Systematisation and Automation of Business with Grants: Legal and Accounting Compliance

Systematising and automating business processes helps cut operational costs, minimise errors, and speed up task execution. Grant programs support businesses in modernising their operations.

However, securing funding successfully requires a well-defined automation strategy, a solid economic justification, and alignment with grant requirements.

Key Automation Objectives:

Applying for a grant involves meeting strict conditions and requirements. It is essential to assess the business beforehand, identify potential non-compliance issues, and, if economically viable, resolve them. This not only improves funding chances but also strengthens the company’s long-term stability.

To prepare documents that meet international standards and implement necessary changes, experienced specialists are required. Experts in finance, corporate law, and IT help structure reporting, adapt business processes, and navigate legal and tax nuances. Their support minimises funding rejection risks and enhances project transparency.

Identifying core automation tasks is the first step in securing grant funding. The next stage involves finding suitable grant programs that align with business objectives.

LFT specialises in grant funding and business process automation. Our team guides projects at every stage – from business analysis and identifying systematisation goals to preparing all required documentation.

Our Full-Cycle Grant Preparation Process:

1. Identifying automation opportunities
2. Selecting the most relevant grant programs
3. Aligning financial reporting with international standards
4. Developing marketing materials and technical specifications

Additionally, we handle the automation process itself, increasing both funding success rates and overall business efficiency.

Business automation requires a clear strategy and a structured approach. On average, companies that undergo digital transformation improve operational efficiency by 40%, while grant programs can reduce technology implementation costs by up to 70%. Let’s break down the three key stages of this process.

1. Defining Automation Goals and Objectives

This stage involves analysing existing processes and identifying areas for optimisation. For example, companies that implement electronic document management systems reduce internal document processing time by three times, while using chatbots in customer service lowers operator workload by 30–50%.

Clearly defining automation goals not only justifies grant funding but also increases business profitability.

Examples:

• ERP implementation reduces financial losses due to accounting errors by 25%, which is crucial for businesses with high-volume document processing.
• Warehouse logistics automation lowers operational costs by 15–20%. Companies using RFID tags and real-time inventory tracking minimise stock management errors.
• CRM system integration increases repeat purchase rates by 35%, particularly in e-commerce and B2B sectors, where personalised customer interactions boost loyalty.

The more detailed the justification for automation benefits, the higher the chances of securing funding.

2. Researching and Selecting a Grant Program

The EU and other regions offer numerous funding programs, such as Horizon Europe, Digital Europe, and EIC Accelerator. For example, Horizon Europe provides up to €2.5 million for innovative digital projects, while Digital Europe covers up to 50% of new technology implementation costs.

Key factors to consider when choosing a grant:

• Available budget: Some grants cover up to 100% of digitalisation costs. For instance, European Innovation Council (EIC) grants fully fund new technology development and deployment.
• Co-financing requirements: Some programs, like EIC Accelerator, require companies to contribute at least 30% of the grant amount, meaning businesses must be prepared to invest their own funds alongside the grant.
• Reporting obligations: Many grant providers require quarterly or annual reports on fund allocation and project results. Some also mandate independent audits to verify proper fund usage.

Each program has specific conditions, so a thorough review of requirements is crucial to avoid rejection due to non-compliance. A well-chosen grant significantly increases the likelihood of securing funding.

3. Preparing and Submitting the Grant Application

Errors in this stage can result in funding rejection—60% of grant applications fail due to improperly prepared documentation.

A strong grant application must include:

• Clear project justification: Demonstrating how automation will increase productivity by X% or reduce costs by Y%. Concrete figures and expected benefits enhance approval chances.
• Detailed budget breakdown: For example, if a CRM system costs €50,000, the application should explain how funds will be allocated (licensing, development, integration, employee training). Transparency ensures grant providers see the efficiency of fund usage.
• Supporting documents: Financial statements, company details, business plans, and projected outcomes. Preparing all legal and accounting documentation in advance prevents submission delays.

A well-prepared application doubles or even triples the chances of approval. Once a grant is secured, the next phase involves legal compliance and financial reporting for the allocated funds.

Legal support plays a crucial role in the successful execution of a grant-funded automation project. Errors in contracts or failure to comply with regulations can result in funding loss or penalties.

