounts change from time to time, so check current rates on rs.ge. The bigger risk is compounding: a missed VAT return can block the next one until you fix the first.
Can my books be kept in English?
Your internal ledger and reports can be in English, and most foreign founders prefer that. Declarations on rs.ge are filed in Georgian. The Revenue Service may ask for Georgian translations of foreign-language contracts during an audit, so keep key contracts bilingual where possible.
Do I need a Georgian bank account for clean bookkeeping?
It is not strictly required, but it makes reconciliation much simpler. Georgian banks issue statements that match local reporting formats, and tax payments run directly from them. If you still need one, see our page on [opening a bank account in Georgia online](https://www.gegidze.com/opening-a-bank-account-in-Georgia -online).
Does the 0% crypto treatment for individuals apply to my company?
No, not automatically. The favorable treatment discussed for resident individuals applies to personal capital gains, not to a company's trading income. A company that holds or trades crypto must record those assets and gains in its books under the normal profit tax rules. The personal side is covered in our crypto tax guide.
How long should I keep invoices, contracts and bank records?
Keep primary documents for at least six years as a conservative practice. The statutory period can differ by record type and by tax, so confirm the current rule with the Revenue Service. Digital scans are generally accepted, but keep originals of signed contracts with Georgian counterparties.
What happens to my books if I move from an IE to an LLC mid-year?
Moving from IE to LLC is not a conversion. The LLC is a new taxpayer with its own tax ID, so the IE's books close on the date you stop invoicing through it. You file a final IE return and deregister or keep it dormant, while the LLC opens fresh books. Clients, contracts and bank details all need updating on the switch date to keep the two sets clean.
