Business Accounting Basics for Foreign Founders
Established in 2014, we are an innovative and reliable accounting partner for startups, service companies, and manufacturing businesses operating in Estonia.
Estonia makes it easy to establish a company. Running it correctly requires understanding. It requires compliance with Estonian accounting, tax, and labour regulations, regardless of where the business owner is located. If you are an E-resident, Startup founder, international business owner- or manager, running businesses registered in Estonia.
Key topics
You should get to know these 9 key topics, that international business owners most often struggle with, including:
- Which business expenses are allowed under Estonian law
- What constitutes a compliant and acceptable expense document
- Which expenses can be treated as tax-free
- Who is allowed to issue invoices and under which type of contract
- How to correctly purchase services from private individuals
- Employee rights and employer obligations under Estonian labour law (employment contracts, holidays, termination rules, etc.)
- Capitalisation of development costs and when costs can or cannot be expensed
- How accounting decisions affect taxes, cash flow, and reporting
- When and why to seek professional advice before issues arise
Our colleague Maimu recommends that both local and foreign entrepreneurs engage with an accountant already at the start of their operations. This helps ensure clarity regarding:
- accounting and reporting
- financial information for managers and investors
It is important also to choose suitable accounting software so that payment solutions and the e-shop (or SaaS environment) integrate seamlessly with the accounting system, avoiding an unreasonable amount of manual work and additional costs. We promote digitalisation at every possible opportunity.
Maimu is our Accounting Specialist for International Founders. English is her second native language as she spent 25 years of her life in Canada, which gives her a strong understanding of international business culture. With over 20 years of experience in accounting and a background in business operations in Estonia, Maimu and our team help foreign founders navigate Estonian accounting and tax requirements clearly and confidently from the start.
