Commerce is an important economic sector in Estonia, encompassing various areas of activity including retail, wholesale, export, import, and e-commerce. Estonia’s location in the Baltic Sea region and its membership in the European Union make it an attractive destination for international trade and investments. As a result, numerous transactions take place in the Estonian commerce sector every day, involving the buying and selling of goods and services. Additionally, businesses in Estonia widely utilize e-commerce channels, which are identified as a rapidly emerging trend according to studies.
Although the salaries of commerce workers are not particularly high (the average gross salary in the second quarter of 2023 was 1341 euros per month), and there are also labor-related challenges, the commerce sector remains a significant employer in Estonia, with nearly 94,000 people working in the industry. Therefore, it can be said that commerce is an important field for accounting firms as well.
Specifics of accounting in commerce
Since the same laws and regulations apply to commerce companies in Estonia as to other economic entities, companies must adhere to all local and international legal acts and maintain their accounting records accurately and transparently. In order for commercial activities to be successful and efficient, companies need reliable accounting software and professional accounting services. It is good to note that Leinonen Estonia boasts nearly 30 years of experience in this field. In the spring of 2016, the company was recognized with the ISO quality certificate, being the only accounting service provider in Estonia at the time to meet the standards of the international standard.
One of the goals for a business seeking accounting services should be to find a trustworthy accounting firm that adheres to all aspects from the Accounting Act – such a choice ensures credibility for the merchant as well.
Adjust financial plans according to market changes
Given that economic and trade conditions can change over time, and commerce faces periodic challenges, it is important to note that a partner with extensive financial experience can provide the business with greater confidence.
In accounting, it is crucial to understand the impact of the economic environment on commerce companies – for example, an economic downturn can affect revenue and financial situation. Therefore, accounting specialists can assist companies in adapting financial plans to changing conditions over time.
Due to the high volume of transactions inherent in commerce, in addition to the movement and tracking of inventory, it falls within the expertise of a professional accounting firm to help companies automate accounting processes, thereby reducing common human errors. Additionally, a quality firm can provide specialized software needed in commerce, such as sales and inventory programs. Accountants must be familiar with various accounting and inventory software and be able to manage and utilize them effectively.
In conclusion, the commerce sector presents accountants with several interesting challenges and opportunities, particularly in areas such as automation, technology utilization, compliance with laws, and coping with the economic environment. Accountants play a crucial role in companies’ financial management, and professional accounting also has a significant contribution to ensuring the growth of commerce.
