ENGLISH SPEAKING ACCOUNTING AUDIT AND ADVISORY FIRM

Accounting Services in France for English Speakers

English Speaking Accountant in France

Accounting services provided in English for individuals and businesses in France

At L2A ADVISORY, we understand the challenges faced by English-speaking individuals and businesses navigating the complex accounting and tax landscape in France. We pride ourselves on providing top-quality services reminiscent of big four firms, combined with the personalized and agile approach of a smaller firm. Our services are tailored to meet the unique needs of our clients, ensuring clarity, compliance, and convenience in managing financial affairs in a foreign country.

Our firm offers a comprehensive range of accounting services delivered entirely in English to cater to the expatriate community and international businesses operating in France. Our services include but are not limited to bookkeeping, annual financial statements preparation, tax compliance, and advisory. By providing these services in English, we ensure that language barriers do not impede your understanding of your financial standing and obligations in France.

Assistance with financial reporting and tax compliance in English

Navigating the French tax system can be daunting due to its complexity and the frequent changes in tax regulations. L2A ADVISORY specializes in offering assistance with financial reporting and tax compliance, all communicated in clear English. Whether it’s preparing your tax returns, ensuring accurate financial reporting, preparing your annual financial statements or advising on tax optimization strategies, our team ensures that you are fully compliant with French laws while maximizing your financial efficiency. Our approach not only simplifies the process but also equips you with the knowledge to make informed decisions about your financial matters in France.

 

French CPA Services

Services provided by Certified Public Accountants (CPAs) in France

In France, Certified Public Accountants (CPAs) are crucial professionals in the financial landscape, governed by stringent regulations to ensure the highest standards of practice. To legally operate, CPAs must be registered with the “Ordre des experts-comptables,” the official board that oversees the accounting profession in France. This registration not only affirms their expertise and reliability but also mandates them to carry professional insurance, enhancing the trust and security for their clients. Furthermore, CPAs in France are required to follow a strict code of conduct, which includes maintaining mandatory procedures, securing a letter of engagement before providing services, and adhering to an ethical code that ensures integrity and transparency in all financial dealings.

It is important for clients to be vigilant and confirm the credentials of their accounting service providers. Some external accountants may claim to be CPAs without proper registration, acting outside of legal bounds. Engaging with such individuals can lead to significant legal and financial repercussions. Always verify that your accountant is duly registered with the “Ordre des experts-comptables” to safeguard your financial interests and ensure compliance with French regulations.

Services offered by CPA in France

CPA in France will provide a variety of services such as : bookkeeping, accounting, reporting, tax compliance, company incorporations, tax planning, business modeling and business plan. 

Bookkeeping and accounting

CPA are the only professional that can perform bookkeeping and accounting tasks for companies that want to externalize this tasks. Any other company or service provider that would offer this kind of services whilst not being a proper registered CPA would be in an illegal position, committing an infraction subject to a 1 year jail time and 15 000€ penalty.

Reporting and FP&A

CPA are well recognized in the finance spectrum to perform reporting and FP&A missions. Actually it is often the final goal of bookkeeping which is not only to register transactions but analyze them and report financial performance to the management.

Tax Compliance

CPA in France are the go to profession regarding Tax Compliance matters. Whether it concerns personal or corporate tax, CPA are the one actually performing the tax compliance and filling out the tax forms. Of course CPA also do work with tax lawyers in case of complex situation.

CPA can offer some legal services such company incorporations and annual legal documentation preparation for approving accounts. CPA are not lawyers but they usually handle significant corporate secretary work which lead to saving compared to lawyers fees.

Business Plan and business modeling

Wether it is to obtain a financing of to forecast and assess the feasibility of a project, CPA will be key stakeholder in the preparation of business and plan and business modeling. It is very common that banks require a business plan stamped by a CPA to finance a project.

