Many business owners in Georgia first encounter the words “SARAS” and “mandatory audit” with a jolt of anxiety — usually when a deadline is approaching and they are not sure whether it applies to them. The good news is that financial reporting in Georgia follows a clear, size-based logic: the bigger and more economically significant a company is, the heavier its reporting and audit obligations. Smaller entities have genuinely light requirements. This guide explains how companies are classified, what each category must do, who supervises the system, and when reports are due. As the rules and thresholds can change, treat this as an orientation and confirm your specific obligations with your accountant or the supervising body (saras.gov.ge).

The legal framework and SARAS

Financial reporting and audit in Georgia are governed by the Law on Accounting, Reporting and Auditing. The body that oversees the system is the Service for Accounting, Reporting and Auditing Supervision — universally shortened to SARAS (saras.gov.ge). SARAS sets the framework, maintains the reporting portal through which statements are submitted, and supervises auditors. When people talk about “filing with SARAS,” they mean submitting financial statements electronically through this portal by the annual deadline.

How companies are classified: Categories I–IV

The law sorts entities into four categories (I to IV), with the very smallest sometimes treated separately. Classification is based on a company’s size, measured against three indicators: total assets, annual revenue, and average number of employees. Generally, a company falls into a category by meeting at least two of the three thresholds for that band. Category I is the largest, and Category IV the smallest, with obligations scaling accordingly.

Rather than quote exact figures — which are set in the legislation and can be revised — it is more useful to understand the bands qualitatively. The thresholds for assets, revenue and headcount step up from category to category, so a small owner-managed business and a large enterprise sit at opposite ends of the scale and face very different obligations. Always confirm the current numeric thresholds and which category applies to you with your accountant or SARAS (saras.gov.ge).

What each category must do

The defining differences between categories come down to two things: the depth of the financial statements required, and whether an independent audit is mandatory. The table below summarises the general pattern as of 2026. It is indicative — verify the specifics for your category with SARAS or your accountant.

Category	Relative size	Typical reporting depth	Independent audit
Category I	Largest entities	Full financial statements, management report, report on payments to the State	Generally mandatory
Category II	Large entities	Full financial statements plus required reports	Generally mandatory
Category III	Medium / smaller entities	Lighter financial statements	Generally not required (statements signed by a responsible person)
Category IV	Smallest entities	Simplified financial statement	Generally not required unless otherwise provided by law

The headline takeaway: larger Category I and II companies generally must prepare and file audited financial statements, while Category III and IV entities typically face lighter requirements without a mandatory audit. Entities of public interest may carry additional obligations regardless of size. If you are unsure where your company sits, that is exactly the question to put to an accountant before the deadline approaches.

The annual deadline

For entities that must report, the financial statements (and, where required, the audit report and other documents such as a management report and a report on payments to the State) are submitted through the SARAS portal once a year. As of 2026, the deadline is commonly cited as 1 October of the year following the reporting period — so reports for one financial year are due in the autumn of the next. Because this is an annual, once-a-year obligation, it is easy to forget; build it into your calendar and confirm the current date with SARAS (saras.gov.ge).

Why classification matters in practice

Getting your category right is not a box-ticking exercise — it has real cost and timing consequences. A company that wrongly assumes it is exempt may discover, late in the year, that it needs a full audit before the October filing, which means engaging a licensed auditor and allowing weeks of lead time. Conversely, a small company that over-engineers its reporting can spend money it did not need to. As a business grows across the asset, revenue and employee thresholds, it can move up a category, so the classification is worth reviewing periodically rather than assuming last year’s status still holds.

This is also why financial reporting should not be treated as separate from day-to-day bookkeeping. Clean, properly maintained accounts throughout the year are what make the annual SARAS filing — and any audit — straightforward rather than a scramble.

Getting it handled

Financial reporting in Georgia rewards preparation. Knowing your category, keeping your books in order, and engaging an auditor early if you are in Category I or II turns a potentially stressful deadline into a routine annual task. If you would like help determining your category, preparing statements, and meeting the SARAS deadline, our accounting & reporting service can manage the process end to end — and if you are only just starting out, we can also assist with the initial company setup so your structure and records are right from day one.

Disclaimer: This article is general information, not accounting, audit or legal advice. The categories, thresholds and deadlines under Georgia’s Law on Accounting, Reporting and Auditing can change. The descriptions here are indicative as of 2026 — always verify your company’s classification and obligations with a qualified accountant or SARAS (saras.gov.ge) before acting.

Would you rather not work out your SARAS category and prepare financial statements yourself? Our accounting and financial-reporting service in Georgia prepares and files your annual statements and SARAS submission on time.