Accounting software or an accountant — which to choose?

The short answer: accounting software is enough when your activity is simple — few documents, you work alone and you are not registered for value-added tax (VAT); you almost always need an accountant once you run a UAB, are VAT-registered, employ people or handle more complex transactions. Many growing small businesses end up choosing a third path — software for day-to-day invoicing plus an accountant or bookkeeping service for filings and advice — so they only pay for a person's time where a mistake would cost the most.

This article clarifies when software really is enough, when you cannot do without an accountant, and how to combine the two so you never pay for what you don't need. All tax rates, thresholds and deadlines here are indicative (2026) and for general understanding — always check the current figures with the State Tax Inspectorate (VMI), "Sodra" and the Register of Legal Entities.

Choose not by what is cheaper, but by where a mistake is most expensive — the more VAT, employees and transactions you have, the more it pays to have a person answer for the numbers.

What the choice really depends on

The decision is driven not so much by the price of software or an accountant as by the complexity of your activity. Four key factors:

• Legal form. Individual activity and the business certificate keep bookkeeping simple; a UAB requires double-entry accounting and annual financial statements. Which form to pick when you start is covered in our guide on how to start a business in Lithuania 2026
• VAT status. As long as you stay under EUR 45,000 turnover over the last 12 months and do not register for VAT voluntarily, bookkeeping is simpler; once you become a VAT payer you get regular returns and the standard 21% rate.
• Employees. The moment you hire your first employee you take on payroll, personal income tax (GPM), state social insurance (VSD) and compulsory health insurance (PSD) accounting, plus monthly "Sodra" reports.
• Transaction types. EU trade, imports, fixed assets, advances or foreign clients quickly exceed what is comfortable to handle in software alone.

When accounting software is enough

If your case is simple, modern accounting software (or even a tidy spreadsheet) can be entirely sufficient. Software fits when:

• You work under individual activity or a business certificate and are not a VAT payer.
• You use the 30% expense allowance instead of actual documented costs — the calculation is then simple and predictable.
• You have few documents per month and a clear, repeating income–expense rhythm.
• You employ no one and carry out no complex international transactions.

For example, individual-activity profit up to EUR 20,000 carries an effective GPM burden of roughly 5% — many people manage that themselves. What you can realistically handle alone and where the line sits are examined in detail in do you need an accountant and what can I do myself

When you really need an accountant

The more obligations you have and the more expensive a mistake, the more an accountant pays off. You almost always need one when:

• You run a UAB. Double-entry accounting is mandatory, annual financial statements must be filed with the Register of Legal Entities by 06-30, and the corporate income tax (CIT) return with VMI by 06-15. CIT itself is 17% in 2026, 7% for small companies, and possibly 0% for new small companies in their first two years.
• You are a VAT payer. Regular VAT returns, invoicing requirements and the 21% rate leave little room for error.
• You employ staff. Payroll, GPM and "Sodra" accounting demand accuracy and meeting deadlines every month.
• You handle complex transactions — dividend payouts (GPM 15%), EU trade, depreciation of fixed assets.

VAT and employees: where "I'll handle it myself" ends

The most common line at which self-managed bookkeeping stops being comfortable is VAT and employees. Once you cross EUR 45,000 turnover in 12 months, VAT registration becomes mandatory, and with it come regular returns at the 21% rate. When you hire someone, "Sodra" contributions are calculated from a base (the 2026 minimum monthly wage base for "Sodra" calculations is 1,153 EUR), and for the self-employed the "Sodra" base rises to 90% of taxable income from July 2026 (it was 50%). Even with no income you often have to cover the PSD minimum — about 80.48 EUR per month.

These figures are not hard on their own, but they multiply and interlock — that is exactly where software stops "thinking" for you and an accountant starts saving time and protecting you from penalties.

The combination: software for daily work, an accountant for control

A practical and common solution is to combine both. You use software every day: issuing invoices, recording expenses, seeing cash flow in real time. You bring in an accountant or bookkeeping service periodically — for returns, annual statements, tax planning and advice on complex questions. That way you pay for a person's time only where it is truly needed, while software handles the routine. Which practical tasks to line up right after incorporation are recapped in our company start checklist

Automate invoicing so bookkeeping doesn't become a burden

Whatever you choose, invoicing and document handling eat the most time. The more of this work is automated, the less both the software and the accountant's hours cost: fewer errors, less manual entry, cleaner data for returns. How to do this in practice is covered in our article on invoice automation

What it costs: the price depends on complexity, not on the label

We deliberately avoid quoting specific prices here — they vary widely and date quickly. It matters more to understand what drives the price:

• Software price is driven mostly by feature scope and document volume — basic invoicing costs less than a full package with VAT, payroll and inventory.
• The price of an accountant or bookkeeping service is driven by document volume, VAT status, headcount and transaction complexity — the more of each, the higher the cost.
• Automation lowers both — the less manual work, the cheaper both the software and the accountant's time.

Check the exact price with specific providers — it depends on your activity, not on the label of your legal form.

Example: two businesses, two decisions

Let us compare two indicative cases (2026):

• Business A — a consultant under individual activity. Not a VAT payer, working alone, using the 30% expense allowance, with annual profit of about 18,000 EUR (below EUR 20,000, so an effective GPM burden of around 5%). Few documents, simple transactions — accounting software is entirely enough for her, and an accountant is needed at most once a year to check the return.
• Business B — a UAB with two employees. It crossed EUR 45,000 turnover, became a VAT payer (21%), pays salaries and dividends (GPM 15%), and must meet the CIT return by 06-15 and annual statements to the Register of Legal Entities by 06-30. Here an accountant is essential, and software becomes the tool that feeds them clean data.

The line between these scenarios is not one fixed sum — it depends on profit, cost share, VAT status and employees. So run the numbers for your own case before deciding.

Check the numbers and the deadlines

Before you settle on software, an accountant or a combination, it is worth calculating your own taxes and cash flow. Start with the free set of calculators, and always check the current thresholds, rates and filing deadlines with VMI and "Sodra".

Disclaimer: all rates, thresholds and deadlines in this article are indicative (2026) and for general understanding only — this is not tax or legal advice. Always verify the current figures at the official VMI, "Sodra" and Register of Legal Entities sources, or consult an accountant.

web1o helps small businesses put their day-to-day processes in order — from a fast website to automated invoices, so that both software and an accountant cost less. Start with the free set of calculators and, if you want a clear plan for your own case, book a free consultation.