Bubley Volodymyr: Administrative barriers for entrepreneurs and the state and how to overcome them
Everyone knows that domestic entrepreneurs have to overcome a great number of administrative barriers in the course of their works. One part of this burden is an actual system of the statistical, tax and financial reporting
There are a lot of reports, which are submitted to a large quantity of different state authorities with different periodicity and in different terms. All this leads to unjustified time and money expenditures of the entrepreneur. But the state also bears the same unreasonable expenditures, which ultimately will become again a tax burden for the entrepreneur.
Certain steps were taken at present to remedy the current situation. They are obviously insufficient - the system itself remains cumbersome and tangled and needs radical simplification and reforms.
The main idea: to act according to the principle "simplify everywhere, where it is possible, without any loss of quality". And there are a lot of optimization ways. There is a need for qualitative and quantitative simplification - to minimize the number of the required reports, to reduce the amount of the information provided in the financial reports, to sort out the time-frames.
In the reconsideration process it is worth to apply the principle, which is common to any business process reengineering - to find and to eliminate unused outputs of the process. All unused results, as well as those that could be easily refused, should be eliminated. In simple words, it's worth asking: who are the users of the information submitted? Is this data really necessary in this amount and with this periodicity? It's simple – any information should have its user.
If some data doesn’t have any user, what is the reason of collecting, accumulating and submitting this data? We are confident that a lot of forms and additional lines in the reporting forms will be eliminated.
The next step - elimination of duplication. In this case works another principle of the business process management theory - functions and procedures that overlap in whole or partly should be reorganized. Our company has analyzed the reports and revealed a huge number of indicators that duplicate each other in some ways or could be derived mathematically. And it is really enough to fix the information once - at the source, in the place of its origin.
In our opinion, it is worth to consolidate tax reports. Out of the list of state tax reports the VAT declaration and the income tax declaration should be kept.
More information in the blog of Volodymyr Bubley on UBR: http://blog.ubr.ua/praktika-biznesa/administrativnye-barery-dlia-predprinimatelei-i-gosudarstva-kak-ih-preodolet-12202