Accounting Services in Malta

Regulations and Requirements for Bookkeeping in Malta

Under the provisions of the Maltese Companies Act, 1995, companies established in Malta are obligated to maintain proper accounting records. These records must accurately reflect the true and fair position of the company’s affairs, financial performance, and cash flows, providing sufficient and reliable clarification of its activities. Accounting procedures should be conducted at least annually, with the initial set of accounts covering a period of no less than 6 months and no more than 18 months from the company’s incorporation date. Adherence to the accounts submission deadline is essential to meet local statutory requirements.

The accounting records are to be stored at the registered office or another location determined by the company’s directors. If the records are maintained outside Malta, financial statements and returns must be kept at the established Malta office, as they may be required during inspections by authorities, including the VAT Department or Tax Department.

Effective financial and management reporting is crucial for informed business decisions and assists company owners in making sound investment choices. Regulated United Europe, along with its Certified Public Accountants in Malta, provides support in maintaining accounting records and producing detailed financial and management reports tailored to the specific needs of the company. Reporting frequency, ranging from annual to monthly or more frequent intervals, can be customized based on company requirements.

Management reporting includes the issuance of various reports, such as:

1. Balance Sheet/Statement of Financial Position, reflecting the company’s financial position in terms of assets, liabilities, and equity at a specific date.
2. Profit and Loss Account/Income Statement, detailing revenues generated, and expenses incurred over a particular period.
3. Trial Balance at a specific date.
4. History of transactions for all accounts, showing the movement of accounts throughout the year/s.
5. Aged payable and receivable analyses, along with transaction history for these receivables and payables.
6. Inventory Listings to assist in stock-taking procedures.

Issuing these reports, including those from previous periods, allows clients to make year-to-year or period-to-period comparisons. RUE can also assist clients in calculating important ratios, such as working capital ratio and gross profit margin ratio, providing additional value to clients. Certified Public Accountants in Malta from Regulated United Europe assist companies in compiling and submitting all required returns and forms for a Malta-registered company.

Accountants possess a language that enables them to comprehend, analyse, and report on the entirety of business operations and culture. As part of their role, accountants compile, analyse, verify, and report a company’s financial records, including the profit and loss statement and balance sheet. Utilizing their work and the company’s figures, accountants may suggest strategies to enhance profitability, such as cost-saving measures.

Here are some common roles and responsibilities of accountants:

• Ensuring the accuracy and compliance of financial documentation with applicable laws and regulations.
• Generating and maintaining crucial financial reports.
• Preparing tax forms and ensuring timely and accurate tax payments.
• Evaluating financial operations to recommend best practices, identify issues, propose solutions, and enhance organizational efficiency.
• Providing advice on cost-cutting, revenue-boosting, and profit-maximizing strategies.
• Conducting forecasting and risk analysis evaluations.

Companies incorporated in Malta must adhere to the Maltese Companies Act, 1995, which mandates the maintenance of “proper accounting records” concerning receipts, payments, assets, liabilities, and inventory (if applicable). These records should be kept at the registered office or another location decided by the company directors. Proper accounting records are those that allow for accurate disclosure of the financial position and presentation of the profit and loss and balance sheet at any time.

Many companies choose to outsource their accounting function and seek assistance from accounting firms in Malta with knowledge of legal requirements. To maintain the required accounting records, companies typically need documents such as invoices/receipts for fixed assets and expenses, invoices for generated revenue, bank statements, and agreements entered into by the company. Regulated United Europe, a prominent accounting firm in Malta, offers bookkeeping and accounting outsourcing services to ensure compliance with authorities.