08.02.2022
In today’s business world, audits of financial statements have become increasingly important especially due to the fact that there is more scrutiny in place. In Malta, audited financial statements are a statutory and regulatory requirement, and must be approved by the Company’s directors and filed with the Registrar of Companies within the Malta Financial Services Authority within 42 days from the end of the period for submitting annual financial statements to the general meeting. To this, Maltese companies are required to appoint independent auditors registered with the local Accountancy Board.
The financial statements are a snapshot of a company’s financial position as at a given date, making them an important decision-making tool. Financial statements also provide various business trends, for example, the rate at which you are collecting receivables, the rate at which you are paying creditors and any cash flow problems.
Additionally, businesses may require credit facilities as a part of their strategy to remain financially viable. A firm seeking to obtain a credit facility will always be required to present the latest financial statements to the bank as they provide a very good indication of the risk involved.
Monitoring the financial health of your company can make the difference between failure and success and this can be achieved through up-to-date book-keeping which ultimately feeds the management accounts and financial statements with complete and accurate financial information.
For further information about bookkeeping and management accounts do not hesitate to contact our Director, Mr Conrad Meli on cmeli@accoutningservices.com.mt.
