First Bit automates IFRS accounting in the biggest teleshop in Russia

As a result of the project, the Client managed to reduce time needed to form accounting reports according to international standards and also to decrease the number of errors caused by manual data entry.

“Shopping Live” is one of the largest companies operating on the Russian teleshopping market. “Shopping Live” is a TV-shop with a large assortment of goods, starting from clothes to household products. Shopping with “Shopping Live” has become a habit for millions of Russian people.

“Shopping Live” is a part of German HSE24 Group Holding, that’s why the way the teleshop operates in Russia totally corresponds to the European teleshopping culture. However, the location of a parent company abroad makes it obligatory for “Shopping Live” to comply not only to RAS (Russian Accounting Standards) but also to IFRS while preparing accounting reports.

The Project Background

Before the project “Shopping Live” had transformed RAS accounting reports to IFRS in Excel software product, but this process was labor and time-consuming, as a range of operations had to be entered manually.

For the same reason, the probability of errors and divergence between the data in the reports was high, and the search for their reason had taken a lot of time.

“Shopping Live” was faced with the task of choosing and implementing a software solution, which would allow to simultaneously prepare accounting reports according to Russian and international accounting standards.

For the realization of this task, the Company contacted the specialists of First BIT’s International Department, with whom it had already had a successful experience in the sphere of implementation of “1C: Trade Management 8” software product.

Choosing a Solution

Having studied the aims and tasks of “Shopping Live”, the First BIT’s consultants recommended to choose “BIT.FINANCE.IFRS”.

“BIT.FINANCE.IFRS” is a fully functional solution, designed for the automation of processes related to regulated accounting and accounting report formation according to IFRS.

The program allows to form entries according to IFRS chart of accounts in online regime, to conduct parallel accounting of fixed assets according to IFRS and calculate deferred taxes by balance method.

An additional reason for choosing this software product was the simplified procedure of reconciliation between RAS and IFRS accounting reports.

The Project Realization

The project had 4 main stages:

Setting up translation (mapping development and adjustment in the system);
Setting up simultaneous accounting (locating operations, that are impossible to get by translation, adjustment of their recording in the system);
Preparation for the operational testing (transferring of the settings into the working base, user training on working with the system);
The system’s operational testing.

The principal distinctive feature of the project is the adaptation and implementation of a software product in short time (3 months) and also compliance with high project standards and the Client’s planned budget.

The Results of the Project

As a result of the project, the First BIT’s specialists have:

integrated “BIT.FINANCE.IFRS” with “1C: Accounting” already used in “Shopping Live”;
transferred IFRS accounting model from a transformational one to a parallel one
set up “BIT.FINANCE.IFRS” system and launched its commercial operation.

The implementation of the new system has allowed the Company to:

speed up the process of preparing full package of IFRS accounting reports;
eliminate errors, caused by manual exchange and uploading of the financial information;
simplify the reconciliation between RAS and IFRS accounting reports;
reduce labor costs needed for preparing the company’s accounting reports with all the necessary standards (Russian and international);
increase the transparency of accounting in whole and of the separate operations, related to its preparation. To get access to detailed data;
save resources for system maintenance, as the implemented “BIT.FINANCE.IFRS” solution has gone through minimal adaptation during the project.