What is accounting in Estonia?

Accounting – a system of observation, generalization and reflection of financial and economic activity of an enterprise in order to obtain reliable data on its activity. Objects of accounting are means, their movement in the process of production and circulation, as well as the sources of their formation and use.

Basic feature of accounting.

Accounting is strictly documented. This means that each transaction should be recorded in the accounting records only on the basis of documents, which gives it legal probative force; accounting uses specific techniques and processing of accounting data: for example, a system of accounts, double entry of transactions on accounts.

The main objectives of accounting.

Accounting implies monitoring the availability and movement of assets, material, labour and financial resources in accordance with approved standards, standards and estimates. Besides, formation of full and reliable information on the business processes and results of the enterprise, the institution necessary for operational management and management, as well as for its use by investors, suppliers, buyers, creditors, tax, financial and banking authorities.

Tasks of the accounting in Estonia.

  • The main task of accounting service in Estonia is the formation of complete and reliable information (accounting reports) about the activities of the organization and its property position.

  • Providing the information required by internal and external users of accounting records to monitor compliance with the Estonia legislation when carrying out business operations and expediency;

  • The existence and movement of property and liabilities, the use of material, labour and financial resources in accordance with approved standards and estimates;

  • Revention of negative results of economic activity and identification of internal economic reserves, ensuring its financial sustainability.