My Experience with Accounting in Malta

As an expat entrepreneur who's managed businesses across Europe, including France and Bulgaria, I've seen my fair share of accounting systems. But when I started my business in Malta, I discovered that managing finances here came with its own unique challenges. Let me share how I transformed my accounting workflow from a time-consuming hassle into a streamlined, efficient process.

The Traditional Approach: Why It Wasn't Working

When I first arrived in Malta, I did what most business owners do – I hired a traditional accounting firm. Coming from France and Bulgaria, where processes were relatively straightforward, I was surprised by how complex and procedure-heavy Maltese accounting could be.

Picture this: every month, I found myself stuck in an endless cycle of sending bank statements and invoices to my accountant, waiting for their validation, and double-checking everything before tax submissions. For a small business with modest transaction volumes, it felt like using a sledgehammer to crack a nut. Not only was it time-consuming, but it was also unnecessarily expensive.

Finding a Better Way: My Modern Accounting Stack

After months of frustration, I decided to embrace modern solutions. The game-changers? Wamo for banking and Xero for accounting. Here's why this combination works so well:

Wamo: Modern Banking Made Simple

I upgraded to Wamo's "Grow" plan (€40/month), which seamlessly integrates with other financial tools. It's specifically designed for businesses operating in Malta, making it a perfect fit for expat entrepreneurs.

Xero: Where the Magic Happens

Xero has transformed how I handle my business finances. Here's what I love about it:

Automatic Bank Reconciliation: No more manual matching of transactions – Xero connects directly to Wamo and handles this automatically
Easy Invoicing: Create and send professional invoices in seconds
Expense Management: Quick receipt uploads and categorization
Real-Time Collaboration: My accountant can access everything they need without endless email chains

Tackling VAT Returns Like a Pro

One of my biggest wins was simplifying VAT declarations. With Xero, I can now handle VAT returns myself through the official portal.

Pro Tip: To submit VAT returns yourself, you'll need an e-ID account. If you're new to Malta, you can get this when you apply for your residence card.

The Payroll Game-Changer: Buddy

Here's something that really excited me: I discovered Buddy, a payroll service that's revolutionized how I handle employee payments. Let me share some numbers that might surprise you:

Old System: €70 per employee, per month, plus manual validation
Buddy: Just €2 per employee, per month, fully automated

Buddy integrates perfectly with Xero and automates salary payments – something my previous accountant didn't offer. This change alone has saved me both significant money and countless hours of administrative work.

Real Benefits for Real Businesses

Since switching to this modern setup, I've experienced tangible improvements:

Time Savings: What used to take hours now happens automatically
Cost Reduction: Significantly lower monthly accounting expenses
Better Insights: Real-time financial data at my fingertips
Mobile Access: Managing finances on the go through Xero's mobile app
Professional Integration: Everything works together seamlessly

My Advice to Fellow Entrepreneurs

If you're running a small business in Malta, especially as an expat, I strongly recommend considering this modern approach to accounting. Yes, there's an initial learning curve, but the benefits far outweigh the effort of setting everything up.

Start with Wamo for your banking, add Xero for accounting, and use Buddy for payroll. This combination has transformed my financial management from a dreaded monthly chore into a smooth, largely automated process.

The best part? You'll have more time to focus on what really matters – growing your business and enjoying life in Malta.

Have you had experience with business accounting in Malta? I'd love to hear about your experiences and solutions in the comments below.