Accounting services for Tartu companies

Why get the books right from the first month?

Because every later report, from the VAT return to the annual report and investor updates, is built on those first entries.

One of the first entries is share capital. That is the money the founders put in, or agreed to put in, for their shares. The books should show it correctly, including any part that is not paid in yet.

Early costs count too. A laptop, software licences and setup fees paid before the first sale all belong in the books. If they are missing, the first annual report is harder to put together.

You must register for VAT once your taxable turnover passes 40,000 EUR a year. Some startups register earlier so they can reclaim the VAT on what they buy. Our company formation support covers these first decisions.

Board member fee or salary: how should a founder be paid?

Both are possible, and both are reported in the payroll tax return (TSD), which is due by the 10th of the following month.

The TSD is the monthly return for salaries, fees and the taxes on them. Social tax of 33% applies to both a salary and a board member fee. They differ in other contributions and in the protection the founder gets, so it pays to compare them before the first payment.

Our article on board member fee or salary sets out the differences. Many founders also leave profit in the company at first. Retained profit is taxed at 0%, and distributed profit at 22%.

Grants and investor reporting

If your company receives a grant or brings in investors, we keep the books so each report can be taken straight from them.

A grant usually comes with rules on what the money may be spent on. We mark those costs in the books, so the grant report and the annual report agree with each other.

Investors tend to ask for a regular view of costs, cash and runway. Runway is how many months the company can keep going on the money it has. With tidy monthly books, those numbers are ready when you need them.