Annual Report Preparation in Estonia

We can, but the annual report preparation will be preceded by a bookkeeping catch-up. The bank reconciliation for October, November, and December must be completed before we can produce an accurate trial balance — and therefore accurate financial statements. We offer a bookkeeping catch-up service that runs alongside annual report preparation. The process: we complete the bank reconciliation and post any missing transactions first; then we move to year-end adjustments and report compilation. The additional catch-up work is quoted separately from the annual report fee depending on the volume of unposted transactions. If you provide access to Merit Aktiva and the bank statements, we can assess the scope within 1–2 business days.

The balance sheet (bilanss) is a snapshot of your OÜ’s financial position on one specific day — the last day of the financial year (31 December). It shows what the company owns (assets — assets include cash, receivables, equipment), what it owes (liabilities — loans, unpaid supplier invoices, tax obligations), and what belongs to the shareholders (equity — share capital plus accumulated profits or losses). Assets always equal liabilities plus equity — this is why it is called a balance sheet. The income statement (kasumiaruanne) covers the entire financial year — from 1 January to 31 December. It shows all revenue earned and all expenses incurred during the year, and the resulting profit or loss. Revenue minus expenses equals profit (or loss). The profit from the income statement flows into the balance sheet as the change in retained earnings — connecting the two statements.

Yes — shareholder loans are related-party transactions and must be disclosed in the notes to the financial statements. The disclosure should include: the total outstanding balance at year-end, the interest rate (or that the loan is interest-free), the maturity date or that it is repayable on demand, whether the loan is subordinated to other creditors, and the total interest accrued or paid during the year. If the loan is interest-free (or at a below-market rate), you should also consider whether this creates a deemed benefit that needs to be accounted for. EMTA pays close attention to shareholder loans — both because of the transfer pricing implications (arm’s length interest) and because undisclosed shareholder loans are a common bookkeeping error. We ensure correct disclosure and appropriate accounting treatment as part of our annual report preparation.

Under the Raamatupidamise seadus, the annual report must be prepared in Estonian. For e-residents and international founders who are not Estonian-speaking, this creates a practical challenge — the e-aruandlus portal is primarily in Estonian. We prepare the entire annual report in Estonian on your behalf, including the management report (tegevusaruanne) narrative. If you want a parallel English version for your investors or internal use, we can provide an English translation of the key financial statements and notes as a separate document — this is not filed with the Äriregister (which only accepts Estonian) but serves as your internal reference copy.

For a micro-entity OÜ with clean, complete bookkeeping in Merit Aktiva, annual report preparation typically takes 5–10 working days from when we begin: 1–2 days to review the trial balance and post year-end adjustments; 1–2 days to compile the financial statements; 2–3 days to prepare the notes (more complex notes, such as related-party disclosures and fixed asset tables, take more time); 1–2 days to draft the management report and prepare the shareholder resolution; 1 day for submission. For small companies with more complex operations, allow 10–15 working days. The critical path item is usually getting the shareholder resolution signed — we prepare this in advance and circulate for signature early. If the bookkeeping is not complete or requires a catch-up, the timeline extends accordingly.