Outsourced Accounting for Lithuanian Companies

Why Foreign-Owned Lithuanian Companies Outsource Accounting

The decision to outsource accounting rather than employ an in-house accountant is straightforward for most foreign-owned Lithuanian companies in the early and mid-stages of their operations. The economics, the expertise requirements, and the operational simplicity all favour outsourcing — at least until the company reaches the point where accounting complexity and volume justify a dedicated in-house function.

Cost comparison: outsourced vs. in-house

A qualified Lithuanian accountant capable of managing all aspects of a foreign-owned company’s accounting — VAS bookkeeping, VAT returns, GPM and SoDra declarations, CIT return, management accounts in English — earns €1,400–€2,200 gross per month in Vilnius. The total employer cost (including social insurance contributions of approximately 4.26%) is €1,460–€2,294 per month. For a company with a relatively low transaction volume that does not justify a full-time dedicated accountant, an outsourced accounting retainer at €250–€500 per month provides equivalent or better coverage at a fraction of the cost.

Expertise and coverage depth

An in-house accountant is a single person with a defined skill set. Outsourced accounting provides access to a team — with expertise in bookkeeping, tax compliance, management reporting, VMI correspondence, payroll, and, where needed, more complex matters such as transfer pricing, IFRS adjustments, and statutory audit liaison. When the in-house accountant is on leave, sick, or resigns, the company’s accounting obligations continue. With outsourced accounting, the service continuity is built into the engagement — there is always a qualified accountant available.

Regulatory awareness — keeping current

Lithuanian tax law and accounting standards change regularly — VMI issues interpretations, the VAT law is updated, SoDra contribution rates are revised annually, and the accounting standards board updates VAS. An outsourced accounting team that works across multiple Lithuanian companies is immersed in these changes as they happen. An in-house accountant working alone may miss a regulatory change or apply a new rule incorrectly until the error is discovered — often only during a VMI audit.

When in-house makes sense

Outsourced accounting makes most sense when the company has fewer than approximately 15–20 employees, fewer than 100–150 accounting transactions per month, and does not have complex accounting requirements (no significant construction-in-progress, no large inventory, no complex financial instruments). At the point where transaction volume and complexity justify a dedicated in-house accountant — typically at 20+ employees or 150+ monthly transactions — the economics shift. We advise clients proactively when their growth suggests that an in-house hire would be appropriate, and we support the recruitment and handover process.

What the Accounting Retainer Includes

The standard accounting retainer is a comprehensive package — everything a Lithuanian company needs for full accounting and tax compliance. The items below are included in the monthly retainer fee, with no additional charge for routine execution of each item.

Monthly bookkeeping

All transactions of the company during the month are recorded in the accounting system under the Lithuanian Business Accounting Standards (VAS). This includes: recording sales invoices issued by the company; recording purchase invoices received from suppliers; bank transaction reconciliation (every transaction on the company’s bank statement matched to a document); payroll entries; accruals for expenses incurred but not yet invoiced; and any month-end adjustments required for accurate period-end reporting. We use cloud-based accounting software (Rivile, Scorpion, or another established Lithuanian accounting platform, depending on client preference) that provides the company’s management with online read-access to the accounts at any time.

Monthly tax filings

All recurring tax filings required each month are prepared and submitted through VMI’s EDS portal and the SoDra portal as part of the retainer:

• Monthly VAT return (FR0600) — due by the 25th of the following month; for VAT-registered companies
• Intra-Community supplies declaration (FR0564) — where the company has intra-EU B2B supplies
• GPM withholding declaration (FR0573) — due by the 15th of the following month; where the company has employees
• SoDra monthly earnings report (SAM) — due by the 15th of the following month; where the company has employees
• CIT advance payment calculation and filing (FR0430) — quarterly; based on prior year CIT

Monthly management accounts

A management accounts pack is delivered to the company’s designated contact by the 15th of the month following each month-end. The standard pack includes: a balance sheet; a profit and loss account; and a bank reconciliation summary. Where the parent company requires a specific format — IFRS-adjusted accounts, a particular chart of accounts mapping, or a consolidation data pack — this is established at the onboarding stage and maintained consistently throughout the engagement.

Year-end package

At year-end, the retainer covers the annual statutory financial statements preparation and filing cycle:

• Annual financial statements under VAS — balance sheet, income statement, and notes in the format appropriate to the company’s size category
• Shareholder approval documentation — written resolution or AGM package approving the annual accounts
• Centre of Registers filing — electronic filing of the approved annual statements by 30 April
• Annual CIT return (FR0702) — preparation and VMI submission by 15 June
• Annual GPM reconciliation — preparation and VMI submission by 15 February

VMI and SoDra correspondence

All VMI queries and SoDra queries received during the retainer period are managed as part of the standard fee. We monitor the EDS portal and respond to VMI queries within 2 business days. For queries that require substantive analysis or dispute escalation beyond a standard information response, these are handled under the tax advisory add-on pricing.

Retainer Plans

Three standard retainer plans cover the range of Lithuanian company sizes and complexity levels. All plans can be customised with the add-on services listed in the pricing table.

Plan Comparison

Onboarding: Getting Started in 3–5 Business Days

The onboarding process is structured to get the accounting function operational before any filing deadline is missed. For a company starting a new retainer mid-year, we ensure that all prior-period filings are current and that the accounting records from the prior months are reconciled before we take responsibility for ongoing compliance.

What we need from you at onboarding

• Company registration documents — JAR extract; articles of association; VAT certificate (if registered)
• Prior period financial statements — the most recent filed annual accounts; or, for a new company, the initial share capital payment documentation
• Prior period tax filings — VAT returns, GPM declarations, and CIT returns for the current year up to the handover date
• Bank statements — the full prior period to the handover date; ongoing access to bank statements via read-only bank portal or monthly statement export
• Supplier invoices and client invoices — all documents for the current year to the handover date
• Employee list — for payroll setup: names, positions, salaries, NPD declarations, and SoDra registration confirmations
• Parent company reporting requirements — the specific management account format, chart of accounts mapping, and any consolidation pack template

What we do at onboarding

• Set up the accounting system — chart of accounts aligned to VAS and to the parent company’s reporting requirements
• Enter opening balances — for companies with prior accounting history, entering the opening balance sheet position
• Reconcile prior period bank transactions — confirming that the prior period books are correct before taking over
• VMI and SoDra access — setting up authorised representative access to VMI EDS and SoDra portals; confirming all registrations are current
• JADIS and JAR compliance check — confirming beneficial ownership is correctly registered and JAR data is current
• Filing deadline calendar — confirming the next due date for each recurring filing and initiating any overdue returns

Pricing Summary

Monthly retainers and add-on fees. All prices are fixed — no hourly billing.

Frequently Asked Questions