Some new entrepreneurs start out thinking they can save a few hundred euros a month by handling the bookkeeping and tax planning themselves. But as several examples show, what seemed like a small saving can quickly turn into a nightmare: a few thousand euros in unexpected tax liabilities, and possibly few thousand euros for legal fees.
Situations like this are more common than one might think. In international accounting, around one-third of companies seek expert help only when it is already too late. By the time they turn to professionals, the structure may already be non-compliant, reporting deadlines may have been missed, or financial inaccuracies may have accumulated to the point where fixing them becomes costly and time-consuming.
It raises an important question: should a business owner really do their own accounting, and be its international tax planner-advisor or is it wiser to hire a professional?
Easy to Start, Complex to Maintain
In Estonia, once you have your e-Residence card, setting up a company takes only about 15 minutes – it’s all digital, fast and convenient. But once your company is registered, a range of important responsibilities follow, including proper accounting, and tax planning. Even the seemingly routine steps of issuing invoices and handling taxes can conceal complexities that trip up business owners who think they are doing everything right.
As we work primarily with non-resident clients, the topic of international tax planning is always on the agenda. With foreign ownership comes the inevitability of cross-border transactions, and nearly all our clients are involved in international trade or services, e-commerce, holding structures, financing, investments, or other cross-border activities.
That’s why a deep understanding of international taxation and strategic tax planning is essential in everything we do. We know that accurate and compliant accounting is the foundation of any successful business. It’s not just about keeping the tax authorities happy – it’s about having a clear picture of your finances, your cash flows, and your company’s overall health.
What a Good Accountant Actually Does
In our daily work, we identify and keep a close eye on the most common accounting and financial questions that arise among our clients.
For every client and business owner, it is important that their accounting and financial data are accurately recorded and comply with legislation, but that is by no means the only way a good accountant can support their clients and add value.
In our practice, questions often arise regarding various expenses, changes in legislation, local and international taxation, and the management of the company’s cash flow.
Good accounting isn’t just about compliance – it’s about helping businesses make smarter financial decisions. Many of our clients’ questions are related to international taxation, foreign dividends, interests or royalties, and cross-border investments. They also often seek advice on employee matters such as salaries and payroll, contractor agreements, and other labour-related issues and costs. They have questions about changing tax laws, new reporting obligations, and other legal amendments.
Tax legislation is often complex and detailed, and frequent changes can cause uncertainty. That’s why business owners increasingly turn to both the authorities and professional tax advisors for clear guidance and practical explanations.
A good accountant can help with much more than just bookkeeping. We can:
- advise on the right company structure and tax setup;
- advise on proper and suitable jurisdictions for your corporate structure;
- explain how to classify expenses correctly;
- help you stay up to date with legislative changes;
- support you with cash flow management and international tax matters, if you have cross-border transactions, your business expands abroad or has non-resident foreign shareholders.
A reliable accountant is not just a cost – it’s an investment in the long-term success and stability of your business.
Accounting and AI
Some believe that AI will solve all problems in accounting and finance. We have observed that the common misconception “the AI and software will take care of it” is particularly dangerous in an international environment. Cross-border reporting contains details and nuances beyond the reach of standard software, leading companies to costly errors when they rely on incorrect assumptions.
The rapid rise of artificial intelligence does not make the situation any easier. AI-driven automation can lead to mistakes even faster, because while the system can perform calculations, it does not understand the regulatory context or the accountability that proper accounting carries.
This is precisely why professional accounting support from experienced local experts in Estonia is essential. Only qualified practitioners can correctly interpret the laws, meet the reporting requirements, and ensure full compliance in an increasingly complex regulatory landscape.
At the same time, we note that AI-based solutions significantly enhance the strategic and analytical role of accountants. Instead of spending hours on manual data entry and checks, our accountants can focus on consulting and strategic planning, helping our clients make more effective business decisions. Accountants are increasingly becoming advisors, consultants, and reviewers, rather than just data processors.
So, does your new business need an accountant? The answer is simple: if you want peace of mind and a solid financial foundation, then yes, it does.
The Importance of Working with Top Experts
In international accounting and financial advisory, the assistance of qualified professionals is indispensable.
Cross-border structures require proper substance, accurate reporting, and continuous compliance with increasingly strict regulatory standards. When these responsibilities are handled inadequately or by unqualified providers, the structure becomes exposed to tax audits, penalties, enhanced compliance checks by regulatory and financial institutions, delays, legal disputes, and ultimately reputational damage.
To avoid these risks, it is essential to work with experienced, top-tier professionals who understand how to design, implement, and maintain compliant international structures, including the level of substance required and the standards expected by regulators and financial institutions.
How to Choose the Right Accounting Firm
You’ll need to decide whether to partner with an accounting firm that employs multiple accountants or hire a single accountant.
Given the high volume of requests we receive for accounting services, we’ve developed a deep understanding of this important issue. For various reasons, we often assist clients in transitioning from other firms or service providers to our own. Below, there’s a link to key points to consider when selecting an accounting firm for your Estonian company. Here are the seven steps to guide you in selecting the right firm.
Seven Steps to Guide You in Selecting the Right Accounting Firm – InCorpora
We’re here to help!
If you need assistance with tax declarations or international tax planning, our InCorpora team is here to support you.
Handling accounting and tax filings for international businesses and cross-border operations requires deep knowledge of both local and international regulations – expertise we have built over many years.
We’re ready to help you build a structure that works best for you. Speak soon!
Team InCorpora
CONTACT US NOW to learn more. We would be happy to advise you!