In some cases, restructuring the company’s legal form, changing the jurisdiction of corporate rights ownership, or merging multiple owner companies into an official group may be necessary. These complex processes require a professional approach, in-depth knowledge of corporate law, and consideration of multiple jurisdictions.

Grant Agreement Signing

Once the application is approved, the company signs a contract with the grant provider, defining key obligations. For example, Horizon Europe requires not only expense verification but also public reporting on fund usage. On average, companies spend up to 30% of the implementation time on negotiating terms.

Key aspects of this stage:

• Agreement terms analysis: If funding is provided in installments, it is essential to outline which performance indicators the project must meet at each stage.
• Defining payment conditions: EU grants often include an advance payment (up to 40%) and a final payment based on audit results.
• Risk assessment: Failure to meet deadlines or grant conditions may lead to demands for partial fund repayment.

A detailed contract review helps prevent future issues and minimizes the risk of losing funding.

Procurement and Service Contracts

Grant funds are allocated for purchasing equipment, licenses, software, and paying specialists. However, all expenses must comply with program regulations. For instance, Digital Europe mandates tendering for purchases exceeding €30,000, and failure to adhere to this rule can result in funding revocation.

Key legal steps:

• Drafting and approving supplier contracts: If the grant covers software purchases, the contract must clearly specify licensing conditions.
• Ensuring compliance with tender procedures: Around 20% of EU-funded companies lose grants due to procurement errors.
• Legal supervision of transactions: When purchasing equipment with grant funds, it is critical to follow depreciation and reporting regulations.

Adhering to these rules simplifies expense tracking and eliminates the risk of penalties from grant providers.

Regulatory Compliance

Grant-funded projects are subject to national and international regulations, making it essential to follow all legal requirements. In the European Union, the General Block Exemption Regulation (GBER) governs state aid for businesses. Non-compliance with this regulation can result in full repayment of the grant.

Key compliance requirements:

• Ensuring transparency in fund allocation: Companies must maintain separate accounting for grant funds, reducing financial mismanagement risks.
• Timely submission of legal reports: Over 35% of grant recipients encounter issues due to late document submissions.
• Passing audits: More than 50% of EU-funded projects undergo mandatory verification to confirm proper fund utilization.

Legal support not only mitigates financial risks but also strengthens investor and partner confidence.

Accounting and Financial Reporting

Proper financial management is crucial when handling grant funds. Accounting errors can lead to penalties, funding denial, or repayment demands. According to the European Commission, around 12% of grant recipients face financial sanctions due to incorrect expense tracking.

Tracking grant funds separately:

• Programs like Horizon Europe and EIC Accelerator require grant financing to be accounted for separately from other company revenues.
• On average, companies allocate up to 10% of their finance department’s time to maintaining such records.

Documenting automation expenses:

• If a grant funds ERP system implementation, expenditures on software licenses, expert fees, and integration costs must be properly recorded.
• Companies that accurately track grant expenses are 25% more likely to secure additional funding.

Submitting financial reports:

• EU programs typically require semi-annual interim reports and a final report with an independent audit.
• In 2023, 30% of EU grant recipients received requests for additional financial clarifications, delaying further payments by 2–3 months.

Precise accounting practices not only prevent reporting issues but also build long-term credibility with investors and funding organizations.

We offer a comprehensive approach to business systematization and automation through grant funding. Our team consists of experts in legal, accounting, and financial consulting, ensuring full project support—from selecting the right grant program to submitting financial reports.

What We Offer:

• End-to-end project support – Legal, accounting, and financial services to reduce risks and simplify grant acquisition.
• Expert assistance – We guide clients through every stage, from application preparation to project completion.
• Risk mitigation – Ensuring full compliance with regulatory requirements and protecting business interests.
• Proven expertise – Extensive consulting experience in business support across Europe.

We don’t just consult—we take care of everything, allowing you to focus on growing your business.

• 270+ companies successfully registered and expanded into international markets.
• Financial reporting prepared under IFRS & GAAP, increasing investment attractiveness and easing access to funding.
• Tailored solutions for different industries, considering business specifics and crafting personalized strategies.
• Corporate structure optimization to maximize grant and investment opportunities.
• Comprehensive support at every stage—from process analysis to financial reporting.

If needed, we engage specialists from partner companies and external markets, ensuring expertise in every critical area—from automation and systematization to financial planning and business scaling.

LFT Advisors – your strategic partner in automation, systematization, and international business expansion.