Bookkeeping and IFRS Accounting Services

Bookkeeping and IFRS Accounting Services 

In most of the EU jurisdictions, the Board of Directorsis responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) asadopted 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 associated colleagues, 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 accountsthat reflects the unique structure and goals of the business, to assist the Board of Directors with the preparation of the accounting records. This enablesareas 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 Bookkeeping

The Nature of the Business

The underlying economic situation is crucial tounderstand 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 a company to make strategic decisions to ensure future success. 

Reporting Currency

Depending on the jurisdiction, Audited Final Accounts can be prepared in any currency, which could be demonstrated as the functionalcurrency of the company, the currency which the client conducts most of his activities in. The Tax Authorities, normally accept the tax returns filed inthe official currency of the country. Commissioner of VAT only acceptsreporting 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 submittedin the EU country for VAT reporting. We can advise you on the best way in which to fulfil statutory requirements. 

Supporting Documentation 

As per the requirements of the Law, for every transaction the client is required to produce supporting documentation in the form of sales invoices, purchase Invoices and bank statements, contracts/agreements etc. 

Quarterly Reporting 

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. We can also provide Feasibility Studies for launching a new business or project. These in turn can be used for obtaining bank loans or for approaching investors for funding. 

Proper bookkeeping 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, strives to fully understand the nature ofthe clients’ business in order to provide exactly what they require. This isdone 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 International Financial Reporting 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

-        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. 

Audit Services 

The audit services we could assist with, are conducted inaccordance with International Standards on Auditing and InternationalFinancial Reporting Standards. These standards require that the Audit is carried out in accordance with ethical requirements and planed and performed in a way to enable to obtain reasonable assurance about whether the financial statements are free from material misstatement.   

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of financial statementsthat give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the financial statements. 

What is involved in the Audit Process? 

The most important element of audit is the audit planning stage. When each particular client is analysed in detail, risks highlighted,areas of potential concern recorded and materiality ascertained.  

To give an example of the audit procedures on Balance Sheet accounts. The major factor that is of upmost importance is bank and cashbalances. Balances at year end have to be correct, basically this means that the balance of your Bank Statement should be reconciled with the balance in yourbooks. 

To comply with this we ensure that the balance is certified in writing by the banks, as well as further certificate completion is being obtained from the banks, where the company holds its accounts in, as atthe close of business at each financial year-end. The completed certificate will form part of the audit evidence to be obtained by the auditors in arrivingat the conclusions on which to base audit opinion on our client’s financial statements. This bank request is in accordance with the International Auditing Practice Statement on Bank Confirmations and is in the standardized formatagreed with the Banking Council. 

Additionally, we require that Directors sign a declaration identifying any indebtedness to or from the company. Trade receivables and trade payables reconciliations are performed by obtaining independent third parties statements of the accounts with the company. Differences are being recognized if any, and further investigated. Related parties’ balances is an area which is always of importance, especially for iffall within the materiality levels established during the audit planning stage. Non-current assets including intangible assets like:goodwill, intellectual property, software, - are also an area, which will need certain audit procedures to be in place.  

The set of audited financial statements is comprised of:  

-        the statementof financial position (Balance Sheet) as at the closure of the financial yearend (in most of the cases 31 December 20XX)

-        the statements of profit or loss and other comprehensive income

-        statement of changes in equity

-        statement of cash flows for the year then ended

-        comparative figures and a summary of significant accounting policies and other explanatory information

-        computationof tax liability, if any and corresponding taxes.

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