A Company Audit, often referred to as a Statutory Audit or “closing of the books” is a legal requirement by all Cyprus companies and it is essentially an Independent 3rd Party Check by a qualified firm of auditors who, based on their tests, will ascertain if the financial statements prepared (by the accountants of the company or the client) show a True and Fair View of the operations of the Company for a particular year.
At the end of their work the auditors will issue their audit opinion which will be included in the financial statements of the Company and which will state whether these Financial Statements Show a True & Fair View (also called a “Clean Auditors Report”) or it will include all Major Findings identified that compromise the understanding of the reader of the financial statements.
Based on these Audited Financial Statements, the Auditors will then prepare and submit the Company’s Tax Return to the Cyprus Income Tax Office, a Company obligation which takes place once per annum, preferably before the 31 March following the calendar year, at which point all company taxes must be paid to avoid penalties and taxes.
Note: The magnitude of penalties and taxes for Non-Submission of the Company Tax Return (I.R4) depend on whether there is tax payable to the Income Tax Office.
If there is No Tax Payable, then the only penalty will be for Non-Submission of the Return at Euro 100.
If, however there is Tax Payable then the penalty for the Company will be Euro 100 + Interest on the Tax Due + Penalties on the Tax Due, at rates which vary on the specific year.
Therefore, it is important to ensure that any Company Taxes are paid before March following the year end to avoid such penalties and charges.
The Audit Engagement – How Does It Work?
We will liaise with you to obtain all necessary information and clarification needed to perform the audit which usually takes 2 – 3 weeks for completion. Such information contains amongst others:
Upon completion of the audit we will provide you with our comments and constructive advice about the status of your financial statements and express our Audit Opinion as to whether they present a True and Fair View. Thereon, we will prepare and submit your tax return to the Income Tax Office and the Audited Financial Statements to the Cyprus Registrar of Companies.
This is a standardised procedure adopted by all Cyprus Companies which effectively outsource the audit function to an Accredited Audit firm like CYAUSE Audit Services Ltd.
Why Cyprus Companies Require an Audit
Besides the statutory requirement to have an audit and submit the company’s tax return o the Income Tax Office the value of an audit is enormous for the owners of the Company. In a financial world that is constantly evolving and new, complex regulatory requirements increasingly surface into the financial reporting arena the need for financial transparency has never been greater. Where auditing and assurance was once an annual obligation imposed by the authorities, it is now an opportunity for all companies to obtain an independent financial evaluation which will ultimately aid in the long-term viability and profitability of the company.
With our expertise and experience, we aim in excelling in our audit and assurance services, going beyond the regulatory annual audit and looking at the broader picture giving assurance and ultimately independent advice to every single one of our clients.
We look beyond the numbers and review your systems and operations to ensure that they are operating effectively in a controlled environment. Through careful examination of the transaction cycles that make up your business, we can obtain key knowledge of the structure, markets, risks and opportunities that surround your business and ultimately provide you with useful information and advice.
Our audit methodology is adapted to suit the size and nature of your organisation. We always operate with a focus on the specific client needs, and we draw upon our international industry knowledge and experience to offer the best available services. Believing that this quality of service can only be achieved through close cooperation we aim in achieving strong, long-term relationship with our clients.
Our network and affiliate group includes fully licensed firms of auditors. We are therefore able to undertake all types of audit engagements, including:
At the end of each calendar year all companies are required to produced their financial statements for the year which will have to be audited so that the company tax returns will be submitted to the Cyprus Income Tax Office. This is called the “year end reporting” or the “closing of the books”.
Year-end reporting is a standardised procedure and is something that a firm of chartered or certified auditors and accountants can do for you. Following the completion of the book keeping for the year the audit firm will proceed with the completion of the audit for the year and the submission of the company’s tax return to the Cyprus Income Tax office.
The year-end reporting is considered completed once:
Our firm can assist you with all the above as well as with:
Our biggest clients often need more than the standardised services an audit and assurance firm offers. They need frequent taxation and financial advice as well as hands on operational problem-solving solutions. We make sure we offer them such services by adding value to their decision making. This is achieved by actively participating in the board of directors of these companies or by close management consultation. In any case our in-depth knowledge of finance, tax, business and technology solutions ensures our valuable contribution.
