Bookkeeping regulations in Malta
Proper accounting records is of essence to all companies and businesses in Malta. These accounts should provide reliable clarification of the firm’s activities.
Keeping your company in good standing with the Maltese authorities and the company’s officers is important in order to avoid incurring penalties for late filings of relevant returns and documents.
In fact, companies registered in Malta are required by the Maltese Companies Act, 1995, to keep proper accounting records, which would reflect the fair position of the companies’ affairs, its cash flow and its financial performance. Such services can also be provided to self-employed individuals.
The accounting procedures should be carried out on an annual basis, and the first set of accounts should cover a period of not less than 6 months and not more than 18 months from the incorporation date of the company. The accounts submission deadline must always be honoured to comply to local statutory requirements.
Accounting records must be kept at the registered office or any other office chosen by the directors of the company. In case the accounting records are kept outside Malta, the accounting records and returns must still be maintained at the established Malta office. This is because these might be required for inspection by the authorities like the Tax or VAT department.
Financial and Management Reporting
At CCPS Malta we provide a complete accounts function, including book-keeping, with the aim of keeping all your business’ books and records in order.
Financial and management reporting is crucial in assisting business owners to make informed decisions regarding their investment. CCPS Malta can provide the necessary support in maintaining accounting records and compiling detailed financial and management reporting to assist businesses in their decision making. We can tailor the frequency of the reporting (ranging from monthly to annual, and even more frequently if necessary) according to the specific needs of your company.
- There are various reports when it comes to management reporting; these are some that we can offer:
- Trial Balance
- Profit and Loss / Income statement showing revenues generated and also expenses incurred over a particular year or period.
- Statement of Financial position / Balance Sheet at any particular date showing the financial position of the company when it comes to its assets, equity and liabilities.
- Transaction history of all accounts showing the history and movement of the accounts throughout the years
- Inventory Listings that would assist clients in their stock taking procedures
- Aged payable / receivable analysis and transaction history of these same payables and receivables
Thanks to the above reports, including also the issue of reports of previous periods, the client would be able to compare one year or period with another. CCPS Malta can also help the client in working certain ratios: like the gross profit ratio, the working capital ratio and other ratios.
As Certified Public Accountants in Malta we can assist companies, self-employed individuals and business owners with the compilation and submission of all returns and forms that are required.
We can assist clients when it comes to the preparation of sales invoices that a client would issue to his/her own customers. CCPS Malta can issue such invoices from its accounting systems to ensure that all invoices cover the necessary data.
Our bookkeepers can offer a variety of tools to help clients monitor their business’ performance against budgets and previous periods. We can help you analyse data and identify trends so that you can form the basis for future forecasts (relating to Management of Cash, Cashflow Budgets and Cashflow Forecasts)
Our accounting services offer an online cloud-based solution, giving our clients added flexibility and mobility benefits. Thanks to this system, clients would be able to access the accounting system remotely and view transactions from any device.
If you have your own in-house accounting team, this solution can be beneficial and CCPS Malta can help you by reviewing your accounting to ensure that they are in-line with Maltese regulations, whilst also preparing VAT Returns.
Quality Bookkeeping – what documents are required?
- To offer the best bookkeeping service and keep your business in good standing with the authorities, there are a set of documents that we require, including:
- Outgoing invoices for revenue and sales generated
- Incoming invoices and receipts for fixed assets and expenses purchases and/or incurred
- Bank statements of all related bank transactions
- Statements of payment to any payment provider
- All contracts and agreements entered into by the business
- Minutes and resolutions of the directors and shareholders
- Unless payroll is handled by CCPS Malta, all payroll documentation for the employees of the company is required
- VAT Returns (unless they are handled by CCPS Malta)
- Financial statements and management accounts of entities or subsidiaries whose shares are held by the company
ADVISORY ON ACCOUNTING
CCPS Malta’s accounting advisory specialists support companies in getting the right accounting solution in an ever complex accounting environment, where accounting standards are constantly updated by the relevant authorities.
Our accounting advisory services include:
- Adhoc query helpline for Financial Controllers and Finance Directors
- Formal accounting opinions and memoranda
- New standard impact analysis
- Advice around IFRS & GAPSME restatement support
Our team of professionals will also support clients to achieve compliance with accounting standards by advising them how they can establish financial reporting processes in a way that would benefit their company. Such services include:
- Advice on the applicability of the General Accounting Principles for Small and Medium-Sized Entities (GAPSME) and International Financial Reporting Standards (IFRS)
- Support on the accounting impacts of transactions, events or structures like restructuring transactions and M&A (this is done with the assistance of our tax advisors as well)
- Analysis and review of published statements and external financial reporting systems including the preparation of the Accounting Manual
- Advice and assistance on accounting computations in accordance with IFRS
- Statutory Financial Statements Compliance with the applicable reporting framework
- Impact assessment of IFRS requirements and forthcoming accounting change services relating to the adoption of newly effective standards.
CCPS Malta’s accounting advisory team can also support clients when it comes to the preparation of consolidated financial statements by providing the following:
- Analysis and assessment of accounting policy choices
- Support when preparing IFRS financial reporting
- Assessment of accounting and reporting impacts together with the identification of gaps between IFRS and various accounting frameworks
Our dedicated team of specialists will always be there to assist you to make the right accounting decision when it comes to commercial reality, regulatory requirements and reporting objectives.