Do you need an accountant? What can you do yourself?

Whether you need an accountant depends mostly on your legal form and turnover: for a private limited company (UAB) an accountant is practically essential, while a sole activity (individuali veikla) or a small partnership (MB) with no employees you can often handle yourself — at least at the start. A UAB requires double-entry bookkeeping, mandatory annual financial statements and a corporate income tax (CIT) return, so mistakes are expensive. Sole-activity accounting fits into a simple income–expense journal you can realistically fill in yourself, and a business certificate (verslo liudijimas) has the lightest handling of all — a fixed fee and basic income tracking.

In this article we will look at what each form requires in bookkeeping, what you can do on your own, where it is worth hiring a specialist and which deadlines await you. All rates, thresholds and amounts here are indicative (2026) — always verify the current figures at VMI, "Sodra" and the Register of Legal Entities. If you are still choosing a legal form, start with the general guide how to start a business in Lithuania in 2026 and then return to the accounting question.

An accountant is not a luxury for a UAB, and not always a necessity for sole activity — the real question is not "whether to hire" but "which part of the bookkeeping to keep yourself and which to hand to a specialist".

What determines whether you need an accountant

Three things drive the complexity of your bookkeeping, and they decide how much work you can keep for yourself:

• Legal form. Sole activity and a business certificate are activities of a natural person with minimal accounting. An MB and a UAB are separate legal entities with stricter accounting and reporting requirements. A UAB has the most complex accounting.
• Whether you are a VAT payer. The obligation to register for VAT (value added tax) arises once turnover exceeds EUR 45,000 over the last 12 months (unchanged in 2026). As a VAT payer you must keep VAT records, file returns and track the standard 21% rate plus the reduced 12% and 5% rates — an area where it is very easy to make mistakes on your own.
• Whether you have employees. Once wages appear, "Sodra" and personal income tax (GPM) on salaries make accounting much heavier. Without employees doing it yourself is far more realistic.

The simplest combination — not a VAT payer and no employees — means you can handle much of the bookkeeping yourself, even as an MB.

UAB: an accountant is practically required

A UAB is a limited-liability legal entity that must keep double-entry accounting and prepare annual financial statements. It pays corporate income tax (CIT): the standard rate is 17% (up from 16%), 7% for small companies (up from 6%), and 0% for new small companies in their first 1–2 years if they meet the conditions (fewer than 10 employees, revenue up to EUR 300,000, and not part of a group). When profit is paid out as dividends, an additional 15% GPM applies.

Double-entry accounting, tracking assets and liabilities, the CIT return and annual reporting require specific knowledge, and errors can end in penalties. So for a UAB, an accountant (in-house or an outsourced bureau) is a practical necessity — even if you issue day-to-day invoices yourself. We cover which taxes a UAB pays, and when, in the article what taxes a UAB pays in 2026; it is worth reading before you choose this form, since the UAB share capital is EUR 1,000 (at least 25%, i.e. EUR 250, before registration) and the administrative load is heavier than for sole activity.

MB with no employees: you can handle part of it yourself

A small partnership is a convenient middle option: it is a limited-liability legal entity but has no share capital requirement, founded by 1 to 10 natural persons. A small MB with no employees and not a VAT payer may use simplified accounting, so you realistically do part of the work yourself — keeping income and expense documents, issuing invoices, maintaining accounting registers.

Still, as a legal entity an MB has annual reporting to the Register of Legal Entities and tax obligations, so even in a "do it yourself" scenario it is worth consulting an accountant at least once about correct contributions and year-end closing. A practical model for many MBs: day-to-day accounting yourself, year-end closing and reports by a specialist.

Sole activity: the income–expense journal and the 30% allowance

Sole activity under a certificate has arguably the friendliest accounting for an individual. The essence is keeping an income–expense journal where you record income received and expenses incurred. You can choose deductible expenses in two ways:

• The 30% expense allowance — you automatically deduct 30% of income and need to keep no expense documents. Simple and convenient when real costs are low.
• Actual documented expenses — you deduct only what you can support with documents. Worth it when real costs exceed 30%.

GPM is calculated on the taxable profit: up to EUR 20,000 of profit — an effective rate of about 5%; from EUR 20,000 to EUR 42,500 the rate rises gradually from 5% to 20%; above EUR 42,500 a progressive system applies (20 / 25%). "Sodra" contributions (VSD — state social insurance, and PSD — compulsory health insurance) are calculated separately: from July 2026 the contribution base for the self-employed rises to 90% of taxable income (up from 50%), and the PSD minimum is about 80.48 EUR/month. Check the exact VSD and PSD shares at "Sodra", as they depend on your situation.

What you can realistically do yourself

Regardless of the form, some tasks are entirely within your reach, and taking them on saves both time and accountant hours:

• Issue invoices — you can do this yourself and even automate the process; how to do it is covered in the article invoice automation.
• Keep the income–expense journal — for sole activity and a small MB this is a daily but straightforward routine.
• Collect and organise documents — receipts, invoices, contracts; order here makes every later accounting step easier.
• Track the VAT threshold — watch whether you are approaching EUR 45,000 over 12 months so you register in time.
• Use accounting software — many everyday actions are done independently within the program.

What is worth leaving to a specialist: UAB double-entry accounting, VAT and payroll accounting, year-end closing and returns — in these areas a mistake costs more than the accountant's service.

Example: sole-activity accounting with the 30% allowance

Suppose over the year you earned EUR 15,000 from sole activity and do not want to track actual costs:

• You apply the 30% expense allowance: deductible amount — EUR 4,500 (30% of EUR 15,000).
• Taxable profit — EUR 10,500 (15,000 − 4,500).
• Since the profit does not exceed EUR 20,000, an effective GPM of about 5% applies — roughly EUR 525 of GPM.
• On top of that, "Sodra" contributions (VSD and PSD) are calculated on the base mentioned above; check their exact amount at "Sodra".

All of this is a few lines in the income–expense journal that you realistically enter yourself. If you chose actual expenses, you would only need to collect the supporting documents. It is precisely because of this simplicity that an accountant is often not necessary for sole activity — a tidy program and one consultation at the start are enough.

Key deadlines: by when and to whom

Even when you keep the books yourself, you must observe a few dates — worth marking in the calendar in advance:

• Annual report to the Register of Legal Entities — by 30 June (for the calendar year). Relevant to legal entities: MBs and UABs.
• CIT (corporate income tax) return to VMI — by 15 June. Relevant to companies paying corporate income tax.
• VAT returns — filed periodically if you are a VAT payer; check the schedule at VMI.

Missed deadlines mean late-payment interest and penalties, so reporting dates are often exactly the line at which "do it yourself" is worth turning into cooperation with an accountant.

Accounting software or an accountant — how to combine them

Often this is not an either/or. Accounting software is great for the daily routine — invoices, the journal, documents — while an accountant is needed for the more complex areas and year-end closing. How to choose and where the line runs, we compare in the article accounting software or an accountant. A practical rule: the simpler the form (sole activity, a small MB with no employees and not a VAT payer), the more the software handles; the more complex it is (UAB, VAT, employees), the more you need a specialist.

Check your numbers with calculators and official sources

Before you decide whether to keep the books yourself, run your own situation. If you are approaching EUR 45,000 in turnover or have already exceeded it, the VAT burden changes — calculate prices with the 21% and reduced rates using the free VAT calculator and always verify the current thresholds at VMI and "Sodra". That way you will immediately see whether your accounting fits a "do it yourself" scenario or already calls for a specialist.

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

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