Bad Accounting Stories

26 May 2026

The top three recurring cases we fix most often

Over the past year, we’ve seen a lot of strange accounting that is hard to explain with logic.

And since Հաշվապահություն (accounting) translated from ancient Armenian literally means "the pursuit of the beautiful," we decided to look at these cases as art.

While fixing errors left behind by other accountants, we noticed recurring plotlines. Here are the three most frequent genres.

The Winners' Table

3rd place. A passion for beautiful numbers

People in Armenia like to make things look beautiful. If your calculated income tax comes out to 4,732 drams — let's face it, that just doesn't look prestigious.

An accountant with a fine sense of beauty will direct you to pay 5,000 drams. Instead of 18,850 – 20,000 drams.

By the end of the year, overpayments sometimes accumulate into tens of thousands. Never mind that the accountant decided on your behalf to take this money out of circulation and leave it sitting as dead weight in your tax account. It’s all for peace of mind.

The accountant is at peace. And you shouldn't worry either.

2nd place. The Headless Horseman

The founders set up an LLC, they get paid for their work, but there isn't a single employee on the payroll. Not even a director.

Here is what the tax inspector imagines. Somewhere in Yerevan, there is an empty office. A phone lies on the floor, its screen occasionally flashing notifications like "+5,000 USD for services." And there is absolutely no one around.

There is income. But who actually did the work? 🤔

Rumor has it that particularly superstitious inspectors avoid auditing such companies altogether. But that's not for certain.

1st place. Money out of thin air

A sole proprietorship (IE) has been operating for several years. There is profit, tax returns are filed, and taxes are paid. But there are no invoices. Not a single one in 3 years.

Some random people are voluntarily transferring money to the company. Perhaps it's for the businessman's beautiful eyes, or because of a piece of rebar wrapped in a newspaper behind his back. It's a mystery.

We have no answer as to why the bank hasn't blocked the account yet, or why the tax office hasn't knocked on their door.

Maybe they just haven't gotten around to it yet. Or maybe they believe in miracles too 🌈