Accounting Services in Estonia: A Comprehensive Guide

Nov 1, 2023 | Accounting, Guide

Estonia has become a popular destination for businesses looking to expand their operations due to its business-friendly environment. However, navigating the local accounting regulations can be complex and time-consuming. That’s where professional accounting services come in. In this comprehensive guide, we will explore the ins and outs of accounting services in Estonia, including bookkeeping, VAT and tax declarations, and the benefits of outsourcing these services.

The Importance of Accounting in Estonia

Accounting is an integral part of doing business in Estonia. It serves the purpose of keeping records and providing a clear overview of the financial performance and state of a company. All companies, including branches of foreign companies operating in Estonia, are required to comply with government-set accounting standards. These standards ensure that the financial results of companies are comparable and understandable.

Bookkeeping Services in Estonia

Bookkeeping is a fundamental requirement for every company operating in Estonia. It involves recording all business transactions and ensuring that they are accurately documented. The goal of bookkeeping is to provide a reliable, objective, and comparable view of the financial situation, performance, and cash flows of a company.

To ensure compliance with Estonian regulations, companies must adhere to certain basic requirements for organizing their accounting:

Documentation of Business Transactions: All business transactions must be recorded using accounting software, and supporting documents must be properly documented.

Accounting Policies and Procedures: Internal accounting procedures should be developed to regulate the chart of accounts, documentation and recording of transactions, maintenance of accounting registers, income and expense reporting, and inventory management.

Choice of Accounting Chart: Estonian companies can choose between two types of income statement schemes, Chart 1 and Chart 2, depending on the nature and complexity of their business operations.

Opening Balance Sheet: Before commencing business activities, companies are required to prepare an opening balance sheet that lists their assets, liabilities, and share capital.

Annual Report: An annual report, consisting of financial statements and a report on the activities of the company, must be prepared and submitted to the Commercial Register within 6 months after the end of the financial year.

Benefits of Outsourcing Accounting Services

Outsourcing accounting services offers numerous advantages for businesses operating in Estonia:

Expertise and Compliance: Professional accounting firms have extensive knowledge of Estonian accounting regulations and ensure that all financial processes are compliant with the law.

Cost Efficiency: Outsourcing accounting services can be more cost-effective than hiring and training in-house accountants. It eliminates the need for investing in accounting software and systems, as well as ongoing training and development.

Focus on Core Business: By outsourcing accounting tasks, companies can free up valuable time and resources, allowing them to concentrate on their core business activities and strategic growth.

Access to Advanced Technology: Accounting firms utilize sophisticated accounting software and tools, providing businesses with access to state-of-the-art technology without the need for additional investment.

Timely and Accurate Reporting: Professional accountants ensure that financial statements, reports, and tax declarations are submitted accurately and on time, reducing the risk of penalties and fines.

Confidentiality and Data Security: Reputable accounting firms prioritize the confidentiality and security of their clients’ financial data, implementing robust measures to protect sensitive information.

Our Accounting Process and Approach

At BBCTallinn, we take a personalized approach to accounting, ensuring that each client’s individual needs are met with the utmost care and attention to detail. Our team of dedicated accountants works closely with clients to handle their financial affairs, from collecting source documents to filing tax returns.

We prioritize quality control, with our chief accountant overseeing all work and conducting regular checks to ensure accuracy and compliance with Estonian regulations. Our compliance department monitors all transactions to prevent issues related to anti-money laundering and tax evasion.

Services Offered by BBCTallinn

BBCTallinn offers a wide range of accounting services tailored to the specific needs of businesses operating in Estonia, including:

Bookkeeping: Our experienced accountants enter all relevant data into accounting software, ensuring accurate record-keeping and compliance with Estonian standards.

Tax Declarations: We handle the preparation and submission of VAT, corporate income tax, and social tax declarations, ensuring compliance with Estonian tax laws.

Financial Statements: Our team prepares monthly, quarterly, and annual financial statements, providing valuable insights into your company’s financial position and performance.

Payroll Management: We handle salary calculations, employee contracts, and other personnel-related documents, ensuring compliance with labor laws and regulations.

Consultations: Our accountants are available to provide expert advice and guidance on various accounting and financial matters, helping you make informed business decisions.

Pricing and Additional Services

BBCTallinn offers transparent pricing based on factors such as the size of your business, the number of employees, and the volume of records processed. We provide a range of additional services, including assistance with VAT and EORI number registration, legal advice, and cryptocurrency company accounting.

Contact us for Your Accounting Needs

Outsourcing your accounting to BBCTallinn ensures that your business receives professional and reliable accounting services in Estonia. Our team of multilingual accountants is committed to providing quality work, maintaining confidentiality, and helping businesses thrive. Contact us today for a consultation and let us take care of your accounting needs, allowing you to focus on what you do best – growing your business.

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