Accounting

Accounting Obligations:

Italian companies and Italian branches of foreign enterprises are required to keep the following pieces of accounting books:

  • Journal book
  • Inventory book
  • VAT registers
  • General ledger book
  • Register of fixed assets
  • Goods-in-stock book

Italian Companies are required to maintain copies of all business related documents sent and recieved.

 

Archiving of Accounting Records:

Italian companies and Italian branches must keep the accounting books and related accounting documents for a period of 10 years.

 

Accounting functions:

It is possible to have the accounting function for Italian companies and Italian branches outsourced in another country yet the accounting functions have to comply with Italian Law. On request accounting records must be available and auditable in Italy.

It is possible to have the accounting function for Italian companies and Italian branches outsourced yet hard copies must be kept in Italy including annual printouts of accounting books and documents be shipped to Italy regularly.

 

Statutory Financial Statements:

Italian companies are required to draw up annual Startory Financial Statements including:

  • The Profit & Loss Account
  • The Assets & Liabilities Account
  • The Cash Flow Statement
  • Explanatory Notes

For Smaller Companies & Micro Companies there are simplified formats of Statutory Financial Statements.

Please note that there are deadlines for drawing up Statutory Financial Statements.

 

For more information regarding Accounting in Milan, refer to the PricewaterhouseCoopers Report, ‘What About Italy?’ ‘Chapter 12. Accounting and tax compliance obligations’. Click here to download the Report.

For more information regarding Accounting in Milan, refer to the Deloitte Report, ‘Taxation and Investment in Italy’. Click here to download the Report.