Financial planning sets a company's future revenue, costs, cash flows and assets; budgeting turns the plan into linked budgets with named owners and monthly budget-vs-actual control. Key Solutions in Kyiv builds budgets on your Ukrainian accounting data and sets up the planning cycle.
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In brief
- When you need it: the P&L shows a profit but cash runs short, or head office or a bank asks for a budget for the Ukrainian entity.
- What you get: P&L, cash flow and forecast balance sheet formats, a budget procedure, a payment calendar and a variance report.
- Timing: set after a review of your accounting and fixed in the contract.
- Cost depends on the format, the number of entities and responsibility centres, and the state of the books.
- Where to start: send last year's trial balance and any budgets you use.
Financial planning and budgeting: what they are
Financial planning sets revenue, costs, cash flows and asset structure for one to five years and is usually tested in a financial model of the business. Budgeting is its working tool: linked budgets with owners, a calendar and monthly control. Three budgets make up a working minimum:
| Budget | What it shows | Basis |
|---|---|---|
| P&L budget | Revenue, costs and profit | Accrual: when income and expenses arise |
| Cash flow budget | Operating, investing and financing cash flows | Cash: actual payment dates |
| Forecast balance sheet | Assets, liabilities and equity at period end | Balances at a date |
The accrual principle comes from Art. 4 of the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" (Закон № 996-XIV), which is why profit and cash differ month by month.
Budgeting in a foreign-owned company in Ukraine
A Ukrainian subsidiary keeps its statutory books in hryvnia (Art. 5 of Law No. 996-XIV), while head office usually plans in its own chart of accounts and currency. The budget connects the two:
- local accounts are mapped to the group chart once, so actuals reach group reports without rework;
- the group currency is a separate view at a stated rate, with exchange differences on their own line;
- Ukrainian VAT, corporate income tax and payroll dates go into the payment calendar;
- where the group reports under IFRS, budgeting is combined with IFRS transformation of financial statements.
What the service includes
The scope of this management consulting service is agreed before the start:
- review of the statements, accounting policy and management reports;
- responsibility centres and budget owners;
- chart of budget items and budget formats;
- planning drivers, norms, base and downside scenarios;
- payment calendar and budget procedure;
- budget-vs-actual reporting and support through the first cycle.
How we work
- Accounting review Financial statements, accounting policy, account analytics and current management reports.
- Financial structure Responsibility centres, budget items and their owners.
- Budget formats and method P&L, cash flow and balance sheet formats matched to your accounting data, with drivers and scenarios.
- Budget procedure Deadlines, approval levels and rules for revising the budget.
- Budget-vs-actual control Variance reports and checks that fit with internal financial control.
- Pilot cycle and training The first budget cycle runs with our support while your staff learn the process.
Timing
We set the timeline after the accounting review and fix it in the contract. It depends on the number of entities and responsibility centres, the state of the books and how quickly approvals come from your side. The pilot covers at least one full month: budget, close and first variance report.
What affects the cost
| Factor | Effect on scope | What to prepare |
|---|---|---|
| Format | One-off consultation or full set-up with a pilot cycle | Questions to settle first |
| Scale | Each entity and responsibility centre adds formats and approvals | Organisation chart, list of entities |
| State of the books | If actuals cannot be captured by budget item, accounting is set up first | Trial balance, accounting policy |
| Tools | Spreadsheets, an accounting-system module or a planning service | Name of the accounting system |
What we need from you
- Financial statements and trial balance for the last year.
- Accounting policy and chart of accounts.
- The budgets or spreadsheets you use now.
- Organisation chart and future budget owners.
- Owners' targets for the year and a finance contact person.
What you get
- Approved budget formats with a chart of budget items.
- An annual budget by month, built with your team.
- A budget procedure with deadlines and approvers.
- A payment calendar with tax and corporate payments.
- A variance report template with materiality thresholds.
Tax and corporate payments the cash flow budget must include
Payments with statutory deadlines are the ones most often missing from a cash flow budget.
| Payment | Rule | Budget impact |
|---|---|---|
| VAT | Return within 20 calendar days after the month, payment within 10 more days (Tax Code of Ukraine (ПКУ), cl. 203.1, 203.2) | Monthly outflow on fixed dates |
| Corporate income tax | Quarterly; annual if last year's income was up to UAH 40 million (ПКУ, cl. 137.4, 137.5) | Quarterly payers plan outflows more often |
| Advance tax on dividends | Paid before or with the dividend; not charged on payouts to individuals (ПКУ, 57.1-1.2, 57.1-1.3) | A separate line next to the dividend |
| LLC dividends | From net profit, within six months of the decision; not allowed if assets cannot cover creditors' due claims, before or after the payout (Закон № 2275-VIII, Arts 26–27) | Solvency test first |
Legal framework
Rules the work relies on
- Law of Ukraine No. 996-XIV (Закон № 996-XIV), Art. 3(2), 4, 5, 8(5) — accounting principles, hryvnia, management reporting.
