Yes, it's mandatory. When operating a business in Estonia, it is essential to comply with local accounting and legal standards to ensure that your company is adhering to the best practices in accounting.
Keeping your books in order is crucial to providing financial transparency to your creditors and business partners and ensuring the accurate calculation of taxes.
There are three main accounting policies that you must follow in Estonia:
The Accounting Act of the Republic of Estonia - this law outlines the requirements for accounting practices, including bookkeeping, accounting documentation, and financial reporting.
Estonia’s Good Accounting Practices - these guidelines provide recommendations for accounting standards and practices, including financial statement preparation, accounting documentation, and audit procedures.
The guidelines issued by the Accounting Board of the Republic of Estonia - this is an advisory board that issues guidance on accounting practices and standards, including the interpretation of accounting regulations and the development of new accounting principles.
By adhering to these accounting policies, you can ensure that your company's financial information is accurate and transparent.
Moreover, accounting is the basis for preparing the annual report. Submission of the annual report is mandatory, if not submitted, the state imposes a fine, and in some cases also forced termination.
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