how to prepare your annual report

A simple guide for e-⁠residents on preparing your Annual Reports--including deadlines, documents, avoiding common pitfalls, and a handy checklist

This guest post about how to prepare your annual report was written by ann. - a simple-service annual report preparation tool, and a trusted member of the e-⁠Residency Marketplace.

Filing an annual report might sound like a chore, but don’t worry—it’s easier than you think! Whether you're an e-⁠resident running a business in Estonia or a solo entrepreneur managing everything yourself, this guide will help you breeze through the process with minimal stress. Let’s make it as simple (and painless) as possible!

Annual Report Deadline: Why Wait?

Let’s start with the basics: when is the deadline?

Every Estonian company must submit an annual report within six months after the financial year ends. For most businesses, that means June 30 is your last chance to file.

If you’re a newly established business, here’s some good news: your first report can cover up to 18 months:

• Founded before July 1 → First report is due the following year.
• Founded after July 1 → First report can be submitted the year after next.

The earlier you file, the better—you’ll avoid last-minute stress and potential penalties!

What Documents Do You Need?

Keeping your financial records organized throughout the year makes filing your report much easier. The simplest trick? Snap photos of your receipts and store them in Google Drive, Dropbox, or a dedicated folder—just remember to keep them for seven years (yes, exactly seven—it’s not just a lucky number!).

Here’s what you need to track: 

• Sales invoices – All sales invoices issued throughout the year.
• Purchase invoices – All company-related expenses, such as office rent, internet, phone bills, and other business expenses. 
• Bank statements – Proof of all your company’s financial transactions. 
• Payroll & dividends – You must file your report before paying out dividends
• Fixed asset register – Big purchases like laptops or office furniture that depreciate over time.

Common Pitfalls (and How to Avoid Them!)

Many entrepreneurs make simple mistakes when filing their reports—here’s how to dodge them: 

• Forgetting deductible business expenses – Yes, even coffee counts! Marketing, software, and home office costs are all eligible for deductions. Some of these have a limit, beyond which they become taxable. You can learn more about them in the Tax and Customs Board's handbook.
• Mixing personal and business expenses – If you accidentally paid for personal items with the company card, either pay it back or declare it as a fringe benefit. 
• Ignoring unpaid invoices – Just because a client hasn’t paid doesn’t mean you can skip recording it.
• Hitting €40,000 in revenue and forgetting VAT registration – If you reach this threshold, you must register for VAT. 
• Thinking zero revenue means no report is needed – Even if your OÜ has made no money, you still have to submit an annual report. Not doing so could lead to fines or even company deletion!

Where & How to File Your Annual Report

You can submit your report via the Estonian Business Register’s online portal. If you need accounting support, you'll find many service providers on the e-⁠Residency Marketplace.

If you’d rather skip the hassle, myannualreport.eu - also known as ann. - makes it super easy by guiding you through the process step by step. No accountant needed!

Checklist: How to Prepare your Annual Report

1. Know Your Deadline

• Deadline: June 30 (if your company's financial year runs from 1 January to 31 December); otherwise, the deadline will be 6 months after the end of your company's financial year
• New business? Check if your first report is due next year or later

2. Keep Key Documents (for 7 years)

• Sales & purchase invoices – Include unpaid ones
• Bank statements – Match transactions
• Payroll & dividends – Needed for withdrawals
• Fixed assets – Items over €500 (e.g., laptops, office furniture)

3. Avoid Common Mistakes

• Track business expenses – Marketing, software, home office
• Keep finances separate – Reimburse personal payments
• Backup documents – Use Google Drive or Dropbox
• Submit early – Avoid system glitches & fines

4. Submit Your Report

• Use myannualreport.eu to make reporting effortless!

Final Thoughts

Filing your annual report doesn’t have to be painful. Tackle it early, do it right, and move on! Think of it as a necessary business milestone—one that, when done smartly, sets you up for financial success.

Now, check “Annual Report” off your to-do list and get back to doing what you love—running your business!