Accounting & Financial Reporting

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:

• Maintenance of statutory books and records
• Preparation of financial statements in accordance with IFRS/IAS (International Financial Reporting Standards/International Accounting Standards)
• Preparation of management accounting reports
• Preparation of consolidated accounts
• Assistance in setting up computerized accounting systems for clients including training of staff in maintaining proper records and ongoing assistance on a consultancy basis
• Preparation of annual tax computations
• Preparation and submission of provisional tax declarations and payment of taxes
• Preparation, submission and maintenance of VAT, VIES and Intrastat services within Republic of Cyprus
• Preparation of budgets
• Feasibility Studies
• Payroll services including preparation and processing of monthly payroll, management payments of tax and social insurance contributions, submission of periodic tax returns.

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:

• Processing of monthly and weekly payrolls.
• Preparation and submission of tax forms.
• Calculation of all aspects of PAYE, Social Insurance & National Health System.
• Pay slips.
• Electronic payment of salaries to the employee’s bank account.
• Relocation and immigration services.
• Complete confidentiality.