Successful business in Georgia. The need for a corporate card and account for companies in Georgia
All legal entities in Georgia must have a corporate bank account. Why it is necessary, what advantages a corporate card gives and how to use it, read this article right now! Become the owner of a successful business in Georgia with our help!
Find out why you need a corporate account⬇️
It is important for owners of their own business in Georgia to understand the need for competent accounting of all company expenses. For this purpose, the registration of a corporate card in any Georgian bank is perfect.
The corporate account helps to control all transactions, facilitates reporting to the tax authorities and is convenient to use.
Who needs a corporate card and why
Individual entrepreneurs and individuals do not need such a card, since their account is considered personal. Corporate accounts are opened only for legal entities, linked to the company's current account.
As mentioned above, using a card is much easier to keep records of transactions, submit reports and conduct successful business in Georgia and abroad.
The corporate card allows you to:
- pay state duties,
- purchase goods for a company or office,
- pay for company services,
- regulate travel expenses,
- conduct international settlements.
Advantages of the card for corporate clients:
- ensuring security,
- controlling expenses and income,
- no risk for large transfers,
- instant blocking in case of loss,
- cash withdrawal notifications,
- reduced commission.
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Payment of personal expenses from a corporate account
If absolutely necessary, you have the right to pay your own expenses with a card issued to the company. At the same time, if you make up the amount before the end of the reporting period, it will not be taken into account in the tax. Otherwise, 20% tax will be withheld from this amount.
Therefore, the use of a corporate card is possible, but undesirable, as it threatens with excessive taxes.
Paper documentation for tax reporting
The main advantage of a corporate card is that all transactions on the card immediately go to the accounting department, so you do not need to save checks.
Nevertheless, it is mandatory to provide contracts, invoices or certificates of work performed. Otherwise, the expenses will be considered unconfirmed and subject to additional tax. In addition, they can be counted as spent on personal needs, and in this case the tax will be even higher.
In case of payment of the company's needs in cash, you will have to keep the checks. They will be the confirmation that the money has not been withdrawn for personal purposes. Cash withdrawal from a corporate card is not prohibited.
Replenishment of the corporate account
The standard multi-currency card in Georgia implies linking to lari, dollar and euro. You can transfer and top up the company's account using the same methods as personal cards. To do this, use terminals, bank offices, transfers from another account.
The presence of a corporate account is mandatory for any company. With a competent approach to doing business in Georgia, you can become the owner of a successful company with a good profit.
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