How to choose an accountant as an Estonian e-resident

Choosing an accountant is one of the most important operational decisions for an e-resident company in Estonia, but it is not always necessary. Many e-residents run their companies with minimal help by relying on guidelines, community advice, and accounting software.

This article explains when an accountant is needed, how to compare providers if you choose one, and how to keep your company compliant with or without a traditional accountant.

You might not need a full-time accountant

For small or simple companies, hiring a dedicated accountant in Estonia is often optional. Many e-residents successfully handle bookkeeping and compliance themselves using:

• Guidelines from the e-residency program

• Advice from other e-residents (Facebook group for e-residents )

• Cloud-based accounting platforms

Popular tools include Merit, Directo, SimplBooks, SmartAccounts, Ellrex, Erply, or Ann., as well as some international accounting software. These tools can handle bookkeeping, VAT reporting, and annual report preparation with less hands-on intervention.

Start with scope, not price

If you choose to hire an accountant, ask for a clear description of what is included:

• Bookkeeping frequency (monthly, quarterly)

• VAT reporting in Estonia, if applicable

• Annual report preparation and submission

• Payroll or dividend reporting

Also check what is not included to avoid misunderstandings.

Understand why e-resident accounting can be different

Accounting for e-residents often costs more than for locals because service providers have legal obligations toward the Rahapesu Andmebüroo (Financial Intelligence Unit). This means:

• More detailed onboarding checks

• Ongoing monitoring obligations

• Higher compliance risk if information is incomplete

Even if you hire an accountant, these responsibilities influence pricing.

Check real experience with e-residents

Not every Estonian accountant works regularly with e-residents. Look for experience with:

• Non-resident founders

• International payments and income sources

• Cross-border VAT situations

Practical experience matters more than marketing claims.

Clarify communication and responsibilities

Discuss upfront:

• How communication works and through which channels

• Expected response times

• What happens if documents are late or missing

Clear expectations prevent most common problems.

Compare pricing structures, not just monthly fees

Ask:

• What triggers additional charges

• Whether pricing is fixed or activity-based

• How changes in activity affect costs

Predictable pricing is often safer than low entry prices with hidden add-ons.

Know the limits of Estonian accounting

An Estonian accountant usually handles only Estonian accounting and reporting, not personal taxes in your home country. Because of this, some e-residents also work with an accountant locally. However, for simple companies, software and guidelines may be enough.

Ask about cross-border coordination

If applicable, check whether the provider:

• Provides documentation for foreign tax reporting

• Coordinates with accountants in other countries

• Clearly explains where their responsibility ends

  
  

Final checklist before choosing

• Do I clearly understand what is included and excluded?

• Do they explain compliance and AML obligations openly?

• Do they have real experience with e-residents?

• Are communication rules clear?

• Is pricing predictable?

• Can I manage my company myself with software and guidelines instead?

  
  

Final thoughts

Many e-residents successfully run small or simple Estonian companies without a full-time accountant, relying on software like Merit, Directo, SimplBooks, SmartAccounts, Ellrex, Erply, or Ann., along with community guidelines. If your company is more complex, an accountant helps reduce risk and ensures compliance. In any case, clarity, realistic expectations, and understanding legal responsibilities are key to managing your Estonian company effectively.