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Accounting Issues

Do you need an accountant straight away or not?

Yes!!! As soon as you decide to create a business the next thing you need to do is to meet up with a professional audit and assurance firm.

Usually professional accounting and auditing firms will not charge you for the initial consultation and will provide you with valuable information about how to keep your accounting records in good order and explain to you how the Cyprus corporate and tax system works.

They will also provide you with the information and tools to assess your profitability and cash flow which are essential in today’s competitive environment.


Do you really need an accountant straight away?

It depends from the volume of paperwork involved and most importantly if you have started invoicing clients. If you have a handful of expense invoices but have not started raising sales invoices yet then probably you may get away from it, this off course depends on the operational set up.

The raising of sales invoices as well as EU acquisition of goods and services triggers the VAT compulsory obligation for registration something that a reputable firm of Chartered Accountants or tax experts should handle due to the complexity of the VAT area.

Having employees and payroll transactions certainly requires an experience accounting firm to handle them as soon as they become apparent as the company and the employees must become registered to the Social Insurance Office the soonest possible.

Therefore, having a team of experienced accountants by your side from the early days of your organisation is a necessity which will safeguard you from financial, compliance and tax adventures.


What do accountants need from you?

Your accountant needs to know exactly, inside out, your operations, plans and business model. Once this is established they will need on a monthly or quarterly basis (subject to the volume, complexity, needs of your business the below documentation:

Records to be provided to accountants:

  • Sales Invoices
  • Purchases Invoices
  • Legal Agreements
  • Bank Statements
  • Cheque Stabs
  • Suppliers Statements
  • Any information or documentation you consider necessary for the accounts of the company.

How often you must provide your accountants with books and records?

How often you provide your records to your accountant depends on numerous factors however as most Cyprus companies are VAT registered and the VAT returns in Cyprus are prepared and submitted on a quarterly basis the latest you can provide your records to your accountants is every three months. Having said this if you could provide them with all the information monthly is even better as it would mean that your accounting records would be up to date at all times.

 

Factors affecting the frequency of records to the accountants:

  • VAT Return Preparation which is done on a quarterly basis
  • VIES Obligation which is performed on a quarterly basis
  • Business and Operational Needs
  • Payroll Preparation and Payroll Taxes payments which take place monthly
 

Typically, monthly or quarterly provision of accounting records would suffice.