Monthly accounting is not simply a matter of ‘submitting reports’, but a cycle that should run smoothly on its own: documents are received, questions are asked in good time, tax returns are filed before the deadline, and the business owner knows the amounts due in advance, rather than on the day of payment. The difference between a good and a bad accountant is not evident in the tax return, but in the number of questions asked: someone who fails to ask about an unclear payment in March will only discover it in June – when it costs more to rectify.
We manage the monthly cycle for Estonian companies entirely remotely: we receive source documents, reconcile them with banks and payment providers, clarify any uncertainties before filing, prepare and submit KMD, VD and TSD returns, and notify you in advance of how much and when you need to pay. Our fee is calculated based on the actual volume of documents, rather than on an abstract ‘business size’.
| Topic | Practical explanation |
|---|---|
| What is it? | Regular document processing, reconciliation, declarations and monitoring of deadlines — every month |
| Who needs it | Companies with regular operations, VAT payers, employers, and sellers on marketplaces |
| Who only needs an annual report | Companies with no business activity or only occasional transactions |
| KMD return | By the 20th of the following month, if VAT-registered |
| TSD return | By the 10th of the following month, where payments are made to individuals |
| VD report | By the 20th, for supplies to B2B customers in the EU |
| OSS return | Quarterly, for sales to consumers in the EU exceeding the threshold |
| What determines the price | Number of documents per month, VAT status, number of employees, number of invoices and currencies, complexity of the business model |
| Deadline for submitting documents | We recommend by the 5th of the following month — this allows time for clarifications |
| Working format | Fully remote: electronic documents, digital signature |
| Transition from another accountant | At any time; accounting documents and access rights remain the property of the company |
If you have any questions, our managers are always on hand and ready to help! If you’re not sure how many transactions you have each month, simply send us a bank statement for any month and we’ll work it out for you.
The honest answer depends on the company’s level of activity, rather than its age or turnover.
Monthly accounting is required if at least one of the following applies:
An annual report may suffice if the company has not carried out any business activities or has only conducted isolated transactions without VAT registration or payments. However, this must be verified based on facts, not on a hunch: any account activity, even minor, already requires accounting for that period. We review the statement and tell you straight away which format you need — including if it’s the cheaper option.
Companies with the same turnover incur different maintenance costs, and the difference almost always lies in the same set of factors:
Practical conclusion: you can reduce your costs without changing your service provider. We provide a brief set of document management rules from the outset, and for most companies, this pays for itself within the second or third month.
A ‘document’ is usually understood to mean a single accounting transaction: an invoice issued, a supplier’s invoice, a receipt, a line item on a bank statement, or a payment provider’s statement for the period. This is precisely why a company with a turnover of €100,000 and ten large invoices per month is cheaper to service than a company with a turnover of €20,000 and three hundred small transactions via a payment gateway. We base our assessment on the actual statement – this is more accurate than any questions about the ‘size of the business’.
| Form | What is declared | Deadline |
|---|---|---|
| TSD | Salaries, remuneration to board members, dividends, special benefits | By the 10th of the following month |
| KMD | Turnover, input VAT, imports, exports | By the 20th of the following month |
| VD | Supplies of goods and services to B2B customers in the EU | By the 20th of the following month |
| OSS | Sales to consumers in the EU under the special scheme | Quarterly |
Important: a KMD return must be submitted even for months with no transactions if the company is registered as a VAT payer. A ‘zero’ return is still a return, and failure to submit it results in a tax liability.
The most common cause of discrepancies in the accounts of international companies is attempting to record receipts from Stripe, Paddle or a marketplace based on the amount credited to the bank account. This amount has already been net of commissions, refunds, deductions and provisions, and therefore does not equal revenue. Correct accounting is based on the provider’s statement: revenue is recorded in full, commissions as an expense, and refunds as an adjustment. A separate issue is foreign currency receipts and the timing of conversion into euros. If your company does not yet have a bank account, or if the bank has refused your application, start by finding out how to open a bank account for an Estonian company.
These are two distinct categories with different implications. Payments to a board member are taxed regardless of where they reside, whilst the salary of an employee working outside Estonia is usually taxed in the country where they work. Companies where the founder is both a board member and an employee under a contract must keep these roles properly separate; otherwise, there is a risk of reclassification.
If you are just starting to look for a new contractor, a separate guide on how to choose an accountant in Estonia in 2026 may be useful. The procedure itself is straightforward: you receive the source documents, ledgers and access details from the previous accountant – by law, these belong to the company. We check which periods have been finalised and submitted, whether there are any discrepancies with the tax authority’s data, and continue the cycle. The best time to make the switch is after the end of the reporting month, but the transition can take place at any time. If the previous accountant has stopped responding and the accounts are overdue, we begin by auditing the current status and restoring the records.
There’s no need to estimate the volume by eye: a bank statement for any given month provides everything we need for the calculation. Within one working day, we’ll get back to you with a fixed monthly fee and a service package tailored to your model.
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