Here is your first Forum » Accounting in Lithuania

A company in Lithuania must submit reports to the Tax Inspectorate, the Social Insurance Fund, the Department of Statistics, the Center of Registers, the Customs Department and the Migration Services. It can be difficult for a foreigner to keep records and bookkeeping - he needs to know the Lithuanian language, Lithuanian legislation and understand the requirements for accounting and bookkeeping. Failure to comply with the requirements for the annual report or non-payment of taxes will lead to problems with the authorities. Every Lithuanian company should have an accountant who will help prepare the necessary reports and submit them to the state authorities, as well as advise on what taxes need to be paid.

Accounting reforms in Lithuania
Lithuania has been one of the leaders in the transition to the International Public Sector Accounting Standards (IPSAS) with consolidated financial statements at the state and municipal levels. The transition to this system was a difficult task and required preparation.

The reforms included not only changing the principles of accounting, but were also aimed at improving the efficiency of the accounting function itself. Politicians at the central and municipal levels began working on reforms five years earlier. The preparatory phase included pilot programs of several public sector organizations, as well as the development of rules, detailed accounting guidelines and transition guidelines. Conducted extensive training for public sector accountants and improved standardized IT solutions. Implementing a centralized IT solution for national financial reporting for more than 4,000 government entities was another matter.

Public reception
These changes are not a painless process of transformation. They demanded a change in the qualifications of all public sector accountants and initially met with a high level of resistance. Strong political support and strong leadership from the Ministry of Finance have played a critical role in ensuring their successful implementation. There was still a one year delay from the original launch date. This was due to a lack of training on the part of the public sector organizations.

Current status and results
The system is well established and two IPSAS-based financial reporting cycles have already been prepared. To protect the reforms, the Ministry of Finance is currently in the process of amending standards and other regulations. This is the deployment of a call center support set up to handle IPSAS inquiries and on-site training to improve the quality of financial data.

Future prospects
The implementation of reforms has become one of the steps in the transformation of the state financial system. To maximize the potential benefits of this system, a country needs to have a coherent vision for public finance reform as a whole. Lithuania, by implementing IPSAS, improved the skills of public sector accountants and IT systems used for public accounting. The process is ongoing and the country is still facing many challenges; The successful implementation of IPSAS has given a decisive impetus to achieving excellence in public finance.