According to the the Accounting Act valid in Estonia all apartment cooperatives operating on the territory of Estonian Republic to keep their accounting. Therefore, accounting should be started immediately once the new apartment cooperative registered.
Contrary to popular city legends the apartment cooperative are not allowed to keep accountings on a cash basis. Cash basis accounting is permitted only for FIEs. Apartment cooperatives have to follow the requirement to keep accounting on an accrual basis.
Frequently asked questions from beginner apartment cooperative to accountant
1. Why do we need internal accounting policies and procedures?
First of all, it’s required by the law. Secondly, in RSKE you can describe how the work processed should be performed and define yours and accountant responsibilities.
2. When annual report has to be presented?
An annual report has to be presented for a submission to the Estonian Business Register no later than six months after the end of the fiscal year.
3.Is it necessary to submit reports to the Statistics’ department?
Yes, otherwise you might receive a fine from Statistics’ department
4. What is TSD and why it has to be necessarily submitted before the deadline?
TSD is a declaration of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension. For example, salaries, license fee, royalty, rent, fringe benefits, dividends, gifts, over tax-free limit executive expenses are taxed with this kind of taxes. You have an obligation to submit the TSD by the 10th of each month. TSD must be submitted on time; otherwise the Tax and Customs Board will charge you a penalty.
5. How is utility invoice called correctly? Payment notice or Invoice?
A utility invoice can be called both options.
6. What date to put on the invoice?
The date of the invoice can be either the actual date of the invoice, and the last day of the last month, since for the accounting invoice is related for the previous period expenses, i.e. when you get an invoice from the apartment cooperative, you are dealing with an invoice for the last month, no matter what date indicated on the invoice.
7. How long should I keep the documents?
The documents related to the apartment cooperative activities must be kept for 7 years.
8. Can anyone of the house residents or apartment cooperative keep accountings himself?
Yes, of course, you can keep accounting yourself, however, lack of knowledge in accounting may negatively affect correctness of accounting transactions and final invoices for the residents. Therefore, we recommend to delegate accounting keeping to the professionals, such as accounting company.
9. How do I invoice residents?
Invoice for the last month is generated and sent to the residents in the current month.
How to decide who will keep accounting?
In order to decide how to keep accounting: by yourself or delegate to an accounting company, find out what would be the total price if you use our company accounting services. First of all use our price calculator to get an exact price. After that you can send us a price request directly from the calculator form or using our contact form below.
Calculate the price
After we contact you and clarify all the details, we will proceed to the compilation of contract. You can sign it using the id card or by sending us a scanned copy of the document, or at our office. Once the contract is signed, you will be assigned your personal accountant who will service your apartment cooperative and, if necessary, advice you on matters related to accounting and taxation. You will also have an access to our e-services system for apartment cooperatives, which allows you to provide readings electronically, see the history of expenditure and look at the managements’ records (protocols).
The contract is signed. What’s next?
First, you need to open access to your personal accountant to the Tax Department and Commercial Register systems. It also makes sense to give an accountant access to your bank account (without the right to make payments). Now you can throw off the care of the accounting part and only thing you have to do is send monthly not later than by the 7th of the each month all accounting documents for the last month, all the rest will take care your accountant. Each month you will get all necessary accounting reviews and financial statements, all required tax declarations will also be presented monthly.
More information about the standard terms of the contract
