Accounting Firm Malta

Tips and Requirements for Successfully Managing Your Business Accounting

As an entrepreneur, you must be organized and pay attention to every detail. To be able to accomplish your long-term objectives, you must have an action plan. Additionally, you need to understand how to effectively promote to your target audience. Finally, in order to make the choices that are most appropriate for your position, it’s critical to keep track of your finances. Keep ALL of your receipts and invoices in order to accomplish this. You’ll get a complete view of your financial status from these.

Accounting firms in Malta can help grow your business further, we offer our clients with a wide range of services, including accounting services, Tax and Audit services. Our team will be able to guide you on the whole process from A to Z based on the type of company you want to manage. We are able to provide advice and or takeover your accounting department to help you run your business even smoother. Malta is home to a whole range of companies given its reduced beneficial tax rates and the all year round beautiful weather.

A4 Services is based in Malta and is part of an international association (BOKS) which has instant access of resources to provide the company with a vast range of professional services.

This accounting firm is a result of a group of individuals from different background forming together to provide financial services to our clients both in a local and international scale. The firm was incorporated in 2021 following a succession application with BOKS International.

BOKS International is a Top 15 global alliance of expert firms providing high-quality professional services and advice. With a rapidly growing global presence made up of accountancy and law firms worldwide, our cross-border service offering facilitates the international operations of businesses of all sizes and ambition, whatever their needs.

Supporting firm growth and development, we are the global alliance of choice offering clients fast and reliable access to quality-assured accounting and legal professionals across the globe.

Our team of certified public accountants and auditors are at your service to keep your business and submissions up to date.

Continue reading to learn our advice on how to successfully handle your accounting efficiently to win additional time to run a company.

1- Sort your expenses by category

Collect all the receipts of the company and place them in different envelopes or in a compartmentalized binder. Also, since your expenses may not all be fully deductible, find a way to categorize items by deductibility. You could write a note or put a special stamp by category (100% deductible / partially deductible / non-deductible). In terms of specific Tax Advice, you should consult with our team of certified specialists were we can assist in a more detailed manner.

2- Keep up with the evolution of your sales

If you have an accounting software implemented to aid the company, you probably already know the evolution of your sales. You can also pull out a cash flow statement allowing you to know your profitability in the short term. In the event that you are not profitable, you could consider different solutions:

• Review your prices. Have you set the right price for your services? If you have doubts, try this magic formula to calculate your hourly rate:
  Hourly rate = (desired annual salary + annual taxes + expenses + holidays and statutory holidays) / Number of hours worked
• Review your marketing strategy: are you targeting the right niche? Do you have good marketing tactics and strategies in place to target your potential customers?
• Look at your expenses: are they too high? Where could you save money?
• Look at your service offer: is it comprehensive enough?

3- Establish a billing method

As an entrepreneur, you most likely have to charge your customers. It is therefore important that you:

• Send professional and personalised invoices that include all essential elements to make them effective
• Keep a record of your invoices

4- Don’t forget to do your bank reconciliations

Collect all bank information and perform regular bank reconciliations. Many entrepreneurs are tempted to neglect this part. Yet bank reconciliation (or account reconciliation) is important if you want to get a fair picture of your financial health. It can happen that you have figures in your accounts that are not registered on your bank statements and vice versa. From our accounting services experience, this is one of the largest headache our clients experience to reconcile on their own, fortunately our services in Malta includes these ongoing services with the monthly package.

5- Review your financial statements regularly

When you are starting out, review your financial statements monthly. This way, you can easily gage your financial health. You’ll also be able to verify whether or not you’re sticking to the financial forecasts set in your business plan. When you move from the start-up phase, quarterly financial statements are sufficient.

6- Separate Your Business Bank Account & Personal Bank Account

The last thing a small business owner wants to do is look through their personal account for a single business transaction. The financial health of your company will benefit the most from your level of organization.

You must keep your business earnings and expenses entirely distinct from your personal expenses, even if you are using personal funds for your business.

7- Create a Budget for Meeting Goals & Objectives

One of the first steps in accounting for small business owners should be the creation of a budget. It entails creating expected income and expenses. You can establish a baseline for what you need to work on with the aid of the budget.

8- Consult accounting firms

As an entrepreneur, you must have someone to rely on to make sound financial decisions. Our team of Certified Public Accountants and Auditors can advise you on what steps to take next in your business and what strategies to follow. Your job is to run your business, not to do the accounting – another reason there is a wide range of services in Malta tailored to your requirements to keep everything up to date.

