Basics
What’s the Accounting Routine?
In Estonia, accounting is done monthly, regardless of your sales or revenue, especially when you have VAT. Therefore, our accountants must keep your business's books up to date and submit the appropriate reports to the tax authorities monthly. Still, they cannot do it out of thin air!
At the beginning of the month, they need access to documents from the previous month, namely, the invoices (sales and purchase invoices) and the bank movements (or bank statements) of the business during thatFew readersYour TO-DO list
It is helpful to have a TO-DO list to remember the important dates of the accounting routine:
From the 1st to the 5th of the month: upload all invoices (and optionally bank statements of the previous month)
Day 10th: if you have to pay TSD taxes (salaries and dividends), you will be asked to pay for them up to the 10th of the month.
Day 20th: if you have to pay VAT taxes, you will be asked to pay for them up to theFew readersReports & Taxes
Once we submit your business's VAT and TSD reports, you may be required to pay taxes as a result of the operations performed by your business during the period.
Suppose you collected more VAT from customers than you paid for. You will need to pay the remaining VAT to the authorities after submitting the VAT report.
If you distributed dividends or paid salaries to members of the board or Estonian employees, you will need to pay taxes (the TSD report).
Don't worry! Our accounting team will caFew readersWhat is Companio's Accounting Guardian?
What is Companio's Accounting Guardian?
Companio's Accounting Guardian is your vigilant partner in maintaining the health of your business's financial records. It's a proactive system designed to automatically detect potential issues with your invoices and bank accounts, ensuring a seamless and error-free accounting experience.
How Does Accounting Guardian Benefit You?
Early Issue Detection: Accounting Guardian diligently scans your uploaded invoices, identifying any discrepancFew readersUnderstanding Deductible and Non-Deductible Business Trip Expenses
1. What expenses are deductible on a business trip?
Deductible business trip expenses include costs directly related to your travel such as accommodation and transport expenses (including flights). To ensure these expenses are deductible, it is essential that you obtain and retain valid invoices. Please upload these invoices under the "Purchases" section of the Companio dashboard for proper accounting and reimbursement.
2. Which expenses are non-deductible and how are they handled?
Non-Few readersWhat Is A Business Trip?
A business trip is defined as travel undertaken for business purposes that serves the company's interests. Both company members (shareholders and board members) and employees—including contractors—can go on business trips, though contractors are not eligible for daily allowance.
To qualify as a business trip, it must meet the following criteria:
There is a clear business purpose behind the trip.
The trip has well-defined start and end dates.
It involves travel between two diFew readers
Invoices
What Documents Does My Company Need for Amazon FBA Accounting?
You'll need four types of documents:
Sales and VAT Report: This report, provided by the external provider you hired, helps understand global sales and VAT across EU countries. Amazon doesn't provide it. You should give us:
A report of all VAT sales submitted in countries where you're VAT registered.
A similar report from your provider.
Transactions Report: Also from your provider, it categorizes transactions by B2C/B2B, VAT, and country.
Amazon Purchase/Expense InvoiceFew readersHow to Upload My Invoices to Companio Monthly?
Uploading your sales and purchase invoices and keeping the monthly accounting up to date is very easy if you do it with Companio!
These are the steps to follow:
Whether you want to upload your sales or purchase invoices, go to the left section and choose the respective tab.
To upload sales invoices, select “upload” and drag and drop your files. You can select whether you want to upload them for the current or previous month.
For purchase invoices, click on the "Upload invoicFew readersDuplicate Error Message When Uploading Invoices
While uploading invoices to our platform, you may encounter an error message indicating that the invoice you are trying to upload is already duplicated. We want to clarify how this process works:
The system not only checks the physical file name but also performs an internal check of the file's content. This means that if you receive a duplication notification, it could be because not only does the file name match but also because the content of that invoice is already recorded in our system.Few readersEmail Invoice Dropbox: Automating the Sending of Your Invoices via Email
Imagine 2 possible scenarios:
Your company is paying a subscription for a service that sends you invoices every month by email. This means that every month you have to receive the email, download the invoice, access Companio and upload the invoice to the "Expenses" section.
Your online store generates an email with a sales invoice every time a customer buys one of your products. Upon receiving this email, you must save the document on your computer and upload it later to Companio.Some readersHow To Uplaod Invoices For Payments For Deferred Payment Platforms With Credit Such As Google Ads
Platforms such as Google Ads and others are what we call "Deferred Payments Platforms". In this FAQ, we explain how to obtain and upload the right invoices for these platforms.
Understanding Invoicing for Deferred Payment Platforms
Some platforms operate on a deferred payment model, such as Google Adwords. In this system:
Customers make payments that are credited to their accounts.
The platform deducts from this credit as services are utilized. Fees, discounts, refunds, and taxes maFew readersHow to Appeal the Rejection of a Document in Companio?
Has your invoice been rejected, and do you believe there has been a misunderstanding? Here's how to appeal the rejection of a document in Companio:
Steps:
Log in to Your Account: Access your Companio account using your credentials.
Go to the Invoices Section: Navigate to the "Invoices" section on the main dashboard.
Find Your Rejected Document: Rejected invoices will be clearly marked in the corresponding section, either "Purchases" or "Sales."
Review the ReasoFew readersCan I Deduct Business Rides On Apps Such As Uber, Bolt or Lyft?
Yes, trips for business reasons are deductible. However, you need to get a proper invoice from the ridesharing app, not just a trip summary or trip receipt.
receipt from Lyft
Some providers such as Bolt will give you an invoice right away, but others such as Uber or Lyft will only give you a summary with the cost of the trip. That is not a valid invoice.
