In most of the EU jurisdictions, the Board of Directors is responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of the Companies Law, applicable for each jurisdiction, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
With the experienced team of our firm, we could help to ensure that we fully understand the nature of the client’s requirements in order to set up an accounting database and chart of accounts that reflects the unique structure and goals of the business, to assist the Board of Directors with the preparation of the accounting records. This enables areas of potential risk, profitability and concern to be highlighted quickly and easily. In order to do this, we consider all aspects of a business, some of which are outlined below.
Important considerations with regards to accounting/financial reporting:
The underlying economic situation is crucial to understand when making business decisions. In order to be successful a business should be aware of the conditions in which they operate and should be fully aware of the costs they are incurring and the profits they are making. If accounts are kept correctly and up to date then this can assist in the running of the company and enable the company to make strategic decisions to ensure future success.
Depending on the jurisdiction, Audited Financial Statements can be prepared in any currency, which could be demonstrated as the functional currency of the company, the currency which the client conducts most of his activities. The Tax Authorities, normally accept the tax returns filed in the official currency of the country. Commissioner of V.A.T. only accepts reporting the official currency of the country. Therefore, a company that prepares books in US Dollars as the functional currency and is VAT registered must translate its VAT transactions into Euros if the VAT declarations are submitted in the EU country for VAT reporting. We can advise you on the best way in which to fulfill statutory requirements.
Our office, being established in the Republic of Cyprus is utilizing a computerized accounting system (Quick books, Microsoft accounting). As per the requirements of the Companies Law, Cap.113, for every transaction the client is required to produce supporting documentation in the form of Sales Invoices, Purchase Invoices and Bank Statements, contracts/agreements
We can provide any kind of tailored made financial management reports, either monthly or quarterly. For example, we can produce budgets which project financial results into the future based on customer feedback.
Proper bookkeeping/financial reporting can serve as a powerful management tool. It can facilitate the production of timely and accurate management reports that provide decision makers with the data they require and therefore helps businesses become more efficient and improve their profitability as well as cash flow management.
We, therefore, strive to fully understand the nature of the client’s business in order to provide exactly what they require. This is done by setting up an accounting structure that is not only suitable for compliance with the various reporting authorities but also is able to provide valuable business data that will assist the client in running the business.
We can provide the following services:
The Cypriot tax legislation is very specific about the taxation of income and also covers the taxation of employees. Employees are required to pay the personal income tax resulting from their salaries, but will also be withheld certain amounts of money for the social security benefits, the National Health System and pension funds. Companies also must register with the tax authorities in order to be allowed to collect employment taxes. However, payroll administration takes up a lot of time which is why it is best to request the services of professionals who can deal with both HR and payroll management.
Companies, wherever they are based, must pay the salaries of their employees in a timely manner. They must also ensure their income tax and social security compliance in terms of withholding, calculations and reporting. Every country’s employment and tax system is different.
Any organization entering a foreign market faces a number of employment and tax related challenges. By outsourcing your payroll, you can free up your valuable time and resources to concentrate on the important business of running your company while making certain that all obligations and responsibilities are met in a timely and efficient manner in every jurisdiction of operation.
We offer a full range of payroll services to companies that have employees in Cyprus and need assistance in the preparation of their monthly payroll, Permanent Resident Permit for EU Citizens (‘Yellow Slip’), obtaining and maintaining work permits in Cyprus and many other payroll and HR-related tasks.
Cyprus employment legislation
Employers are obliged to inform an employee in writing, within one month after commencement of the employment, of the essential conditions applicable to his/her contract of employment or employment relationship.
Our payroll management services include: