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Accurate and timely bookkeeping is the first step in ensuring that companies comply with the Maltese statutory obligations. As a result, the company will be maintained in good standing with the authorities and the company’s officers will not incur penalties for late filing of relevant returns and documents.
Bookkeeping Regulations and Obligations in Malta
Companies incorporated in Malta are required by the Maltese Companies Act, 1995 to keep proper accounting records, which should reflect the true and fair position of the companies’ affairs, its financial performance and cash flows. These accounts should give sufficient and reliable clarification of the company’s activities. The accounting procedures should at least be carried out on an annual basis, whilst the first set of accounts may cover a period of not less than 6 months and not more than 18 months from the incorporation date of the company. Accounts submission deadline must be honoured in order to comply to local statutory requirements.
The accounting records are to be kept at the registered office or any other office as decided by the directors of the company. If the accounting records are kept outside of Malta then financial statements and returns must be maintained at the established Malta office, as these might be required in an inspection by the authorities including the VAT Department or Tax Department.
Timely Financial & Management Reporting
Financial and Management reporting is crucial for making business related decisions, as well as for assisting the owners of the companies to make informed decisions regarding their investment. CSB Group and its Certified Public Accountants in Malta provide support in maintaining the accounting records and compiling detailed financial and management reporting to assist businesses in their decision making. The frequency of reporting (ranging from annual to monthly, and even more frequently) can be tailored to the specific requirements of the company.
Management reporting consists of issuance of various reports including but not limited to:
- Balance Sheet/Statement of Financial Position at any particular date showing the financial position of the company in terms of its assets, liabilities and equity.
- Profit and Loss Account/Income Statement showing the revenues generated and expenses incurred over a particular year/period
- Trial Balance at any particular date
- History of transactions for all accounts showing the history & movement of the respective accounts throughout the year/s
- Aged payable and aged receivable analysis and transaction history of these receivables and payables
- Inventory Listings to assist clients in their stock taking procedures.
The issuance of the above reports including also issuing the reports of previous periods enable the client to compare between one year/period and another and CSB can also assist clients in working out important ratios including working capital ratio, gross profit margin ratio and other ratios to assist and provide more value added to clients.
Our Certified Public Accountants in Malta assist companies with the compilation and submission of all returns and forms that a Malta registered company is required to submit.
Another area where our accountants assist clients, is in the preparation of their sales invoices issued to their own customers. Clients at times do not have their own templates and are unsure of the Maltese specific requirements outlining what a proper invoice should include. CSB Group is always ready to assist and can also assist by issuance of invoices from its accounting systems to ensure invoices include all of the below important data.
A tax invoice issued by a registered person who is not classified as an exempt person should contain the following information:
- Issue date of the invoice
- Sequential invoice number
- Name, address and VAT number of the supplier issuing the invoice
- Name, address and VAT number of the customer
- Quantity and nature of the goods / services being supplied
- Date on which the supply of goods / services was made
- Taxable value, unit price (excluding tax), discounts or rebates
- VAT %/rate applicable
- VAT payable on invoice
- If applicable, name, address and VAT number of the person liable for paying VAT (if the person is a tax representative in another Member State)
- If the invoice is issued under the cash basis and VAT is chargeable when payment is made, the invoice has to mention "Cash accounting"
- If customer is issuing the invoice himself, the invoice has to mention "Self-billing"
- If there is no tax chargeable on the supply of goods/services on the invoice, the relevant provisions of the VAT Act or Council Directive 2006/112/EC must be mentioned on the invoice
- Where the reverse charge mechanism applies and the customer is liable to assess the VAT impact, the invoice has to mention "Reverse charge"
- If the invoice is being issued under the margin scheme for travel agents, the invoice has to mention "Margin scheme - Travel agents"
- If the invoice is being issued under the margin scheme for second-hand goods (including works of art, collectors' items and antiques) the invoice has to mention "Margin scheme - Second-hand goods", "Margin scheme - Works of art" or "Margin scheme - Collector's items and antiques" as applicable
- If the invoice is for the intra-Community supply of a new means of transport, the description of the goods in the invoice has to include specifics as per the definition of "new means of transport" in the VAT Act.
Groups of companies with a Maltese parent company might be required to prepare consolidated financial statements if certain thresholds set by the Maltese Companies Act are exceeded. A consolidation might also sometimes be required for group purposes. Either way, our team of experienced accountants in Malta are able to guide you on the consolidation requirements and workings to ensure this is done in accordance with the relevant accounting standards & all disclosures are included in the audited financial statements.
Maltese subsidiaries belonging to a large group are at times required to also prepare & complete group reporting packages and send them to the head office (HO) for the HO’s review and hence, inclusion in the group consolidation. Our accountants are highly familiar with the group reporting templates and deadlines and are capable of assisting you in the completion and submission of these reports.
At CSB Group, as part of our book-keeping services, our bookkeepers can also design a variety of tools to help our clients monitor their business’ actual performance against budgets and previous periods. We can assist in analysing this data, and identifying trends that could form the basis for future forecasts. In particular, this relates to the Management of Cash, Cashflow Budgets and Cashflow Forecasts.
Bookkeeping cloud-based solutions
CSB Group’s accounting services offer an online cloud-based solution giving their clients added flexibility and mobility benefits. Clients making use of our cloud-based solutions can access the accounting system remotely and securely to view any transaction instantaneously from any device, anywhere and in real time.
Clients who already have an in-house accounting team that can input the invoices, bank transactions and any other journals might prefer this solution and CSB Group may assist such clients by reviewing their accounting to ensure it is in line with Maltese regulations, prepare the VAT Returns and proceed with the audit coordination for the annual Statutory Audit.
On the other hand, a client who needs our qualified accountants to carry out the bookkeeping in a more comprehensive manner would benefit from making use of the cloud-based solution that enables remote access and viewing of day to day transactions. This solution is specifically aimed at allowing our clients to make better and faster decisions by accessing the required financial data anytime, anywhere and on any device.
An online cloud based solution is also available to our clients making use of our highly requested Payroll Services.
Documents Required for Bookkeeping Services in Malta
CSB Group offers bookkeeping services to keep all your company’s/business’s books and records in order to ensure the company/business is in good standing with the respective authorities.
In order to be able to do so, the documents required would consist namely of the following. These would be required from the incorporation date till the end of the accounting reference period/year up until the accounts are being prepared.
- Incoming invoices/receipts for the fixed assets & expenses purchased and/or incurred
- Outgoing invoices for the revenue/sales generated
- Bank statements for the bank transactions taking place
- Statements in relation to any payment providers used by the company/business
- Agreements/Contracts entered into by the company/business
- Minutes/resolutions of directors/shareholders
- Payroll documentation for the employees of the company (unless payroll is being handled by CSB Group)
- VAT Returns (unless the VAT Returns are being handled by CSB Group)
- Updated group structure
- Financial Statements/Management accounts of subsidiaries or entities whose shares are held/partially held by the company
We’ve been using CSB services for four years and they have been a great asset to our business. We’ve been very impressed with their friendliness and responsiveness and with the staff constantly producing quality work in every aspect of their business – from book keeping to tax preparation. We’re glad to have CSB as part of our team.