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Restoring accounting records in Moldova: what to do if accounting was not maintained or was maintained with errors

When accounting has not been maintained for a long time, transactions were recorded only partially, or reports were submitted with errors, the problem almost always seems bigger than it actually is. The longer a business postpones putting things in order, the higher the likelihood of additional tax assessments, penalties, disputes regarding settlements, and management errors within the company itself.

According to Law No. 287/2017 “On Accounting and Financial Reporting”, accounting in Moldova must be maintained continuously, based on primary documents, with all business transactions properly recorded and followed by the preparation of financial statements. Restoring accounting records is a full legal and financial process aimed at bringing the business into compliance with this legislation.

This is especially relevant in three typical situations: if accounting records were not maintained at all, if they were maintained formally and with significant errors, or if the company failed to submit mandatory tax and financial reports. In all cases, the objective is the same: restore the documentary base, recreate the real picture of operations, correct accounting data, recalculate taxes, and bring reporting into proper condition.

Where accounting restoration begins

Diagnosis: understanding the scale of the problem

The first step is diagnosis. It is necessary to understand for which period accounting records are missing or distorted, what documents have been preserved, which taxes may potentially be affected, whether there are cash transactions, bank movements, debts to suppliers, employees, and the budget. Without this picture, it is impossible to properly structure the restoration process. Often, it is precisely at this stage that it becomes clear that some operations were recorded, but the logic of document flow was violated, supporting documents are missing, or certain tax obligations were not closed.

Restoration of primary documents

Law No. 287/2017 requires accounting records to be based on primary documents confirming business transactions. This means that restoration begins specifically with the documentary base: contracts, acts, invoices, bank statements, cash documents, HR documents, payroll calculations, tax invoices, and other supporting documents for transactions.

If some documents have been lost, they must be restored through counterparties, banks, internal archives, and electronic systems. Until the documentary foundation is restored, accounting remains vulnerable – any figures in the records are weakly protected from the perspective of a tax audit.

Why it is not enough to simply submit reports retroactively

One of the most common mistakes is attempting to quickly solve the problem only by submitting missed declarations. Formally, this may create the appearance that the situation has been corrected, but the essence of the problem remains. Tax reporting must rely on accurate accounting and tax data. If transactions, balances, settlements with counterparties, taxes, salaries, and VAT are not restored first, the submitted declarations may formalize already incorrect figures – and later both the accounting records and previously submitted reports will have to be corrected.

The correct order is always the opposite:

  1. Analysis and restoration of primary data
  2. Reconciliation of settlements with counterparties, taxes, and salaries
  3. Preparation and submission of reports

This approach reduces the risk of duplicate work and lowers the likelihood of new errors. This is especially important in companies where several accountants changed during one period or where some documents were prepared improperly.

How accounting errors are corrected

The National Accounting Standard “Accounting policies, changes in accounting estimates, errors, and subsequent events” directly regulates the procedure for selecting and applying accounting policies, changing estimates, and correcting errors. The standard is developed based on EU Directives and IFRS (IAS) 8 and establishes how errors must be corrected and how such corrections should be reflected in accounting records and financial statements. This means that errors can and should be corrected systematically, rather than through manual adjustments without logic or documentary justification.

What practical error correction consists of

In practice, correcting errors almost always includes several layers of work:

  • Determining the period of the error – what it affected: income, expenses, inventory balances, VAT settlements, salaries, liabilities, depreciation, cash operations, profit tax calculation.
  • Preparing corrective accounting entries – with restoration of the cause-and-effect relationship between documents, postings, and reporting.
  • Recalculating tax consequences – and assessing the need to amend previously submitted declarations and financial statements.

The older the error, the more important it becomes not simply to correct a figure, but to fully restore the logic: document – accounting entry – report.

