First Bit organizes parallel accounting for a telecommunication and cloud services provider
The main specialization of the Company is data storage and processing, telecommunication services and cloud solutions. While providing services to its clients the Company plays its stake on the high qualification of its employees and the application of innovative technologies. Automated internal business-processes is a key to sustainable development of “Svyaz VSD” in a highly competitive market.
Why did the Company need changes?
Linx’ head office is located in Netherlands (Amsterdam), that’s why the employees of “Svyaz VSD” had to maintain accounting records in accordance both with RAS (Russian Accounting Standard) and IFRS. For this aim the company used two different IT-solutions: “1C:Accounting” and a Dutch “Exact” system.
The necessity of double data entry into different programs required a lot of human resources and resulted into other difficulties, for example, when faced with inconsistencies, the employees could not promptly substantiate the difference between RAS and IFRS accounting records, which was necessary while calculating the deferred tax.
As a result, “Svyaz VSD” Company recognized the necessity to ensure the implementation of parallel accounting according to RAS and IFRS and data translation between them.
“Svyaz VSD” Company set a goal — to implement a unified IT-system to solve the following tasks:
- Maintenance of parallel accounting,
- Optimization of labor efforts needed for the preparation of accounting records,
- Increase in the quality and the transparency of accounting.
Choosing a partner and a software solution
To solve the necessary tasks, the specialists of “Svyaz VSD” consulted First BIT’s International Department.
The choice of partner was determined by a wide closely connected experience in the sphere of enterprise automation and by the fact, that First BIT’s experts offered the most structured plan and a detailed strategy for the further realization of the project, optimal conditions and time limits and they also demonstrated profound knowledge of functional areas of the future project.
To achieve the project’s aims “Svyaz VSD” chose “BIT.FINANCE Management accounting” system due to the System’s wide functionality, which allows to perform the translation of transactions from RAS to IFRS.
The realization of the Project
The project lasted for 7 months and was completed on time. The works were realized in 5 main stages:
- Drawing up and adjustment of the chart of accounts and the mapping;
- Adjustment of parallel accounting according to international standards;
- Adjustment of management accounting;
- The preparation of “BIT.FINANCE.Management accounting” for putting into operation;
- Putting “BIT.FINANCE.Management accounting” into operation.
The results of the Project
As a result of this project, a “BIT.FINANCE Management accounting” System for 5 work places was integrated into the infrastructure of “Svyaz VSD”.
The following functional capabilities were realized:
- Data translation from RAS to IFRS, parallel accounting of fixed assets;
- Balance method of calculating the deferred taxes;
- Closing of accounts;
- IFRS reports formation;
- Formation of an uploading file into Lucanet corporate system;
- Accounting of deferred income, deferred prime cost and artificial debts.
There were also organized a training for the future users, reconciliation of opening balance according to IFRS and the analysis of differences between RAS and IFRS accounting records.
In the future “Svyaz VSD” is planning to further cooperate with First BIT’s International Department regarding the projects on the development of the contract documentation database and the supply coordination system.