Best Accounting & Auditing Lawyers in Panevezys

About Accounting & Auditing Law in Panevezys, Republic of Lithuania

Accounting and auditing in Panevezys, one of Lithuania's major cities, operate under Lithuanian national law, harmonized with European Union regulations. Businesses and organizations are legally required to maintain transparent, accurate accounting records and subject themselves to audits where applicable. These laws ensure that financial activities are properly documented, reported, and audited to help prevent fraud and promote fair business practices. Both domestic and international businesses operating in Panevezys must comply with these standards, regardless of company size or sector.

Why You May Need a Lawyer

There are several common situations where individuals or businesses may seek legal advice regarding accounting and auditing in Panevezys:

• Establishing a new business and needing guidance on required accounting practices and record-keeping
• Dealing with audits by government authorities, including the State Tax Inspectorate and State Audit Office
• Facing disputes with partners or shareholders related to financial statements and audit results
• Suspecting fraud or other financial irregularities within a company or organization
• Compliance checks involving Lithuanian and EU accounting and tax regulations
• Preparing for mergers, acquisitions, or restructuring that require due diligence and transparent financial records
• Assisting non-profit organizations in meeting their unique reporting and auditing obligations

A lawyer specializing in accounting and auditing can help protect your interests, clarify legal responsibilities, and ensure compliance with current financial regulations.

Local Laws Overview

Key accounting and auditing regulations in Panevezys align with Lithuanian law, which itself is harmonized with EU directives. Notable legal aspects include:

• The Law on Accounting of the Republic of Lithuania applies to all entities engaged in economic activity, establishing requirements for bookkeeping and financial reporting
• The Law on Audit of the Republic of Lithuania stipulates circumstances when audits are obligatory, the qualifications of auditors, and the procedure for conducting audits
• Small businesses benefit from simplified reporting, but must still maintain accurate and honest accounts
• International Financial Reporting Standards (IFRS) may be mandatory for certain public interest entities and voluntary for others
• All companies must submit annual financial statements to the Register of Legal Entities and, where statutory thresholds are met, an independent auditor's opinion
• Strict data retention rules exist for accounting records, which must be stored for set periods and available for inspection
• Tax laws closely link with accounting requirements to ensure proper VAT, profit tax, and corporate income tax reporting

Failure to comply with local accounting and auditing laws can result in administrative penalties, financial sanctions, or criminal liability.

Frequently Asked Questions

Who is required to keep accounting records in Panevezys?

All businesses, including self-employed individuals, partnerships, companies, and non-profits, must keep accounting records in accordance with Lithuanian law.

Do all companies in Panevezys have to be audited?

Not all companies require mandatory audits. Auditing is generally required for public interest entities, large companies, and companies exceeding certain thresholds for income, employees, or assets.

What standards are used for preparing financial statements?

Most Lithuanian businesses use Lithuanian Business Accounting Standards. Public interest entities and certain other companies may be required to use International Financial Reporting Standards (IFRS).

How long must accounting records be kept?

In general, accounting documents must be kept for at least 10 years, although some records may have shorter or longer retention periods as specified by law.

What are the penalties for non-compliance with accounting requirements?

Penalties can include fines, administrative sanctions, and in cases of intentional misconduct, criminal liability for responsible individuals.

Can accounting documents be kept electronically?

Yes, Lithuanian law permits electronic accounting records as long as they meet requirements for integrity, accessibility, and security.

What qualifications do auditors need in Lithuania?

Auditors must be licensed by the Chamber of Auditors of Lithuania, meet professional education and training requirements, and comply with regular continuing education.

Who oversees the regulation of accounting and auditing professionals?

The principal bodies are the Ministry of Finance, the Chamber of Auditors of Lithuania, the Center of Registers, and the State Tax Inspectorate.

Is there legal assistance for accounting issues in English or other languages?

Many law firms and accounting professionals in Panevezys can provide services in English or Russian, though Lithuanian remains the official language for documentation.

What should I do if I suspect financial irregularities in my company?

It is advisable to contact a lawyer or a licensed auditor to review your concerns confidentially and advise on the proper steps, which could include internal investigation, reporting, or legal proceedings.

Additional Resources

If you require further assistance or information on accounting and auditing in Panevezys, consider reaching out to the following organizations:

• State Tax Inspectorate (Valstybinė mokesčių inspekcija) - for tax and related accounting guidance
• Chamber of Auditors of Lithuania (Lietuvos auditorių rūmai) - for information on licensed auditors and audit regulations
• Register of Legal Entities (Juridinių asmenų registras) - for company reporting and documentation requirements
• Panevezys branch of the Lithuanian Association of Accountants and Auditors
• Ministry of Finance of the Republic of Lithuania - for legislative updates and policy information

Next Steps

If you find yourself in need of legal assistance with accounting or auditing in Panevezys, consider the following steps:

• Identify and document the specific issue or question you are facing
• Consult with a qualified local lawyer or accounting professional experienced in Lithuanian law
• Gather all relevant documents, including financial statements, contracts, and correspondence
• Prepare a list of questions or concerns to discuss with your advisor
• Follow the legal and regulatory advice provided to ensure ongoing compliance and minimize legal risks

Engaging a professional early can help you navigate Lithuanian accounting and auditing requirements more effectively and avoid future legal complications.