Year-end Accounting in Cyprus: Tidy Books and Tax-Smart Moves
Year-end accounting in Cyprus ensures clean books, accurate filings, and tax-smart outcomes for your business. Learn how to close your financial year efficiently and stay compliant Litigation in Cyprus

Introduction

Year-end accounting in Cyprus is not just a statutory exercise. It’s a practical process that keeps your company compliant, tax-efficient, and ready for audit or financing. When handled correctly, year-end accounting transforms what could be a stressful administrative task into a strategic advantage.

Why Year-end Accounting in Cyprus Matters

When your books are clean, your audit is smoother, your tax filings are accurate, and your management decisions are faster. Year-end accounting in Cyprus is the foundation for every tax return, financial report, and dividend calculation.

The Timeline for Year-end Accounting in Cyprus

• Pre-close (December) – Gather documents, issue invoices, and capture transactions.
• Close (January-February) – Reconcile accounts, adjust accruals, and verify VAT or VIES.
• Post-close (March onward) – Prepare for audit, file TD forms, and manage provisional tax corrections.

Essential Year-end Accounting Checklist

• Bank and EMI reconciliations – Ensure all accounts are fully reconciled at year end.
• Revenue and cut-off – Post invoices on time and defer income belonging to the next year.
• Supplier costs and prepayments – Record all invoices, accruals, and prepayments accurately.
• Fixed assets and depreciation – Track asset movements and update depreciation.
• Payroll and social contributions – Reconcile payroll with Social Insurance and PAYE systems.
• VAT and VIES – Align VAT control accounts with submitted returns.
• Intercompany and financing – Match intercompany balances and document loans properly.
• Legal and corporate – Keep board minutes, dividend resolutions, and statutory registers updated.

How Year-end Accounting Supports Tax Planning

• Provisional tax – Compare actual profits with estimates and adjust payments to avoid penalties.
• Deductibility and documentation – Ensure all expenses are business-related and supported by evidence.
• Dividends and SDC or GHS – Confirm distributable reserves and file SDC or GHS as required.
• VAT checks – Review exemptions and evidence for zero-rate transactions.

Audit Preparation and Reporting

• A well-prepared audit pack speeds up both internal and external reviews:
• PDF trial balance with schedules, bank, VAT, PAYE, and intercompany reconciliations, legal minutes and contracts, and explanatory notes for estimates and provisions.

Common Mistakes in Year-end Accounting

• Posting revenue or expenses in the wrong period.
• Ignoring small accruals that cause VAT mismatches.
• Missing documentation for dividend distributions.
• Failing to reconcile EMIs like Wise, Revolut, or Payoneer.

The 30-Day Close Plan

• Week 1: Collect all missing invoices and statements.
• Week 2: Complete reconciliations and review trial balance.
• Week 3: Adjust VAT, payroll, and intercompany balances.
• Week 4: Finalize the audit pack, minutes, and tax review.

Technology That Makes It Easier

• Cloud accounting with live bank feeds.
• Shared portals for invoice uploads and document sharing.
• Task trackers to assign closing steps.
• Digital filing aligned with the trial balance.

Final Word

Year-end accounting in Cyprus is not about ticking boxes. It’s about protecting value. Clean books, timely tax planning, and transparent reporting save money and strengthen credibility. Trustank Corporate Services Ltd can guide you from bookkeeping to audit preparation.

Contact us

We are Trustank Corporate Services. Our litigation and corporate advisory team assists companies, shareholders, and directors in resolving corporate disputes in Cyprus. Contact us today for professional advice and representation in shareholder disputes, director liability cases, injunctions, and commercial litigation matters.