What is accounting in Estonia?
Accounting is an orderly system of collecting, recording and summarizing information in monetary terms on the property, liabilities of organizations and their movement by means of continuous and documentary recording of all economic transactions.
Opening balance sheet.
In the event of an accounting obligation, an initial balance sheet should be established first, reflecting assets, equity and pre-business liabilities.
Business year report.
The person obliged to keep accounting records shall annually, not later than within 6 months after the end of the economic year, draw up and submit to the Commercial Register a report for the economic year, providing a holistic and reliable view of the results of the past economic year.
Types of accounting services in Estonia:
- establishing or assisting in the establishment of a new legal entity;
- accounting in the enterprise;
- restoration of bad accounting records;
- database input services (document outsourcing);
- tax accounting services, preparation of tax returns;
- consultations on Estonian tax legislation;
- accounting advice in Estonia;
- compilation of interim and annual reports on the economic activity of the enterprise;
- outsourcing of accounting services;
- acting as chief accountant, assistant accountant.
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The main systems for accounting transactions in Estonia.
Accounting Estonia has two different system: the accrual method and the cash basis. In Estonia, persons obliged to keep accounting records keep accounting on an accrual basis.
In the case of accrual accounting, a business transaction should be recorded according to the transaction, regardless of whether the related amount has been received or paid.
Cash-based accounting is the reflection of a business transaction in accordance with the receipt or payment of a monetary amount related to the business transaction.