Company Accounting

Some places which attract international clients, require companies to produce and to file annual accounts with a public register, even if they do not have to fill in a tax return or have to pay taxes in that jurisdiction. Examples of these are Gibraltar and Hong Kong.
Because of new rules to prevent money laundering, most countries with an "offshore" type of company have ruled that a company:

  • Needs to produce annual accounts
  • Needs to let the resident agent know where their up-to-date accounting and company records are maintained

In nearly all jurisdictions of this type; the companies not subject to local tax, but they do have to report in some way about company business and company assets.
The intention is that all companies should produce

  • Annual accounts which include a balance sheet and a profit and loss account, showing the distribution of profits to shareholders in the case of a trading companies
  • Annual accounts including a balance sheet and an income and expenditure account, where the company has been incorporated just to hold assets or not for profit

To make this possible; company always needs to keep a record of:

  • All monies received and spent by the company- bank or credit card records
  • Details of all debts that the company owes or is owed
  • Proper records of all assets including stock that the company owns at the end of the financial year
  • Who the goods were bought from and sold to
Further details on our Accountancy services:
Belize Accountancy Services Seychelles Accountancy Services
BVI Accountancy Services

Spain Accountancy Services

Ireland Accountancy Services

UK Accountancy Services

Gibraltar Accountancy Services

USA Accountancy Services

Hong Kong Accountancy Services  

Accountancy Services

Our experience of accountancy and tax & financial planning means we can support you by producing your annual accounts, or maintaining the company's books and records.

Requirements for Companies

  • All companies needs to keep accounting records.
  • Companies incorporated in tax havens now need to have annual accounts kept. These accounts will be confidential and not on public record.

Records to be kept

Proper books, records and annual accounts are needed in all jurisdictions. A company always needs to keep a record of:

  • All monies received and spent by the company
  • Price, location and depreciation records of all assets owned by the company
  • Details of all debts that the company owes or is owed
  • Records of all stock that the company owns at the end of the financial year
  • Records of how stock is valued for accounts
  • A record of all goods bought and sold
  • Who the goods were bought from and sold to

Annual accounts and management accounts

You will need to produce annual accounts. You may also be asked to do other accounts; say every quarter, for the banks or the shareholders or to support a tax return, such as a VAT return

To understand what we need to do

  • What date will you compile accounts to?
  • What assets you are expected to have at the year end. If you are expected to have stock or goods sold on consignment or with some 'sale or return' option, as examples, we need to agree how asset will be valued
  • What accounting format is needed, typically we would wish you to produce a directors' report, profit and loss, balance sheet and notes.
  • What periodic records do you need: quarterly management accounts? reports to support a VAT return? etc.

Accounting Services

The basic price for accounting services is based on the number of the monthly accounting entries (sales and purchase invoices, receipts, report etc).
The price includes all the following services, as needed:

  • Checking and entering of source documents (general ledger)
  • Collection of source documents
  • Fixed Assets accounting
  • Settlements with reporting persons
  • Purchase and sales ledgers
  • Payroll accounting (up to 5 employees, 1 employee = 1 source document)
  • VAT, tax accounting, tax reporting
  • Management reports
  • Submission of declarations to the Tax and Customs Board
  • Consultation
  • Access to web-based accounting software

Initial Work

  • Getting the digital signature for the company from HMRC
  • Appointment as tax agent for the company and for individuals within the company if needed
  • Advice on what needs to be filed with the tax authorities
  • Advice on status for VAT or other schemes related to indirect tax
  • Initial warnings about the details of information needed

Periodic work

You will need to at least produce annual accounts.

  • End of accounting period date
  • What assets you are expected to have at the year end. If you are expected to have stock or goods sold on consignment or with some 'sale or return' option, as examples, we need to agree how asset will be valued
  • What accounting format is needed. Typically we would wish you to produce a directors' report, profit and loss, balance sheet and notes. We will suggest a style for you
  • You need it straight away, because you have to let the tax office know about the start of business and need to know if there is a period of inactivity
  • Companies with non-resident directors, have to register the company for VAT immediately they have any services given to UK clients or trade with any goods in the UK
  • Companies which contract supplies in the UK may be paying VAT unnecessarily, so if you register, it may be returned
  • All UK incorporated companies have to register for taxes, and are chargeable on all income anywhere in the world. They can make an election to be taxed on their foreign income in other places, but it has to be done correctly.
  • You are liable for Corporation Tax before you are obliged to lodge a tax return
  • In practice, you cannot lodge tax returns on paper, and some people estimate that 30% of all company tax returns lodged by non-experts are subject to an inspection process
  • For some companies the members and directors may need to lodge a tax return in the UK.
  • The UK Tax Authority are based in big centralised offices and have very few staff, any error is difficult to correct and you are unlikely to get assistance from tax inspectors.

General processing work

  • Agreeing with the client the format that we will use to register accounting entries. In most cases, a client will have a basic system in place to produce trial balances, but we have the resources to do accounts- even logging individual entries and doing periodic bank reconciliation
  • Agreeing deadlines to send management account information to the client

Quarterly or periodic work

  • Periodic accounts where needed, in order to lodge a VAT return
  • Lodging VAT returns
  • Reconciliation of figures where needed on a quarterly basis
  • letting the client know about deadlines

(I have changed the text a bit below because it should refer to jurisdictions in general)

Annual accounts and submission of Tax Return

  • Compiling and lodging the annual accounts electronically in accordance with accounting rules and legislation
  • Advice on what sort of accounts and details that should be filed for the Registry
  • Compiling and lodging the annual accounts in accordance with the rules about what needs to be lodged