To get proper invoices, you neeFew readersWhat Can I Do If My Invoice Has Been Rejected?
If your invoice has been rejected or deemed invalid, you will receive an email informing you of the situation and which invoice or invoices are affected.
The first step is to understand why the rejection occurred. Generally, this is because the uploaded documents are not valid or correct invoices. They may be screenshots of payments, personal expenses (such as coffee, meals, or cinema tickets), low-quality photos of receipts, or unreadable docuFew readersHow To Get Proper VAT Invoices From Google One
Google One is a cloud storage subscription service by Google. While it’s convenient, especially for Android users, obtaining VAT-compliant invoices from Google can be tricky. In this guide, we explain how to ensure your Google One invoices are issued correctly so you can upload them to Companio and deduct your subscription expenses for your business.
Invoices for Personal Use vs. Business Use
For your Google One subscription to be tax-deductible, the invoices must be issued to your bFew readers
Bank Reconciliation
Why Should I Increase the Share Capital Instead of Making a Loan to My Company?
Lending personal funds to the company may seem like a quick solution to obtain additional funds, but it can entail several disadvantages and significant financial risks. Here's why increasing the company's share capital is a much more beneficial and secure alternative:
Financial Responsibility and Risk:
When you lend money to the company, this loan becomes a financial obligation of the company to you as the lender. This means you become a creditor of the company and are exposed to aFew readersWhich Transactions Need Document Matching for Bank Reconciliation?
Several types of transactions require document matching for bank reconciliation. The following matching types may be encountered:
Sales invoice: This refers to an incoming transaction resulting from a sale. An invoice containing the customer's data is required to reconcile this type of transaction,
Purchase invoice: This refers to an outgoing transaction from a purchase. An invoice or receipt containing the seller's data should be provided to reconcile this type of transaction.Few readersMatching Options for Transactions and How to Choose the Right One
Accurately matching your transactions is essential for maintaining clean financial records, ensuring seamless bookkeeping, tax compliance, and providing a clear overview of your business finances. Below, you'll find various matching options available in Companio, each serving specific purposes.
Sales Invoice:
Description: Matches incoming transactions with sales invoices issued to your customers.
Use to: Match transactions with invoices for digital services or goods delivered by yoFew readersI Charged a Non-Deductible Expense to the Business, What Can I Do?
It's crucial to maintain a clear distinction between your business and personal finances for accurate accounting and tax reporting. Non-deductible expenses, such as personal purchases like meals, drinks, clothes, or other non-business-related items, should not be charged to your corporate account. Adhering to this practice ensures financial transparency and compliance with tax regulations.
What should I do if I've charged a non-business related expense to my corporate account?
If you findFew readersHow To Match An Invoice I Paid With My Personal Funds?
Imagine the situation: you go on a business trip to Rome to work for a client, and you inadvertently pay for the flight tickets with your personal card (or you don't have access to your business card at the moment). As you know, this is totally fine, it's called Out of pocket expenses, and you can refund the money later from your corporate account to your personal account.
But how do you match the invoice, given thatFew readersHow do I match sales received in payment gateways such as Stripe with invoices and payouts?
This FAQ aims to clarify the process of matching bank transactions with invoices in the following scenario:
You utilize a payment gateway, such as Stripe, to handle the sales revenue from your customers. This is where you receive your sales.
Your company maintains a corporate bank account, for instance, with Wise.
Periodically, the payment gateway initiates a payout to your corporate bank account. This payout encompasses all sales from a specific period, minus any associated fees and cFew readersMatching Internal Movements Of Funds And Refunds For Personal Expenses
When matching transactions that are internal movements between accounts belonging to your business, or a refund of a personal expense that you inadvertently paid with your business card, there are some aspects to consider:
Matching internal movements of funds between accounts belonging to your business
As explained here, this type of matching should be used to indicate transfersFew readersPrecision Matching: Understanding Matching Rejections With Account Guardian
What is Precision Matching?
Precision Matching is an advanced feature within our Accounting Guardian that ensures the accuracy of transaction matches before finalizing them in your account. This functionality checks that transaction details align with the accompanying documents based on specific rules, enhancing the reliability of your financial records.
Precision Matching
HoFew readersI Can't Unlink A Transaction That Was Matched As Non-Business Expense By The Accountant
Why can’t I unlink a transaction that has been matched as "Non-business related expenses" by the accountant?
When our accountants certify that a purchase is a non-business related expense, they mark it as such in the corresponding report. This process is essential for maintaining accurate financial records and compliance with tax regulations. Here are the primary reasons why a transaction may be marked and not unlinked:
Personal Expense: The transaction is likely a personal expenseFew readersHow To Match One Invoice With Multiple Transactions Or Vice versa?
To match one invoice with multiple transactions, follow these instructions:
1. Upload your invoice to the Companio dashboard.
Go to the Sales or Purchases section (depending on the type of your invoice) and use the "Upload" button to go to the document uploading area. Drag and drop your invoices there. Ensure you note whether you are uploading the invoice for the current month or the previous one to easily locate the document later in your list of invoices.
2. Match the invoice wiFew readersHow Do Loans Work In Companio. Can I Lend Money To My Business?
Companio offers flexible support for three types of loans:
Loan from a Board Member to the Company: A board member lends money to the company.
Intercompany Loan (from Your Company to Another Business): Your company lends money to another business.
Loan from Another Business to Your Company: Another business lends money to your company.
Unsupported Loans: Loans from your company to an individual are not permitted, as this would require a financial license (similar toFew readers
