1. Lithuania >
2. Expanding a Business >
3. Accounting, Auditing and Payroll

Accounting, Payroll and HR in Lithuania

Modern economies rely on cross-border transactions and the free flow of international capital. More than a third of all financial transactions occur across borders, and that number is expected to grow. That is why it is advised, and probably in your best interest, to employ an accountant in Lithuania. They'll nearly always save money, and more importantly, will make your business in Lithuania most financially productive it can be. Used wisely, accountants in Lithuania can make you more profitable than ever.

Accountants in Lithuania provide a range of services. They can look after everything financial, from elementary book-keeping to more particular advice. You could hire accountants in Lithuania merely to prepare financial statements for your tax return, or you may require them for other added-value services such as auditing. Accounts must be audited each year unless the company or region you are based in is exempt.

A sound financial record for a company is imperative. You need to ensure you retain receipts for everything you buy. It is recommended that you keep a ledger or book with the details of what the receipt is for. Keep a record of all sent and received invoices too. These will keep you informed that you've been paid or have money owing, etc.

Ultimately, applied and diligent record-keeping will keep your accountancy costs low when setting up a business in Lithuania.

Payroll. Sometimes managing employee salaries can be a big hurdle. Typically, businesses do not bother to employ their payment professional because these services are flexibly linked to the accounting services. Nevertheless, there're few things that you should know:

Lithuanians typically work 40 hours per week, and in some cases, it may go up to 48 hours for a standard week. For any overtime, you must pay at least time and a half. Any work done on a holiday or day of rest should be paid double time. Overtime isn't very often thing and is only requested under rare circumstances.

Employees must make at least €380/month which is a current minimum wage. Bonuses are not mandatory, though terms for additional compensation can be negotiated by the employee when signing up the contract. Workers with in-demand skills will expect a fair wage for their time, and to be considered for raises every year.

Click here to Ask an Expert about Accounting, Auditing and Payroll in Lithuania