Expertise in French accounting standards and regulation

Navigating the complexities of French accounting standards and regulations is crucial for any business operating in France. Working with a Certified Public Accountant (CPA) is the best way to ensure that your business adheres to these rigorous standards, thereby safeguarding its financial integrity and compliance.

The cornerstone of French accounting standards is the “Plan Comptable Général” (PCG), which is the equivalent of the Generally Accepted Accounting Principles (GAAP) in France. The PCG sets out the detailed accounting rules that govern the preparation and presentation of financial statements, ensuring that they provide a clear, accurate, and consistent overview of a business’s financial position.

By partnering with a CPA who has in-depth knowledge of the PCG and other regulatory requirements, businesses can ensure that their accounting practices are not only compliant but also optimized for financial success in the French market. CPAs are trained to interpret and apply these standards effectively, taking into account the latest updates and amendments, which are critical in the dynamic landscape of financial regulation.

Furthermore, CPAs provide invaluable guidance on how these standards impact your specific business activities. Whether it involves routine financial reporting, complex transactions, or strategic planning, a CPA ensures that all financial practices meet the required standards, thus mitigating risks related to non-compliance.

In summary, engaging with a CPA offers businesses a strategic advantage in compliance and financial management. This professional partnership guarantees that your financial operations are aligned with the “Plan Comptable Général,” facilitating smooth business operations and fostering trust among stakeholders.

Accounting and tax services offered by CPAs in France

French CPAs offer various Accounting and Tax services.  It is the core of their expertise. In France, compared for instance to the US, Accounting and Tax are much more linked. Tax accounting by itself does not actually exists in France. One of the goal of accounting is actually to produce a first basis for tax preparation.

That’s why CPA’s in France are the best in class professionals to perform bookkeeping, Financial statement preparation and tax computation and compliance duties.

Guidance on financial matters and tax planning in compliance with French laws

For foreign investors and companies that are willing to launch and operate a business in France, it is critical to obtain sufficient guidance on financial matters and tax planning from a french well established professional.  

Tax systems varies from one country to another so even if you have some expertise in your local market, we strongly advise to seek for guidance with french expert, especially since French Tax Administration is sometime very creative.  VAT for instance was invented by the French Tax Administration in the mid 20th century. The tax rules are currently evolving especially with annual tax law that can really affect significantly your business.  At L2A ADVISORY we provide expertise on the current tax law but also guidance on what the government is preparing based on our information and the potential impact on your projects.

French GAAP and Conversion

Guidance on French Generally Accepted Accounting Principles (GAAP) and their conversion

Complying to French Accounting Standards: A Business Imperative

For companies operating in France, it is crucial to meticulously follow French accounting standards, not only to ensure legal compliance but also to maintain the integrity and transparency of financial reporting. Recording transactions according to the French Generally Accepted Accounting Principles (GAAPs), encapsulated in the “Plan Comptable Général” (PCG), is fundamental. These principles provide the framework for accounting consistency, accuracy, and fairness in financial statements.

Recording Transactions and Preparing Financial Statements

Every financial transaction must be recorded in line with the PCG to accurately reflect the company’s economic activities and maintain transparent reporting. As the fiscal year concludes, companies are required to prepare comprehensive financial statements. These include the balance sheet, which outlines the company’s assets and liabilities; the profit & loss statement, which shows the company’s operational results; and detailed notes to the financial statements, which provide additional insights into the financial data presented. Adhering to the French GAAPs in these documents is not merely a regulatory requirement but also a best practice that enhances the credibility of the business.

Scrutiny by Legal Auditors and Tax Authorities

The adherence to French GAAPs is rigorously checked by various external parties. If a company meets certain size or revenue thresholds, it must have its financial statements audited by a “commissaire aux comptes” (legal auditor). These auditors evaluate the financial statements to ensure their compliance with the French accounting standards and their fair representation of the company’s financial position.

