Best Accounting & Auditing Lawyers in Biržai

About Accounting & Auditing Law in Biržai, Republic of Lithuania

Accounting and auditing laws in Biržai, Republic of Lithuania, are designed to ensure financial transparency, accuracy, and compliance with the broader legal standards set by Lithuanian national law and European Union regulations. All businesses, regardless of size and structure, are required to maintain proper financial records and regularly submit to accounting and auditing processes to verify the accuracy of their financial statements. These laws apply to sole proprietorships, partnerships, corporations, and even non-profit organizations. The primary aim is to foster economic trust and protect stakeholders such as investors, employees, tax authorities, and the public.

Why You May Need a Lawyer

Legal assistance in accounting and auditing can be essential for several reasons. Individuals and businesses may require a lawyer to:

• Understand the complex accounting and audit regulations applicable in Biržai
• Ensure compliance with Lithuanian corporate reporting requirements
• Respond to an official audit or investigation by governmental bodies
• Resolve disputes with auditors, accountants, or tax authorities
• Navigate suspected financial irregularities or allegations of mismanagement
• Advise during mergers, acquisitions, or restructuring processes that require due diligence
• Assist with issues related to VAT, tax planning, or tax audits
• Represent clients in court or before regulatory agencies if financial compliance is challenged
• Handle cross-border accounting or auditing matters, considering Lithuania’s EU integration

A qualified lawyer not only provides clarity on regulations but also helps protect from potential legal risks, penalties, or business disruptions.

Local Laws Overview

In Biržai, accounting and auditing activities are governed by the primary legislative frameworks of Lithuania as a whole, notably the Law on Accounting, the Law on Audit, and provisions in the Civil and Criminal Codes regarding financial reporting and compliance. These laws require companies to maintain accurate accounting records, prepare annual financial statements, and have them audited (where applicable) by certified auditors.

Key points include:

• Licensed accountants and auditors must adhere to the accepted accounting principles in Lithuania, which are harmonized with International Financial Reporting Standards (IFRS) for public interest entities.
• Small and medium enterprises (SMEs) have simplified requirements, but still must comply with local accounting standards.
• All legal entities are obligated to submit annual financial statements to the State Enterprise Centre of Registers (Registrų Centras).
• Certain businesses, particularly larger or public interest entities, are mandated to undergo statutory audits by licensed auditors.
• Failure to comply can result in administrative sanctions, fines, or in severe cases, criminal liability.
• The State Tax Inspectorate (Valstybinė mokesčių inspekcija) performs audits and investigations for tax compliance.

Frequently Asked Questions

What types of businesses are required to keep accounting records in Biržai?

All entities engaging in economic activities, including small private enterprises, partnerships, corporations, and NGOs, must keep accurate accounting records in accordance with Lithuanian law.

Do all businesses need to be audited in Biržai?

Not every business requires a statutory audit. Audits are generally mandatory for public interest entities and certain companies exceeding specific thresholds in turnover, assets, or number of employees. SMEs may have simplified obligations.

How often must financial statements be prepared and submitted?

Legal entities must prepare annual financial statements and submit them to the State Enterprise Centre of Registers within set deadlines after the end of the financial year.

What happens if my business fails to comply with accounting requirements?

Failure to comply can lead to administrative fines, additional audits, suspension of business activities, or, in serious cases, criminal charges for fraud or intentional misrepresentation.

Is it necessary to hire a licensed accountant or auditor?

While small businesses may handle their own accounting, employing a licensed accountant or auditor ensures compliance with complex regulations and reduces the risk of legal issues.

Can accounting records be kept electronically?

Yes, electronic record-keeping is permitted, provided it meets data integrity and accessibility requirements set by Lithuanian regulations.

What is the role of the State Tax Inspectorate in audits?

The State Tax Inspectorate conducts routine and targeted tax audits, ensuring businesses comply with Lithuanian tax laws, report income accurately, and pay the correct taxes.

How are disputes with auditors or accountants resolved?

Disputes can often be settled through direct negotiation or mediation. If not resolved, legal proceedings in local courts or through regulatory authorities may be necessary.

Are there obligations regarding audit reports in foreign languages?

Audit reports for official use must generally be prepared in Lithuanian. If documents originate in another language, certified translations may be required for submission.

Who supervises the accounting and auditing profession in Lithuania?

The Chamber of Auditors of Lithuania and the Ministry of Finance oversee professional standards for the accounting and auditing sector, including licensing and disciplinary actions.

Additional Resources

To obtain further information or guidance on accounting and auditing matters in Biržai, consider reaching out to:

• State Enterprise Centre of Registers (Registrų Centras) - for company registration and submission of financial statements
• State Tax Inspectorate (Valstybinė mokesčių inspekcija) - for tax-related matters and audits
• The Chamber of Auditors of Lithuania (Auditorių Rūmai) - for issues related to licensed auditors and professional standards
• Ministry of Finance of the Republic of Lithuania
• Local business support centers and accounting associations in Biržai
• Legal aid offices or private law firms specializing in corporate, accounting, and tax law

Next Steps

If you require legal assistance in accounting and auditing in Biržai:

• Gather all relevant documentation, such as financial statements, audit reports, business licenses, and correspondence with regulatory authorities.
• Clearly identify the issue or question you wish to address, whether it relates to compliance, disputes, audits, or potential penalties.
• Contact a qualified lawyer or law firm in Biržai who specializes in accounting, tax, or corporate law.
• Discuss your situation confidentially and request an initial consultation to evaluate potential risks, your rights, and the solutions available.
• Follow the professional guidance provided to ensure compliance with local laws and minimize disruption to your business operations.

Taking these proactive steps helps protect your interests, ensures legal compliance, and can prevent costly sanctions or complications down the line.