Introduction
The Bulgarian government has introduced significant amendments
to the Accounting Act, which came into effect in August 2024. These
changes primarily focus on sustainability reporting, financial
audit requirements, and the categorization of enterprises, aiming
to streamline reporting obligations and enhance transparency. The
amendments also bring Bulgaria's accounting regulations closer
to EU standards while reducing the administrative burden for
smaller businesses.
Revised Enterprise Categorization
A key update is the adjustment of the criteria used to classify
businesses into micro, small, medium-sized, and large enterprises.
The new thresholds mean that more companies will qualify for
simplified financial reporting, reducing compliance costs. As a
result, approximately 3,700 businesses will shift from small to
micro-enterprises, while 350 will move from medium to small. This
transition will allow these entities to apply more flexible
accounting