- Tax Code of Ukraine (ПКУ), cl. 57.1-1, 137.4, 137.5, 203.1, 203.2 — tax periods and payment deadlines.
- Law No. 2275-VIII on limited liability companies (Закон № 2275-VIII), Arts 26, 27, 31 — dividends and net assets.
- Code on Administrative Offences (КУпАП), Art. 164-2 — financial plans of state-sector enterprises.
Risks, and why to hand budgeting to a contracted team
Budget errors surface when the money is already needed: a cash gap behind a profitable P&L, dividends paid without the solvency test of Art. 27 of Law No. 2275-VIII, or net assets falling by more than 50% against the previous year-end, after which a members' meeting must be held within 60 days (Art. 31(3)). Key Solutions works under a contract that fixes scope, timing and responsibilities, builds budgets from your accounting data and involves the group's lawyers on corporate questions.
Why Key Solutions
- Turnkey, with no extra hassle
- We take the whole task: documents, calculations, reporting and correspondence with the State Tax Service. You make the decisions, provide source documents and sign; we do the rest and contact you only when it matters.
- We take on the tax office
- Information requests, blocked tax invoices, inspection reports: we prepare explanations, rework documents and appeal until the issue is closed. Where the law is in dispute, we work together with the group's lawyers.
- We see it through
- Your case stays on track: the specialist running it remains with you, even if an inspection or audit drags on for months. Statutory audits are performed, and the report signed, by a partner audit firm entitled to perform them; we handle preparation and support through publication, so you deal with one team from start to finish.
- Boutique-level involvement
- A senior specialist runs your project personally (see the Our employees page), backed by 14 years of Innova group practice in 50+ countries. Non-standard tasks are our field: where you hear “it can’t be done”, we look for a lawful way, and group companies cover the rest: legal.ua for legal matters, crystal.tax for crypto-asset taxation.
- Your affairs stay yours
- Information about your company, turnover, payroll and counterparties reaches neither competitors nor third parties. We disclose only what the law or a procedure requires, and the contract says so.
- Faster and right the first time
- Full involvement: your specialist learns your books, contracts and business, so documents and reports are ready on time with no rework. The group's 14 years of experience let us get right the first time what takes some firms three attempts.
FAQ
Where should a company start budgeting?
Start by checking whether your accounting analytics can capture actual figures by budget item and responsibility centre. The P&L and cash flow budget formats come next. If the books are incomplete, they are restored first, because the plan needs reliable actuals to be compared with.
How does a P&L budget differ from a cash flow budget?
The P&L budget uses the accrual basis and shows the result for the period. The cash flow budget uses the cash basis and shows the money available on each date. A shipment enters the first on the sale date and the second on the payment date, which is why profitable companies run short of cash.
Is a company in Ukraine required by law to prepare a financial plan?
A private company budgets at its own discretion: Art. 8(5) of Law No. 996-XIV lets it design its own management accounting and reporting. Bookkeeping itself is mandatory (Art. 3(2)), and the budget takes its actuals from it. For state-sector enterprises the annual financial plan is regulated, and Art. 164-2 of the Code on Administrative Offences covers late submission.
Can the budget follow our group's format and currency?
Yes. The company designs its management reporting itself (Art. 8(5) of Law No. 996-XIV), so budget items can follow the group chart of accounts. Statutory books stay in hryvnia (Art. 5), so local accounts are mapped to group items once and the group currency is shown as a separate view at an agreed rate.
How often should budget-vs-actual analysis be done?
Income and expenses are reviewed monthly after the close, cash flows weekly, and critical items daily through the payment calendar. Each quarter the assumptions are revisited and the budget is adjusted.
How much does a financial planning consultation cost?
The cost depends on the format, a one-off consultation or a set-up with a pilot cycle, and on the number of legal entities and responsibility centres, the state of the books and the depth of the budgets. Send a short description of the company and the task, and we will reply with the format, timing and cost.
Related services
Let's discuss your budget
Tell us what you need, a budget from scratch, variance reporting or a payment calendar, and attach last year's statements. We will reply with the format, timing and cost.
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