Accounting Services

Introduction

Every company registered in Gibraltar, or which has assessable income in Gibraltar, is required to make a return of its income under Section 29 of the Gibraltar Income Tax Act 2010. Tax returns must be submitted even if there is no tax liability in respect of the period. Any company that fails to comply with its statutory obligations will be liable to penalties.

Annual accounts must be drawn up either in accordance with the international accounting standards (IAS) or in accordance with section 243 of the Gibraltar Companies Act 2014. These must provide a true and fair view of the company’s assets, liabilities, financial position and profit or loss.

Accounts must be filed on an annual basis. If the filing requirements are not complied with before the end of the relevant period, the company and every officer of the company commits an offence and is liable to pay a fixed penalty.

Sovereign Trust (Gibraltar) Limited will provide comprehensive accountancy services to businesses that will be tailored to their requirements at a very competitive rate. The accounting solutions that we typically provide include:

Bookkeeping Services

Sovereign Trust (Gibraltar) currently manages bookkeeping services for a variety of clients, ranging from micro/small and medium-sized enterprises (SMEs) to large businesses and complex international group structures.

Our bookkeeping services and fees will be based on a client’s business needs and current activity. As a business develops, we will continue to increase our support to match. Our bookkeeping services include the following:

Recording of all business transactions in accordance with the Generally Accepted Accounting Principles (GAAP) and, where required, the International Financial Reporting Standards (IFRS).
All business transactions will include all income and expenses, receipts and payments, and any other adjustments.
Posting of general ledger and other ledgers as necessary.
Reconciliation of bank statements and passing any necessary adjustments.
Accounting reconciliations.
Preparing and generating sales invoices.

Audit Assistance

An audit of financial statements is the objective independent verification of the financial statements. This increases the value and credibility of the financial statements produced by the management.

Sovereign Trust (Gibraltar) works with various local and international audit firms and will assist in matching our clients to an auditor, based on their requirement and budget. We also provide full support during audit by liaising with the auditors, preparing the schedules and confirmation letters for auditors, and attending to auditor questions.

Financial Reporting

A financial statement is a formal record of the financial activities of a business. It shows the financial position (assets, liabilities and shareholders’ equity) and financial performance (profit and loss) of a company.

Financial statements assist management to make decisions in respect of forward planning and helps external partners, such as banks or vendors, in making decisions about the company’s borrowing capacity.

We will provide clients with a complete set of financial statements that includes the following:

Statement of Financial Position (Balance Sheet).
Income statement (Profit and Loss account).
Statement of cash flows.

Management Accounting

Management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.

Maintaining Cash Books

A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.

Tax Returns

A tax return is the form used to report income and file tax returns with the Gibraltar tax authorities. Our services include preparation and filing of tax returns and dealing with any enquiries from the local tax authorities that may arise.

Sovereign Accounting Services

Hiring a dedicated in-house accountant in Gibraltar involves significant obligations and costs related to monthly salary, labour contract fees, annual leave, training costs and overtime costs. Our fixed monthly fees tailored to a client’s specific requirements will be far more cost effective.

Sovereign’s Gibraltar team comprises professionally qualified accountants or trainee accountants with knowledge, expertise and experience across diverse sectors. We can either visit a client’s premises on a weekly or monthly basis to complete the books or clients can remit the supporting documentation to our office and we can provide accounting services remotely.