Top level consultation is given to our largest clients who require hands on approach on a more frequent basis. These services are offered directly by the director of the firm.
Every Cyprus company director must ensure that the books and records of their company are in good order. This is a legal requirement by the Companies Act 113, and it is usually undertaken by the accounting department of the Company which processes all accounting records such as expenses, purchases, bank statements, agreements and sales invoices on a weekly or monthly basis.
The accounting function of any company is a very challenging task primarily because of the large volume of information that needs to be processed by the company to be compliant with local VAT and Tax Rules.
Typically, this function is outsourced to approved audit and assurance firms like CYAUSE Audit Services Ltd which have to technical knowledge and expertise to meet these requirements and produce the necessary information and deliverables on a timely basis.
Why Outsource the Accounting Function?
No more headaches or loosing deadlines. We are here to help you. Our experienced book keeping staff will ensure to walk you through all the steps and procedures necessary to be on top of the accounting workload, paperwork and taxes.
We have almost automated the book keeping process so that we do not consume your valuable time into automated, simple processes.
The Accounting Engagement – How does it work?
As soon as we sign the engagement letter with the Company we will meet in person several times to discuss accounting needs and filing requirements. We will walk you through what accounting needs we identify and explain to you in detail all statutory requirements and procedures so that your accounting records will be up to date, always.
Amongst others we will explain to you in detail:
Needless to say, that we will assign an account manager to handle your needs directly until you master all of the above.
All you must do is to simply gather the information and provide them to our accounting department for processing.
A typical working relationship with our accounting staff involves lots of telephone calls on a weekly basis, collection and processing of your invoices and bank statements and payment of monthly payroll taxes.
We are proud to say that our relationship with our clients and especially our book keeping clients, is solid and robust as the frequent interaction generates real due care between us.
Routine Accounting Work
Management Account Preparation is the creation of financial statements up to a specified period based on the available books and records of the company so us to assist management make informed decisions about their business.
At a high level, we are often asked by the board of directors or company owners to assist them with future projections and management information that would improve the business performance and bottom line.
Typically, such information is requested in low profitability business periods or in periods where management intends to invest significant amounts of money and detailed future projections and expectations are needed.
Management Account Information includes:
All Cyprus businesses whether limited by shares or run by self-employed persons must prepare and pay monthly or quarterly their payroll taxes: Companies pay at the end of each month the Employers Social Insurance at 11.5% and the employees Social Insurance at 7.8% (deducted from the employees’ gross monthly salary).
On the other hand self-employed persons pay their social insurances on a quarterly basis at a rate determined by the income tax office depending on the services they offer. This is because the Social Insurance Office created various categories of Social Insurance Contributions for each self-employed individual class.
Payment of the Social Insurance Taxes is sometimes lengthy and certainly time consuming especially if there is high staff turnover (frequent rotation of staff) or time based remuneration packages.
Our firm offers a complete, fully managed payroll service, encompassing payroll processing, administration and payment of related taxes/ deductions to the Inland Revenue and the Department of Social Security. We provide practical and affordable solutions for your payroll needs.
Our services include:
Why use CYAUSE Audit Services Ltd payroll services:
By outsourcing your payroll function to our firm, you are guaranteed:
We prepare Business Plans, Feasibility Studies, and Financial Projections for the existing operations of your business or in the context of any business project, business restructuring and expansion of your business.
We plan, set down the critical activities, assign responsibilities, monitor the progress and evaluate the results. We assess projected cash outflows and inflows in order to advice the client with the best possible available financial and operational information.
So what makes a great business plan / feasibility study?
A great business plan or feasibility study must take into consideration the below:
(i.e. considering, Strengths, Weaknesses, Opportunities, Threats)
(i.e. considering Political, Environmental, Social and Technological factors)
If you would like to know more about Business Plans or Feasibility studies e-mail us directly at: kt@cyprusaccountants.com.cy or call me at +357 99 428543 and I would be more than happy to assist you.
Does your business always run out of money? Do you feel that whatever you do you simply cannot generate enough cash to pay your creditors and leave some cash aside? If this is the situation you are facing then most likely your cash flow poor and it has started having a negative impact to your business.
Good news! You are not the only one. This is most common issue we face to date and following our experience with several hundred businesses we have created various strategies and solutions which keep our clients on top of their finances and cash flow needs.