Moreover, compliance with the French GAAPs is also critical under the scrutiny of the French tax administration, particularly during tax audits. The tax authorities expect that the financial statements from which taxable income is calculated comply with the GAAPs to ensure the accuracy of tax assessments. Non-compliance can lead to significant issues, including financial penalties and increased scrutiny in future audits.

The Role of Professional Accounting Services

Navigating the complexities of the French accounting and tax environment demands professional expertise. Engaging with a qualified CPA who understands the nuances of the French accounting system and its regulatory landscape is indispensable. Such expertise ensures not only compliance with current laws but also prepares the company to adapt to potential changes in accounting regulations.

For businesses operating within France, rigorous adherence to French accounting standards is essential for legal compliance, accurate tax reporting, and maintaining corporate integrity. Ensuring that all financial processes align with these standards is a critical step in safeguarding the company’s operations against legal and financial risks. 

Assistance with transitioning to or from French accounting standards

For companies operating internationally, aligning with local accounting standards is crucial. In France, this often involves a GAAP conversion process to ensure compliance with the French Generally Accepted Accounting Principles (GAAPs). This conversion is essential for companies that maintain their primary bookkeeping under different accounting standards but need to meet French regulatory requirements. A French Certified Public Accountant (CPA) plays a critical role in facilitating this transition effectively.

The GAAP Conversion Process

  1. Analysis of Current Accounting Practices: The first step in the GAAP conversion is a thorough review of the accounting rules and methods applied under the initial accounting standard. This involves understanding the nuances of the current financial reporting to identify any significant differences with French GAAPs.

  2. Identification and Implementation of Adjustments: Based on the initial analysis, the CPA proposes necessary accounting adjustments or presentation reclassifications within the financial year. These adjustments ensure that the company’s final financial statements are compliant with French accounting standards. The adjustments can range from relatively straightforward changes like applying latent VAT on accruals, which are specific to French GAAP, to more complex modifications such as risk provisions. French GAAP requires risk provisions to meet specific criteria before they can be recognized, reflecting the conservative nature of French accounting practices.

The Role of a French CPA

Engaging a French CPA who is well-versed in both the local and international accounting standards is invaluable. Such a professional not only ensures that the financial statements accurately reflect the company’s financial position according to French regulations but also helps in navigating the complexities that arise during the transition. Whether it is understanding the intricacies of latent tax adjustments or the proper recognition of liabilities, a CPA’s expertise is crucial.

This transition assistance is not just about compliance; it’s about leveraging accounting standards to present the most accurate financial picture of the company. By ensuring conformity with French GAAPs, businesses safeguard their operational legality and enhance financial transparency, crucial for stakeholders and regulatory bodies.

French Subsidiary Accounting

Accounting services for subsidiaries of multinational companies in France

At L2A ADVISORY, we specialize in providing comprehensive accounting services tailored to the needs of French subsidiaries of multinational groups. Our team is equipped to handle a range of essential services, including meticulous bookkeeping, stringent tax compliance, precise preparation of financial statements, as well as audit facilitation and payroll management. 

We can manage legal french entities from any form and also french permanent establishment (branch) of your foreign legal company.

We ensure that these services not only meet the high standards expected by global businesses but also align seamlessly with the specific requirements of operating within the French regulatory framework. Our commitment is also to make sure that we combine the need to respect french tax law and accounting standards as well as your group standards and methods within our work. 

Management of financial records and compliance with local laws

Managing the accounting needs of a subsidiary in France requires strict adherence to local commercial and tax laws. L2A ADVISORY is committed to ensuring that all your financial records are managed impeccably and in full compliance with French regulations. To achieve this, we propose our general knowledge but we also collaborate with a network of expert partners, including VAT lawyers, transfer pricing specialists, notaries, and corporate lawyers. This multidisciplinary approach guarantees that every aspect of your subsidiary’s operations is covered, from routine financial management to complex legal compliance.

With L2A ADVISORY, you can be confident that your subsidiary’s financial practices are not only efficient but also legally sound, safeguarding your business against potential legal and financial risks.

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