Inventory of Assets and Liabilities in Ukraine | Paper Cloud
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Inventory of assets and liabilities

Inventory of assets and liabilities in Ukraine, from the inventory order to the adjusting entries. Ukrainian companies must take inventory before their annual financial statements. For a December 31 balance sheet, the count can start on October 1. We handle the paperwork.

For LLCs, trading and manufacturing companies and non-profits — in Kyiv and across Ukraine.

For whom
LLCs
Trading
Manufacturing
Non-profits
Timing and cost
Quoted after we assess the scope

When an inventory is mandatory

Ukraine’s Regulation on the Inventory of Assets and Liabilities lists the cases when a legal entity must take inventory. The most common:

Most common

Before annual financial statements

All assets and liabilities are checked before the balance sheet date.

People

A change of the person accountable for assets

On the handover date, for the assets that person was responsible for.

Risks

Theft, misuse or damage

On the day these facts are established.

Exit

Liquidation or IFRS transition

A full inventory when a company is wound up, or on the date it switches to IFRS.

Fires, accidents, natural disasters and court orders also trigger an inventory. The Regulation applies to legal entities, so sole proprietors (FOPs) are not covered.

Year-end inventory timeline

The year-end inventory doesn’t happen in one day. For a December 31 balance sheet, the windows are:

from Oct 1

Fixed assets, stock, receivables and payables

Within three months before the balance sheet date.

from Nov 1

Cash, investments, tax settlements

Cash, financial investments, work in progress and settlements with the budget — within two months.

Dec 31

Balance sheet date

The count is complete and the results are ready for the annual statements.

Land and buildings can be counted once every three years. October and November are the best time to start, so you’re not recounting the warehouse in late December.

How the year-end inventory count works

1

Order and committee

We draft the inventory order: what is checked, when and by whom. Our accountant can sit on the committee.

2

Count and count sheets

Your committee compares what is on hand with the books. We prepare the forms and instructions.

3

Reconciliations

We reconcile receivables and payables with your counterparties.

4

Discrepancy statements

We record surpluses and shortages between the books and the count.

5

Committee findings

The committee explains the differences; management decides how to settle them.

6

Adjusting entries

We post the results and explain the tax effect of any shortages or surpluses.

Always

The paperwork

We handle the documents from the order to the entries and can attend the count.

  • ✓Inventory order, count sheets and reports
  • ✓Counterparty reconciliations
  • ✓Discrepancy statements and minutes
  • ✓Entries in the books
By arrangement

On-site count

We can come on site and count together with your committee — agreed separately.

  • ✓In Kyiv or anywhere in Ukraine
  • ✓Scope and dates agreed upfront

Documents you get

✓

Inventory order

✓

Count sheets and inventory reports

✓

Reconciliation statements with counterparties

✓

Discrepancy statements

✓

Committee minutes

✓

Adjusting entries in your books

Timing and cost

No two inventories are the same, so we quote the timing and price after assessing the scope. It depends on your sites and warehouses, stock list, counterparties and the state of your books. If records are behind, we first restore them.

1

We assess the scope

Tell us about your sites, warehouses and counterparties.

Send a request
2

We quote timing and price

You know when we start and when the results will be in the books — before we begin.

Already with us for comprehensive bookkeeping? We add the inventory as a separate service. We quote the inventory separately, after assessing the scope.

Frequently asked questions

When should the year-end inventory be done?

Before the balance sheet date. For December 31, fixed assets, stock, receivables and payables can be counted from October 1, and cash and tax settlements from November 1. Plan it in October, while counterparties still answer reconciliation requests quickly. We draft the inventory order and schedule, so your team knows what to count and when.

Do sole proprietors (FOPs) need an inventory?

No, Ukraine’s Regulation on inventory applies to legal entities only. Still, if you hold stock, checking what is on hand against your records is worth doing: it reveals shortages, mix-ups and slow-moving goods. We can show you a simple way to do it.

Who sits on the inventory committee?

Management, accounting staff and employees who know the assets, led by the director or a deputy. An outsourced accountant who keeps your books under a contract can also be a member — that is, our specialist. Members are appointed by an order before the count starts, and we draft that order.

What happens to shortages and surpluses?

They go into discrepancy statements, and the committee explains each one. Management decides how to settle them: write off, recover from the person responsible or record as income. We post the results and explain the tax effect, so nothing surprises you in the tax return.

Does the business have to stop during the count?

Usually not: work goes on, and we agree the counting schedule in advance. A warehouse can be counted in parts, after hours or on quieter days. What matters is fixing balances on the count date, so goods moving during the inventory don’t distort the result.

How long does an inventory take?

It depends on the scope: the number of sites and warehouses, the range of goods and the counterparties who need reconciliation statements. We quote the timeline after assessing the scope and agree it before work starts. To get the results into your annual statements, start in October or November.

Do you come on site?

Yes, in some cases and by separate arrangement: we come on site and count together with your committee, in Kyiv or anywhere in Ukraine. Usually we handle the paperwork — the order, count sheets, reconciliations and discrepancy statements — and then post the results. We agree the format when we assess the scope.

Planning your year-end inventory?

Send a request: we’ll assess the scope and quote the timing and price. Start in October or November, and the results will be in your books by December 31.

Send a request · Comprehensive bookkeeping · Accounting records restoration

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