The BVI is among the top destinations for business incorporation for offshore purposes due to its favorable business environment. There are detailed accounting regulations that require businesses operating in the BVI to conform to all local laws and regulations.
One of the reasons why the BVI is such an attractive hub for international companies is that it has business friendly environment. This involves complying with the accounting requirements of the BVI. This article elaborates on these requirements, the regulatory framework of such requirements, the challenges of BVI accounting by the firms themselves and the benefits of FastLane’s expert accounting services.
What you’ll learn about
BVI’s Accounting Regulations
The BVI has laws in place to ensure transparency and accountability in BVI companies. The aim of such regulations is to shield investors and creditors, to encourage openness and account ability in the Virgin Islands.
Requirement to keep proper accounting records: Every BVI company must maintain accurate accounting records of its transactions adequate enough to reflect its financial position and to enable a reasonable judgment to be made. They should be kept for a period of five years.
Requirement to prepare annual financial statements: All BVI companies must have to prepare annual financial statements, which give a true and fair view of their affairs.
Requirement to file an annual return: Each BVI company must file an annual return with its registered agent within nine months following the company’s financial year-end. It must also include information about the directors of the company, shareholders, and financial statements.
Only regulated entities such as banks, insurance companies, and investment funds are required to undergo an audit of their financial statement in the BVI which does not have any such general law. If you want to delve further into this topic, check out one of our articles about The Legal Framework for Financial Reporting in BVI.
The Challenges of DIY BVI Accounting
However, there are some challenges that businesses that opt to do their own BVI accounting and annual return might encounter. These include:
- Keeping up with the latest regulations. Businesses must keep abreast of the changing accounting regulation of the BVI, in order to observe the latest changes for compliance. However, these regulations can be complex making the implementation of such laws challenging.
- Maintaining accurate financial records. BVI accounting rules require businesses to maintain true and correct financial records. However, this can be quite difficult, as businesses must know the accounting principles and procedures pretty well.
- Preparing and filing annual returns. Businesses must prepare and file annual returns with the registered agent. This can be a time-consuming and labor-intensive process.
If you are considering doing your own BVI accounting and annual return, it is important to carefully consider the challenges involved. If you do not have the in-house expertise or resources to manage your accounting in-house, it may be best to outsource your accounting to a professional accounting firm.
The annual return template includes a basic income statement and a balance sheet, and neither of these documents needs to undergo an audit. The income statement provides details about a company’s revenue, expenses, gains, and losses over a defined period. Meanwhile, the balance sheet showcases a company’s assets, liabilities, and shareholders’ equity.
The Solution: FastLane – Expert Accounting Services for Your BVI Company
Simplify your BVI accounting with FastLane. Our team of experts can offer you accounting support in all aspect from bookkeeping to annual return filing and financial statement preparation. We are familiar with the local regulations and we can ensure your financial records are accurate, current, and compliant. Talk to us to find out how we can simplify for you the BVI accounting.
The Benefits of Professional BVI Accounting
Choose Professional BVI accounting services from FastLane, and the benefits are numerous.In fact, your company is in financially good condition. It also helps in reducing opportunities of compliance problems and penalties.
In addition, you can maximize the success of your firm through professionalized accounting services. With accurate financial data, it is possible to base your business operation on data driven decisions which are very essential to growth of the entity. We specialize on BVI account services with a view of ensure compliance and providing you with valuable financial insights that would aid in creating strategies favoring your organization.
Our vast knowledge and skills in the BVI accounting field ensure that the business will always keep within the law. Accounting is taken care of by our specialist team that offers you book- keeping, financial statutory and other services.
When you outsource your accounting to FastLane, you will free up time resource which could be used to expand your business more successfully. Don’t let accounting complexity hinder your business. Call or email us now and we will handle all you accounting needs for any BVI Company.