Small business owners often try to wear multiple hats at once: acting as sales managers, directors, and… accountants. Unfortunately, financial management mistakes later turn into penalties from the State Tax Inspectorate (VMI) or Sodra. Here are the 3 most common mistakes:
This is a highly relevant issue for MB members and individuals running an individual activity. A company bank card is not your personal wallet. Every purchase from the company account must have a supporting document (invoice) proving that the expense was incurred to generate company income.
Accounting requires discipline. If receipts and invoices only reach the accountant on the last day of the month, there is a high risk of missing tax declaration deadlines (VAT, GPM). This not only causes unnecessary stress but can also lead to late payment interest.
In Lithuania, it is mandatory to register as a VAT payer once your revenue exceeds €45,000 (or €55,000 in certain cases) within the last 12 consecutive months. Note that this is a rolling 12-month period, not a calendar year. Missing this milestone can result in severe financial penalties for the company.
The best prevention is timely control. A professional outsourced accountant does not just enter numbers—they warn you about upcoming risks and help you legally optimize your taxes.
