Accounting and Bookkeeping Services in Malta for Small Businesses and Global Companies

All companies established in Malta are required to maintain accurate and updated accounting records in line with applicable reporting standards and VAT legislation. The two accepted reporting frameworks in Malta are the General Accounting Principles for Small and Medium-Sized Entities (GAPSME) and the International Financial Reporting Standards (IFRS) as adopted by the EU.

Records must be kept for financial periods of 12 months, with the first reporting period typically ranging between 6 and 18 months, depending on the company’s incorporation date and the selected financial year-end. By default, companies in Malta use the calendar year end (31 December). However, businesses may choose an alternative year-end, subject to approval by the Malta Business Registry and based on operational needs, group alignment, or tax efficiency strategies.

At A2CO, we assist clients in changing their financial year end where it makes commercial or fiscal sense, for example, to align with a parent company’s reporting cycle, to reduce administrative workload, or to better match revenue and expense recognition. This can be addressed through a tax advisory service, which is especially valuable for companies preparing for consolidation or undergoing structural changes

Choosing the optimal year-end can also help spread audit and compliance deadlines, thereby reducing pressure on internal resources and potentially lowering costs related to professional services during peak periods. Whether you’re reporting under GAPSME or IFRS, the year-end decision does not alter the applicable framework, but may influence the complexity and timing of reporting tasks, particularly under IFRS, which involves more detailed disclosures.

Our team provides advice, documentation, and end-to-end support for financial year-end changes, ensuring the process is compliant, strategically timed, and formally registered with the relevant authorities.

For businesses unsure about how VAT obligations tie into their accounting function, our VAT experts work hand-in-hand with our bookkeeping team to ensure accurate reporting, timely filings, and full compliance with local legislation, from invoice issuance to quarterly VAT returns. Learn more about our VAT Registration & Compliance services in Malta.

For SMEs established in Malta, GAPSME is the default accounting framework for financial periods starting on or after 1 January 2016, unless the company’s Board resolves to adopt IFRS or the entity no longer qualifies as an SME under the law.

Remaining under GAPSME can be highly beneficial for qualifying entities, it offers a simplified reporting structure, reduces administrative costs, and limits the scope of disclosure requirements, which can be especially valuable for privately held businesses and startups. GAPSME also allows for more streamlined financial statement preparation, making it easier to meet statutory obligations without unnecessary complexity.

However, businesses preparing for external audits, entering regulated industries, or planning for international expansion may benefit from adopting IFRS early on. IFRS offers greater transparency, is recognised across jurisdictions, and may be required by certain investors, financial institutions, or regulatory bodies.

At A2CO, we assess your current and future operational goals to advise on the most suitable framework. Whether you’re looking to minimise compliance burdens through GAPSME or strategically transition to IFRS, our team ensures your accounting function complies with the relevant framework. We assist with the proper classification, recognition, and measurement of transactions, following the core accounting principles set out in Maltese subsidiary legislation and IFRS requirements.

If your business is assessing whether to adopt GAPSME or IFRS, our team can provide tailored guidance based on your financial structure and compliance requirements. GAPSME is typically more straightforward and cost-effective for small and medium-sized enterprises, while IFRS may be necessary for public interest entities or companies preparing for external audits or stock exchange listings.

Our consultancy services also cover:

To qualify as a Small or Medium-sized Entity, your company must meet at least two out of three of the following thresholds at balance sheet date:

Entities are required to reassess their classification annually. A company must exceed or fall below these thresholds for two consecutive financial years before changing its classification status under the law.

Each size classification carries specific financial reporting obligations:

Beyond framework selection and transaction-level compliance, our bookkeeping team ensures that all reporting components are prepared to the statutory standards required by law, ensuring a true and fair view of your company’s financial position. We also offer Audit Coordination services to help you prepare for external audits with minimal disruption to your business.

Our expertise covers GAPSME and IFRS in Malta, as well as similar accounting standards applied in jurisdictions like the UK, ensuring smooth financial management and compliance across borders.

Our bookkeeping team ensures all invoices, agreements, and supporting documents are accurately recorded and fully compliant with current legislation. We work closely with your auditors during the audit coordination process to facilitate smooth and efficient external audits.

A2CO supports companies in maintaining accurate and compliant financial records through a full range of bookkeeping services, including:

At A2CO, we take great care to ensure that invoices, agreements, and supporting documentation are accurately reflected in the accounting records and fully aligned with current legislation. We also understand that many businesses operating in Malta have international connections and obligations. That is why, beyond bookkeeping and compliance, we offer expert advisory services on cross-border tax matters to support your broader business needs.

Transfer Pricing: Helping ensure your intercompany transactions comply with OECD guidelines and Maltese transfer pricing regulations, minimizing risk and optimizing your tax position.

Tax Treaties and Double Taxation Relief: Guiding you through Malta’s extensive network of double taxation treaties to maximize treaty benefits and avoid unnecessary tax burdens.

International VAT Compliance: Providing comprehensive VAT support for cross-border operations, from VAT registration in multiple jurisdictions to managing intra-community trade and reclaiming foreign VAT.

These services complement our core accounting and bookkeeping functions, delivering a fully integrated approach to managing your business’s financial and tax obligations across borders.