Accounting automation for your Estonian company with Enty
Accounting is one of the most important processes for each company. It provides information regarding cost and earnings, profit and loss, liabilities, and assets for decision-making, planning, and controlling processes within a business.
Correct accounting is vital for any business as it might evaluate the company's financial performance. But in Estonia there is one other significant requirement: all companies must file an accounting report on their activities to tax reporting agencies once a year and monthly if a company obtains a VAT number.
Accounting is a sore point for each company. But no worries: Enty allows companies to automate their accounting conveniently and get rid of routine. In this article, we would like to focus on the reporting requirements in Estonia and our approach to automation of the process.
Reporting Requirements in Estonia
Basic accounting rules and processes in Estonia are regulated by The Accounting Act. Accounting for taxes is regulated by other laws and acts.
In practice, there are two different approaches to accounting: yearly reporting (for companies without a VAT number and companies that don't have paid employees) and monthly reporting (companies that obtain VAT ID and pay salaries to their employees). Let's take a look at both of them.
Yearly Reports
According to the Accounting Act, an accounting entity must prepare an annual report for the fiscal year at the end of each financial year (January, 1 — December, 31). The annual report should be filed at the Commercial Register within six months after the end of the financial year and consists of the annual accounts and the management report.
Monthly Reports
The accounting process is a bit different for companies that obtain a VAT number. The taxable period is one calendar month, and VAT returns must be submitted to the tax authority (even for the months when there could be nothing to declare) by the 20th day of the month following the taxable period.
The report typically includes the following:
Management report
Balance sheet
Income statement
Cash flow statement
Statement of changes in equity
Accounting Plans and Prices
Enty offers a convenient and easy way to automate accounting reporting for your company. Our accounting services are included in the Standard and Pro subscriptions
Yearly Reporting
Included in the Standard Subscription
from €51 / month
This plan includes:
1-hour consultation/year with an accountant
one Payroll/month
30 accounting documents for the report
primary documents for your report
Note that the number of documents can be increased by up to 60
Monthly Reporting
Included in the Pro Subscription
from €93 / month
This plan includes:
1-hour consultation/month with an accountant
one Payroll/month
15 accounting documents for the report per month
primary documents for your report
monthly declarations
Note that the number of documents can be increased by up to 50
However, due to the aforementioned factors, the price might differ and the final amount can be agreed upon only after consultation with our specialists.
The accounting process is quite complex and the price for accounting services will be provided for each client and based on several criteria:
Type of Business (if your company deals in the e-commerce sector, the price for accounting will always be structured personally);
Amount of accounting documents;
The number of hired employees
What's Included in Enty's Subscriptions
Documents and Reports
Enty's basic subscriptions include the following types of documents for accounting reports:
processing of sales and purchase invoices, agreements, acts
preparation of Credit and Debit reports, and Annual reports
the Pro subscription also includes tax declarations
Please notice that Payroll documents, Bank statements, and any additional reports are not included in the packages.
However, you can purchase them separately:
Payroll, TSD declaration: €10/person
Out-of-box report: starting from €10
Declaration change: €6/pcs
Consultation with an Accountant
We think that all accounting matters should be discussed with professionals. That is why all basic subscriptions include one-hour consultation with an accountant.
After purchasing a subscription, you will be able to pick a time slot for your consultation and address all your questions. We advise you to prepare all your questions and send them via email to an accountant before the call to save time and help the accountant be as exact as possible. This will also save you time.
You are also able to purchase additional consultations for €45/hour.
How Accounting Works on Enty
After you have purchased an accounting subscription with Enty and have consulted with an accountant on your case, you can start uploading the documents for the report.
To do that, choose the needed document or drag and drop it as shown on the GIF below.
Please make sure to upload the documents not later than on the 10th day of the month following the reporting period.
As soon as you've uploaded the document, you can identify which type it is and leave your comments. This will help us have a better understanding of a document.
After that, the accountant prepares the report based on your documents. If there will be any additional questions to complete the report, they will contact you to get clarification.
As soon as the questions are clarified, the report is ready to be downloaded and can be filed to the authorities.
How to File the Report With e-Residency
If you already have your e-Residency card or one of the digital IDs issued in the Baltics, the process will be done easily by our team.
To do this, first, you will need to grant access to your Private Client's page on the Tax and Customs website. We have prepared a separate guide on the process, in order to avoid confusion, you can check it out here.
How to File the Report Without e-Residency
If you don't have an e-Residency card, our team will also file the report for you. However, the process might be a bit more complicated in this case.
To file a report, a client will need to grant access to the Private Client's page on the Tax and Customs website. However, in this case, it is done through the provision of Power of Attorney to an accountant.
To do that:
1) a client needs to fill in the power of attorney to grant access rights to a representative of a legal entity
2) send the photo of your passport, power of attorney, and your photo holding the aforementioned documents next to your face to the accountant via email
And that's it, you won't need to do anything else. We will file the report for you and will notify you as soon as everything is done.
Important Information for Companies With VAT Number
As we have identified above, the monthly package also includes tax declarations that companies with a VAT number are obliged to file on the monthly basis.
In this case, it is especially important to provide documents on time, so we can guarantee the timely submission of the VAT declaration by the 20th of every month.
After our team processes all documents, bank statements, and files a VAT return, the accountant will send you reports by email, which consists of VAT declaration, profit and loss statement for the reporting period, accounts payable and receivable reports as of the end of the reporting month. We also advise providing access to your Private Client's page as soon as possible.
And that's it! Feel free to address your questions to our team if you require any assistance. If you haven't purchased an accounting package yet, we recommend making this now :)