What to do if reports were not submitted

If a company failed to submit tax reports, action must be taken without delay. The Tax Code of the Republic of Moldova (Article 188) provides taxpayers with the right to submit corrected tax reports if previously submitted reports contained errors or omissions. This right applies both to cases where reports were submitted with errors and to situations where, after accounting restoration, it becomes clear that previous indicators need to be changed.

Procedure in the case of complete absence of reporting

If reports were not submitted at all, the algorithm is as follows:

  1. Determine the complete list of missed forms and periods
  2. Restore accounting data for each period
  3. Prepare and submit overdue reports

In some cases, it will be necessary to submit not only tax forms but also financial statements. Financial reports are submitted in accordance with Law No. 287/2017 and NAS “Presentation of Financial Statements”, while the forms depend on the category of the enterprise. The task during restoration is to close the entire set of mandatory reports that should have been submitted for the relevant periods.

Why inventory is a mandatory part of accounting restoration

When accounting was not maintained or was maintained with errors, it is not enough to rely only on documents. It is necessary to confirm what actually exists within the company at the moment of restoration: goods, raw materials, fixed assets, cash, receivables, and payables. For this purpose, an inventory count is conducted.

In Moldova, the inventory procedure is regulated by Order of the Ministry of Finance No. 60/2012 approving the Inventory Regulation. The manager is obliged to issue an order for conducting the inventory and appoint a commission. It is through inventory that the company obtains a starting point for restoring balances and comparing actual assets with accounting data.

This is especially important for companies engaged in trade, warehousing, manufacturing, cash operations, or dealing with large amounts of tangible assets. Without inventory, accounting restoration may remain merely formal: documents will be collected, accounting entries prepared, but the actual picture of assets and liabilities will remain unverified – creating the risk of further distortions in future periods.
We help restore accounting records, organize documentation, recalculate taxes, and submit correct reporting in accordance with the legislation of the Republic of Moldova. We build an effective accounting system to help avoid future errors and claims from tax authorities.

Who is responsible for accounting disorder

Many managers believe that only the accountant is responsible for accounting problems. However, Moldovan legislation follows a different logic: responsibility for organizing accounting lies with the company’s management. Law No. 287/2017 establishes the obligation of the entity to organize accounting and ensure that it is maintained in accordance with established requirements. Therefore, changing the accountant alone does not remove risks from the director or owner – if accounting has been neglected, the company itself will have to correct the consequences.

For this reason, accounting restoration should be viewed as a management project. It is important to restore control: understand what obligations to the budget already exist, which reports require correction, where there are risks related to VAT, profit tax, salaries – and what processes within the company allowed this situation to arise. If the causes are not eliminated, chaos will return even after restoration.

How to properly organize the restoration process: step-by-step plan

In practice, the work is structured in the following sequence:

  1. Collection and systematization of primary documents – contracts, acts, invoices, statements, cash documents, HR materials
  2. Inventory and reconciliation of balances – confirmation of the actual existence of assets and liabilities
  3. Restoration of accounting records by periods – preparation of correct accounting entries based on primary documents
  4. Recalculation of taxes – VAT, profit tax, income tax, payroll contributions
  5. Preparation of corrections and submission of missed or corrected reports – in accordance with the requirements of the Tax Code and Law No. 287/2017

After this, it is mandatory to establish ongoing regular accounting: assign responsible persons, organize document flow, control deadlines, ensure document storage, and establish procedures for preparing reports. Otherwise, restoration will become only a temporary solution.

Conclusion

If accounting records were not maintained, were maintained partially, or contain errors – delaying the solution is not an option. The law requires continuous accounting based on primary documents, using national accounting standards and with mandatory submission of financial and tax reporting.

Errors can be corrected, reports can be amended, and accounting can be restored. However, this must be done consistently and professionally: from documents and inventory to accounting entries, from accounting entries to taxes, from taxes to reporting. The earlier a company begins this process, the lower the risk of accumulating penalties, disputed amounts, and managerial chaos.
2026-05-29 14:00