Requirements

Bookkeeping services in Malta

The Maltese Companies Act, 1995 mandates that businesses with Maltese corporate status maintain accurate accounting records that accurately depict the true and fair state of those businesses’ affairs, their financial performance, and their cash flows. The actions of the company should be sufficiently and accurately explained in these accounts. The initial set of accounts may cover a period of not less than six months nor more than eighteen months from the date of the company’s establishment, with the accounting operations at the very least being carried out annually. To meet with local legal requirements, the deadline for account submission must be observed.

Reporting requirements for companies in Malta

The company’s directors are responsible for preparing individual accounts for each accounting period that include the balance sheet as of the last day of the period they refer to, the profit and loss account for that period, the notes to the accounts, and any additional statements that may be necessary.

A4 Services Client Accounting division supports the coordination of statutory audits of businesses as mandated by the Companies Act (as well as other assurance engagements) and the preparation of audited financial statements for submission to the Malta Business Register.

Financial Statements Audit

Every year, limited liability firms must create a set of audited financial statements and submit them to the Malta Business Registry.

The audit of financial accounts must be conducted in conformity with international auditing standards by a qualified individual who is in possession of the necessary permit from the Maltese Accountancy Board.

GAPSME & IFRSs

General Accounting Principles for Small and Medium Entities (GAPSME) must be followed in order for these financial statements to be acceptable. In relation to financial reporting periods beginning on or after January 1, 2016, GAPSME is now the default accounting framework for SMEs, unless a resolution is passed by the Board of Directors stating that International Financial Reporting Standards (‘IFRSs’) as accepted by the EU is to be applied.

This may be the case if the business must adhere to group accounting policies; in other words, if other group firms are preparing financial statements in accordance with IFRSs as adopted by the EU, it may be necessary for the business to do the same.

The new GAPSME framework, which increased eligibility and widened thresholds, replaced the earlier GAPSE structure.

Preparation of financial documents in Malta

In addition to fully adhering to local laws, international standards on auditing, the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and the ethical standards of the accountancy profession in Malta, A4 specializes in providing financial statements audits and assurance services. The expertise developed by the BOKS International network further ensures the delivery of high-quality results.

Submission of the Financial Statements

The approved audited financial statements must be filed with the Registrar of Companies within 10 months plus 42 days of the accounting year end, and they must be approved within 10 months of the accounting year end.

Deadlines for filing tax returns must also be met.

A4 Services Limited is authorised by the Malta Accountancy Board to undertake statutory audits.

Taxation in Malta

A corporation that was incorporated in Malta is regarded as having both a domicile and a residence there, making it subject to global taxation. Maltese tax is applied on income originating in Malta as well as income received in/remitted to Malta by a non-Maltese incorporated firm that is resident in Malta through management and control.

Income tax is levied on businesses at a fixed rate of 35%. There is no business tax system distinct from personal income tax.

Tax consultancy services in Malta

As a top provider of corporate services in Malta, A4 helps customers take advantage of double taxation relief, full imputation, and refundable tax credits in order to minimize their exposure to Maltese taxes.

VAT Returns Submissions

Any person (individual or business) who conducts an economic activity is regarded as a taxable person and is required to register for VAT within 30 days of the activity’s start. Administrative fines will be severe if you don’t register on time. Companies that do not conduct economic activities, such as pure holding companies, are exempt from the requirement to register for VAT.

Payroll services in Malta

Companies that conduct employment activities in Malta must maintain complete records for each employee, including amounts paid as salaries, bonuses, allowances, and any other additions, as well as any deductions mandated by law for income tax and social security contributions (NI), from the date of engagement to the date of termination of employment. It is crucial that legal standards are strictly followed.

Accounting Services in Malta & Gozo from Certified Public Accountants

By providing a wide range of accounting services, Payroll, Tax and Audit & Assurance services in Malta, we can provide our clients the full set of services to ensure that business owners can be released from the obligation of stressful constant deadlines.

It is vital to choose accounting firms that have a reputable establishments based on customer reviews. In addition to this, following constant change in the Malta budget, financial services expertise must be relied upon in order to always keep your business up and running.

Need Assistance? 

Contact us on:

✉ – info@a4.com.mt

☎ – +35677142418 / 27900007

📍 – A4, Triq San Giljan, San Gwann