In Portugal, the concept of a “certified bookkeeper”, as understood in some countries, does not exist. Instead, Portuguese law mandates that all companies engage a Contabilista Certificado (Certified Accountant), who is enrolled with the Certified Accountants Guild (Ordem dos Contabilistas Certificados).
Legal Requirement for Businesses in Portugal
Portuguese legislation establishes that Certified Accountants, professional societies of CCs, accounting societies or multidisciplinary societies.
Understanding the Role of a Certified Accountant
A Certified Accountant (CC) is a professional authorised, under law, to perform accounting and tax-related activities in Portugal and whose responsibilities include:
- Executing and managing accounting records: Ensuring accurate and timely recording of all financial transactions.
- Preparing financial statements: Compiling balance sheets, income statements, and other essential financial reports.
- Filing tax returns: Handling all tax obligations, including VAT, corporate tax and other taxes to which the company may be subject.
- Providing tax consultancy: Offering tax planning and compliance advice to optimise financial performance, a responsibility shared with Lawyers and Economists
- Representing the company before tax authorities: Acting as the liaison during audits or any tax-related proceedings.
These professionals must be registered with the Ordem dos Contabilistas Certificados (OCC), the governing body overseeing the accounting profession in Portugal. As a public regulatory professional body under law, the OCC ensures that its members adhere to strict ethical and professional standards and receive proper recurring training, which is essential in maintaining the integrity and reliability of a company’s financial reporting.
Failure to keep organised accounts, as the responsibility of the Certified Accountant, or keeping fictitious accounts can lead to insolvency being classified as culpable by the Insolvency and Company Recovery Code.
Conclusion
In Portugal, the distinction between certified and non-certified accounting professionals is clear-cut. The law mandates that all companies engage a Contabilista Certificado (and not a “certified bookkeeper”) to oversee their accounting functions, be it an employee of the company or a third party, a crucial requirement to guaranteeing the legal and fiscal compliance of companies, the reliability of financial information and the prevention of risks associated with inadequate accounting practices.
The founding of Madeira Corporate Services dates back to 1995. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
