Basics of business accounting and finance in Finland

Like all other Schengen countries in the European Union, all people and entities in Finland must keep accounting books and records.

It is the responsibility of a company’s management to keep accounting up to date. From the start of a business, a company must keep track of its financial statements. These must be completed and compiled for each accounting period in Finland and submitted to the Trade Register of Finland (that’s their government’s Tax authority and department).

Of course, proper accounting helps to make your business run smoother and stronger. Knowing your company’s financial standing will help you to better make decisions on the products, services, marketing, and other aspects of the business.

Look into the business sectors on peer review websites and platforms such as Suomiarvostelut to investigate the various accounting services and processes. You will likely come across a company called eTasku. By reading up about this company, you will learn about its products, services and customer services so you will know better about what to expect when engaging with them for business for your company.

The basic accounting records to be kept and updated by companies are expense accounts, income statements, financial statements, corrections and adjustments for VAT, all transfers, and supporting documents such as invoices and receipts.

If you are not familiar with accounting processes and procedures, you can outsource that function of your business to a third party that specializes in that: hiring a business administrator and accounting firm will help to streamline your business operations and day-to-day activities so that you can keep an eye focused on your running your business.

The primary function of accounting is to provide data for VAT accountability, declaration and payment. If that is in order, you will have a lot less stress in your business life to handle. Instead of rushing to file these documents once a year, rather prepare these in segments by month or quarterly. That way you are on top of the accounting duties and responsibilities.

Called “Reskontra” in Finnish, the ledger and principal books are most important for those accounting functions. These are the list of the company’s transactions – credit and debit – that it has conducted in business. A sales and purchases ledger is also important to update for payment control purposes.

VAT in Finnish is to be reconciled monthly for receivables and payables. These must be recorded with the Trade Register, too.

Does your business have a cash book? Don’t forget to keep that up to date for the Trade Register as well.

Finland is great for business and economic growth. It is an industrialized nation with a strong focus on technology. It might have a population of 5.5 million, but it is regarded as the gateway for internationalization for companies. Consider the story of Nokia which started out as a small company in 1865 became one of the leading companies in the development of mobile phones and smartphones – and what most people don’t know is that Nokia also engineered the framework for mobile phone technology.

With Europe at its doorstep, Finland is a great country for businesses to grow and thrive.

With stable politics, low corporate tax, industrialized workforce, and infrastructure, it is a booming country.