Accounting and Bookkeeping Services in Lithuania

Why Does a Company Need Accounting and Bookkeeping Services?

As an entrant in the business milieu, it is better to record all the business transaction to get a kick-start for your business. In the long run, accounting and bookkeeping helps you in quality control of your financial framework. Bookkeeping is the process of recording business transaction whereas accounting is a wider concept which deals with recording, classifying, interpreting, analyzing, reporting and summarizing financial data. Well-structured accounting and bookkeeping services ensure that your company runs more efficiently on a daily basis.

Accounting and Bookkeeping in Lithuania

Lithuania is a country in north-eastern Europe. The increased international trade and greater production have led to the economic growth of the country. The tax policies of Lithuania are attracting foreign investors to start their business in the region. Thus, let’s understand the accounting and tax structure of Lithuania.

Accounting Law in Lithuania

As Lithuania belongs to the EU, accounting in the country is subject to EU regulations and directives. The Ministry of Finance is responsible for developing and setting the accounting standards based on the International Financial Reporting Standards (IFRS). The major requirements of the accounting law in Lithuania are:

• The accounting law of Lithuania sets the requirements for preparing corporate financial statements
• The law describes accounting standards to be applied based on the type and size of the company
• According to the law, all public interest entities must apply International Financial Reporting Standards (IFRS) in both the consolidated and separate financial statements
• The SMEs in the country have the option to apply IFRS or Business Accounting Standards (BAS) in both consolidated and separate financial statements

The accounting law applies to:

• Permanent and non-permanent residents of Lithuania performing individual activities
• Foreign company branches and representative offices located in Lithuania
• Legal persons with limited and unlimited civil liability
• Farmers’ farms
• Resources and tax funds, investment funds, pension funds

The Tax Framework of Lithuania

The taxation policy in Lithuania is considered to be business-friendly, and the policy is adapted to the legislation of the European Union. The tax in Lithuania is affordable to investors, which encourages the development of foreign investments and the labour market. There are 7 main types of tax in Lithuania:

• Corporate income tax
• Real estate tax
• Personal income tax
• Excise duty
• Value Added Tax (VAT)
• Land tax
• Lottery and gaming tax
• Inheritance and gift tax

Our Accounting and Bookkeeping Services in Lithuania

Business Setup Worldwide understands the need for accounting and bookkeeping in an established company. We provide a wide spectrum of accounting and bookkeeping services that include:

• Bookkeeping and financial reporting
• Assisting in Lithuania tax proceedings
• Maintaining books of accounts according to the regional laws
• Preparing budget and cash flow statements for management
• Accounting advisory support services
• Creating and filing all mandatory reports to the regulatory bodies
• Setting up an accounting framework

Benefits of Availing Accounting and Bookkeeping Services

Accounting and bookkeeping services can take a business to the next level. Let’s look at the benefits of availing these services:

• Systematic records help to trace business malpractices, if any
• Financial and budget forecasting becomes simple
• The financial stability of a company gets highlighted
• Up-to-date financial statements help to avoid any kind of financial loss
• Accurate records of a company’s finances help to determine its financial position

Why Us?

At Business Setup Worldwide, we make sure that you remain focused on your business objectives, while we take care of all support functions. We are well experienced in our taxation, accounting, and bookkeeping service so that you don’t have to worry about it. Dealing with financial accounting can get complex in a country overseas. Our experts assist you with handling company finances and the requisite formalities in Lithuania.