Click here to view the January newsletter
If you own a company in Estonia, here’s some fantastic news! Recent changes in audit thresholds are set to make life easier for many business owners. Let’s break it all down in simple, friendly terms so you can see how this might affect your business.
Why This Matters
Running a business can be tough, and mandatory audits often add extra costs, time, and effort. On top of that, finding an available auditor in Estonia can feel like hunting for a needle in a haystack! Auditors are in high demand, and getting through an audit can take months.
What’s more, the cost of audits has skyrocketed. A small company that used to pay around €2,500 for an audit a few years ago now faces costs three times that amount.
But here’s the good news: new rules are coming to the rescue!
New Audit Thresholds
Starting with the annual reports for 2024, the thresholds for mandatory audits and reviews have been raised by 25%. That means fewer companies will need to undergo these processes, saving time and money for many business owners.
If your company does still need a review or audit, it’s a good idea to start looking for an auditor sooner rather than later, as demand remains high. Let’s look at the updated rules.
What’s Required?
Under Estonia’s Auditing Act, businesses must meet certain thresholds before a review or audit becomes mandatory. Here’s how it breaks down:
When is a Review Needed?
A company must get a review if it exceeds at least two of these limits:
- Revenue: €2,000,000
- Total assets: €1,000,000
- Average employees: 24
Or if it exceeds one of these higher limits:
- Revenue: €6,000,000
- Total assets: €3,000,000
- Average employees: 72
When is an Audit Needed?
An audit is required if a company exceeds at least two of these thresholds:
- Revenue: €5,000,000
- Total assets: €2,500,000
- Average employees: 60
Or if it surpasses one of these higher thresholds:
- Revenue: €15,000,000
- Total assets: €7,500,000
- Average employees: 180
We’re Here to Help!
At 1st Step, we specialize in helping businesses navigate financial and legal landscape. Whether you need help with:
- Company administration
- Tax planning
- Accounting and bookkeeping
- Secretarial services
- Or finding the right auditor
We’ve got your back! With years of experience working with hundreds of clients, we’re here to make your business journey in Estonia smooth and stress-free.
Need support with your next audit or review? Don’t hesitate to reach out—we’d love to help!
Contact Us Today
Let’s get started on making your business thrive. Reach out to our team of experts, and we’ll help you find the perfect solution for your unique needs.
Making business simple, one step at a time.
Click here to view the January newsletter
