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Welcome to Estonia’s Business World!
Estonia is a great place for entrepreneurs and businesses, thanks to its digital edge and welcoming environment. If you’re running or planning to start a business here, understanding the audit requirements is crucial. Let’s break down what you need to know about audits in Estonia and how they can benefit your company.
Why Are Audits Important?
Think of audits as a financial health check-up for your business. They ensure your financial statements are accurate and trustworthy, giving peace of mind to everyone involved—from investors and lenders to regulatory authorities. In Estonia, audits help keep the business world transparent and trustworthy.
Types of Audits in Estonia
Depending on your needs, there are different levels of audit services:
Statutory Audit: This is a thorough review that ensures your financial statements are accurate and fair. It’s required for companies meeting the mandatory criteria.
Review: Less intense than a statutory audit, a review provides some assurance about your financials and is perfect if you don’t need a full audit but still want some oversight.
Do All Estonian Companies Need Audits?
Not necessarily! Whether your company needs an audit depends on its size and type.
Here’s a quick rundown:
Small Companies: If your business is on the smaller side, you might be off the hook for mandatory audits unless your company’s rules or shareholders say otherwise (for example, special requirements or a public interest).
Medium and Large Companies:
You’ll need an audit if your company ticks at least two of these boxes in the last financial year:
- Sales: Over EUR 4 million;
- Assets: Over EUR 2 million;
- Employees: More than 60 on average.
Or at least one:
- Sales: over EUR 12 million;
- Assets: over EUR 6 million;
- Employees: More than 180 people.
You’ll need a review if your company ticks at least two of these boxes in the last financial year:
- Sales: Over EUR 1.6 million;
- Assets: Over EUR 800 000;
- Employees: More than 24 on average.
Or at least one:
- Sales: over EUR 4.8 million;
- Assets: over EUR 2.4 million;
- Employees: More than 72 people.
Voluntary Audits: Why Opt for One?
Even if you’re not required to have an audit, choosing to get one can be a smart move. Here’s why:
Audited financials can make your business more attractive to investors, banks, and partners. Auditors can catch potential risks before they become big problems: highlights areas where your financial reporting and controls can get better.
Choosing the Right Auditor
Here are some tips to find the best auditor for your needs:
- Look for firms with a good track record and experience in your industry;
- Make sure the auditor is properly licensed and follows all the required standards;
- Choose someone who explains things clearly and responds promptly;
- Don’t let cost be the only factor. Quality and thoroughness are key;
Contact us: Our trusted partners in Estonia will handle your audit with care!
We’re here to help ensure your company stays compliant and financially healthy in Estonia.
Click here to view the July newsletter
