ACCOUNTING SUPPORT FOR BUSINESS (COMPANY) IN ESTONIA

ACCOUNTING SUPPORT FOR BUSINESS (COMPANY) IN ESTONIA

The current Estonian Accounting Act entered into force in 2019. This law establishes the legal framework and general requirements for accounting and financial reporting in Estonia. The general requirements for the organization of accounting are:

Organization of accounts in such a way as to ensure the provision of information on the financial position, performance, and cash flow.

On the basis of primary documents or consolidated documents prepared on their basis, conduct and record all business transactions in accounting registers and journals

Retention of accounting documents for at least 7 years

If you are already familiar with some International Financial Reporting Standards (IFRS), then you may find a lot in common in some aspects of financial reporting, as GAAP standards are very similar.

In Estonia, all domestic public companies whose securities are traded on a regulated market are required to use these standards in their financial statements. They also allow foreign companies to use these standards for listing.

Differences in accounting policies are mostly related to the fact that in some areas, Estonian GAAP allows a choice of accounting policy: either the single policy adopted in accordance with IFRS for SMEs or a policy that was once specified in Estonian GAAP. In areas not covered by Estonian GAAP, the use of IFRS for SMEs is recommended, but not mandatory. In the Estonian GAAP standard, there is always a comparison with the relevant area of ​​IFRS for SMEs.

In Estonia, an auditor must check your company’s accounting and financial documents if your business has large revenues, assets, or human resources (including private limited companies). Audits are conducted to remove any irregularities in the company’s finances and this promotes transparency. They are conducted by an internal auditor or an audit firm with a registered sworn auditor.

As we can see, accounting and reporting in Estonia are quite strict requirements. Therefore, it is necessary to contact professionals in this matter.

Accounting outsourcing of companies in Estonia is the best option for business owners. The cost of such accounting support is much lower than keeping your own accountant on staff.

Accounting support for activities in Estonia

For the correct submission of all tax and financial statements, in accordance with EU legislation, a large number of companies registered in Estonia use the services of accountants who are not part of the company’s staff. We have representatives in Tallinn, so they will be able to help you submit all reports correctly and on time

An accounting firm in Estonia, what are the advantages of working with it?

External accounting services in Estonia have many advantages.

A Ukrainian- or Russian-speaking accountant in Estonia, namely in the capital, Tallinn, is our advantage over other accounting companies.

Consulting on accounting in Estonia in Ukrainian or Russian will simplify the understanding between you and the accountant, and make it more accessible for you to understand Estonian legislation in the field of accounting and taxes.

Accounting in Estonia

Since Estonia is a member of the EU, and EU legislation sets strict requirements for accounting and tax accounting.

In general, there are the following accounting options, are also used in Estonia:

• When a director or an individual entrepreneur independently maintains accounting. In this option, there are practically no advantages, but there are many disadvantages, in particular, insufficient time for conducting business directly, making mistakes in case of omission of novelties in the legislation of Estonia and the EU.
• When there is an individual who is registered as an accountant and carries out his activities in the company. In this case, a person fulfills his obligations to the firm without any problems, fulfilling his direct duty of accounting for a certain firm – this is an obvious advantage.

However, there are also disadvantages: the rather large salary for maintaining such an accountant, which reaches about 1 thousand euros per month, and in some cases, it can be even more. Also, if the accountant does not come to work, then it is necessary to find a replacement for him, this involves additional costs. Often, one chief accountant and several ordinary accountants are hired, which implies significant costs for their maintenance.

• Accounting support (outsourcing) of business in Estonia

There will be no downsides if you contact real professionals who guarantee their work.

If the last point is more detailed, then we provide services of an accountant in Estonia, in particular:

Accountant in Tallinn

Accountant services in Estonia include:

• Accounting service for enterprises of all organizational and legal forms
• Accounting and tax audit of a company (business) in Estonia
• Preparation and submission of declarations and reports to tax and control authorities
• Representation of a lawyer and an accountant in the Estonian tax authorities
• CIT, PIT, ZUS, VAT (VAT), declarations – preparation, verification, and submission to regulatory authorities.
• Keeping personnel records, calculation of salary, payment of relevant taxes for employees, submission of personnel reports
• Import-export operations (WDT, WNT)
• Preparation of invoices and invoices
• Making bank payments
• Analysis of the financial state of the enterprise

Accounting services in Estonia are one of the main areas of activity of YK Prykhodko and partners because we are familiar with the legislation of Estonia and the EU in the field of taxation and financing, and therefore we clearly understand how the tax system of Estonia works and will help you choose the best tax system specifically for your business because, for each client, we have an individual approach that depends on the direction of your activity, the organizational legal form of the legal entity.