Bookkeeping: requirements, methods, services

Bookkeeping is the process of recording and processing the company's financial transactions in accordance with the requirements of accounting laws and accounting policies of the organization.

The main task is the preparation of the company’s financial statements, which include:

• balance sheet;
• profit and loss statement;
• statement of changes in equity;
• statement of cash flows.

Accounting statements are used for external and internal analytics, financial decision-making, and reporting to tax and other government agencies.

Bookkeeping involves the following significant steps:

1. Recording financial transactions, including receipt and issuance of cash, sales of goods or services, payment of taxes, and others.
2. Processing financial data, including recording all cash receipts and disbursements, conducting inventories, and evaluating company assets and liabilities.
3. Preparation of financial statements, including balance sheets, income statements, statements of changes in equity, and cash flow statements.
4. Analysis of financial data: conducting economic analyses, assessing the company’s financial stability, identifying financial risks, and developing financial strategies.

Bookkeeping can be done by the company itself or with the help of a bookkeeping service from SPM Real Estate.

Ways of doing bookkeeping

There are several ways to do bookkeeping:

1. The manual is the simplest and oldest method of bookkeeping when all data is recorded manually in the accounting books. This method is suitable for small companies with a small volume of operations.
2. Electronic — a modern way when all data are recorded in the computer with the help of special accounting programs. This method is more convenient and fast, allows you to generate reports quickly, and reduces the likelihood of errors.
3. Cloud-based is a new way of record keeping when all data is stored in cloud storage and is accessible via the Internet. This method is more convenient for companies with several branches or remote work.
4. Outsourcing of accounting is when a company outsources its accounting, that is, to a specialized company, such as SPM Real Estate. This method is more convenient for businesses that do not have an accounting department or do not want to do their bookkeeping.

Basic requirements for bookkeeping

The basic requirements for bookkeeping include:

1. Compliance with applicable laws — Accounting must comply with legal requirements, including the tax and labor codes, accounting and reporting laws, and other relevant regulations.
2. Accuracy and reliability — All financial transactions must be recorded accurately and fairly. Accountants must be accurate in their work to avoid errors and misrepresentations.
3. Systematicity — accounting policies should be systematic and consistent to facilitate the recording and analysis of data.
4. Accounting for all financial transactions — accounting should cover all financial transactions, including revenues, expenses, assets, and liabilities.
5. Retention of all documents — All documents related to financial transactions must be retained and available for inspection.
6. Timeliness — bookkeeping records must be timely completed and available for analysis.
7. Accountability — bookkeeping records should be consolidated into appropriate reports and presented for specific periods for review and analysis.

Accounting Regulations in Cyprus

In Cyprus, accounting is governed by the Accounting and Auditing Law. Some of the primary accounting regulations in Cyprus include the following:

1. All legal entities registered in Cyprus must keep accounting records by Cypriot laws and accounting standards.
2. Organizations must maintain double-entry accounting, meaning each financial transaction must be reflected in at least two accounting documents.
3. Organizations must prepare annual financial statements consisting of a balance sheet, income statement, and statement of changes in equity.
4. Some companies may be required to have their financial statements audited by Cypriot auditing standards.
5. Organizations must retain books of account and other financial documents for at least 6 years.
6. Organizations must file quarterly and annual income tax returns by Cyprus tax law.
7. Organizations can use various bookkeeping forms, including manual or automated accounting systems supporting electronic reporting.

Bookkeeping services

SPM Real Estate bookkeeping services may include the following types of work:

• Organization of accounting by the requirements of the legislation.
• Maintaining accounting registers and preparing financial statements (balance sheet, income statement, statement of changes in capital, etc.).
• Processing and accounting of financial transactions: payment of invoices, issuing invoices, payroll accounting, accounting of cash transactions, etc.
• Prepare tax reports, including quarterly and annual income tax and VAT declarations.
• Consulting on taxation and accounting legislation.
• Preparation of financial reports for internal use, analysis of economic indicators, and making recommendations to improve financial results.
• Preparation and submission of reports to tax authorities and other state bodies.

The specific list of our services may vary depending on the client’s needs and the contract terms. The most important thing for you is to choose a reliable partner with experience in this field and relevant qualifications. Our specialists will help in any matter and individually consider all your wishes, even if they are not included in the list above.

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