These proven, tailor-made solutions include the use of the simple or complex cash flow workflows created on Microsoft Excel accompanied by invoicing and debt collection software.
They are easy to use and they must be completed by the company owners or finance director at least once per week. These simple processes are so effective and cheap to run that you will thank us every time we meet.
Just drop us an email at kt@cyprusaccountants.com.cy or simply call me directly at +357 99 428543 and we will go through your cash flow needs immediately.
Needless to say, that we will also deploy the most appropriate strategy for your organisation so that your policies and procedures on tenders, offers, invoicing, debt collection, in combination with your accounting department, serve your cash flow in the best possible way.
What will the automation do for you?
Given the large number of fraud and financial crime taking place these days the undertaking of due diligence exercises has become imperative before entering into a business transaction or contract.
By Due Diligence we mean the process of identifying, through investigation, the real information and documentation associated with a physical or legal person or a transaction so that we inform our clients about any inconsistencies and discrepancies identified during our investigation.
For instance, are you in the process of buying part or whole of an entity? Do you wish to sell part of your business? How do you know that the information presented to you is a true and fair representation of the financial position and performance of the business?
CYAUSE AUDIT SERVICES Ltd can help you establish whether the financial information presented to you is as accurate as possible. We perform a detail assessment on inventory, debtors, creditors, asset valuations and investigate potential hidden liabilities through the provision of financial, tax, vat and legal due diligence services. We also provide evidence of the real composition of group structures and their owners who usually used companies of fiduciary services to retain their anonymity.
Therefore before entering into a new legal contract or business arrangement with a physical or legal person you must ensure that you have performed sufficient due diligence on the other party so that you are protected from unforeseen surprises.
If you want to know more simply contact me directly at kt@cyprusaccountants.com.cy or call me directly at +357 99 428543 and I will be more than happy to assist you.
What do we mean by Re-Domiciliation?
Re-Domiciliation is the change of a physical person’s tax residency or citizenship (passport) to a different one.
For instance, a Russian business man can change his tax residency jurisdiction from Russia to Cyprus subject to certain conditions.
Similarly, the Citizenship (passport) of this Russian person can also change to Cyprus following a different application by our firm.
Consequently, besides the obvious legal aspects of changing the country of domicile and tax residency, other major benefits exploited by various businessmen are the tax benefits enjoyed by these individuals who are now taxed based on the Cyprus Tax Regime and not their local tax regimes (in our example Russia) which cost them significantly more in taxes.
Why is Cyprus so Popular?
Cyprus domiciliation services became extremely popular since 2014 a year after the worst economic recession in Cyprus, following the announcement by the government of two very successfully schemes which aimed in attracting investors to the republic. These two schemes (mentioned above) are the Cyprus Citizenship and the Cyprus Residency schemes.
Access to the EU
Obtain access to Europe through the Cyprus Permanent Citizenship or Residency programs via Direct Investment.
Business reasons
Personal Advantages
Living in Cyprus, which offers safe, beautiful, relaxed and easy environment. Amongst other Cyprus offers the following:
If you would like to apply for a Cyprus Tax Residency or Cyprus Passport (Citizenship) just e-mail us at kt@cyprusaccountants.com.cy.
We get frequently asked by our clients on the value of their business and how much they should pitch it for to new shareholders. Typically, some small or medium sized business owners expect from us a value over the phone, assuming that there is simple; one size fits all valuation method and based on that method we should give them their business value!
The Valuation of an Entity, of its shares and/or its assets, is an important and critical piece of information in the context of mergers and acquisitions, restructuring, liquidation, disposals, issue of new share capital, impairment of assets and so on. And because it is so important, the work required in arriving to a final Value is not so simple or straight forward. This is another common misunderstanding we come across with our clients.
The valuation of any business depends on a number of critical factors which should be incorporated into the Valuation Model to arrive to a Quantifiable, Realistic Valuation.
Some Critical Factors Comprise:
CYAUSE AUDIT SERVICES Ltd will help you measure and realise the value of your business, in order to aid you in reaching a knowledgeable decision in any restructuring you wish to undertake.
Our professionals possess deep financial and valuation-related knowledge and industry experience. Combining an in-depth technical knowledge with extensive industry experience both locally and abroad, our team of experts address the specific issues requested by the client and deliver independent, well-supported valuations.