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Accounting Estonia
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Accounting on a cash
There are two different systems for keeping records of business transactions in Estonia – accrual method and cash method. In Estonia, persons obliged to keep accounting records are kept on an accrual basis.
Accounting on a cash basis in the Republic of Estonia is allowed, at will, only by individual entrepreneurs (FIE).
Accrual accounting
In the case of accrual accounting Estonia, business transactions should be recorded in accordance with the performance of the business transaction, regardless of whether the amount associated with it was received or paid.
Cash accounting is the reflection of business transactions in accordance with the receipt or payment of a monetary amount associated with a business transaction.
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