A financial year (majandusaasta) does not have to match the calendar year, but changing it is a project — not a formality. It affects annual report deadlines, comparability of figures, profit allocation decisions and, sometimes, audit/review requirements. If done incorrectly, you get chaos: one period in the accounting system, another in e‑Äriregister, and reports that don’t reconcile.
Change the financial year only with a clear goal (seasonality, group alignment, investor requirements). If you change it “just because”, you risk more reporting work and less comparability.
Below is when changing majandusaasta is genuinely useful and how to handle the transition period safely — including deadlines and documentation.
In practice, before filing, verify the requirements in Commercial Code (ÄS) and Accounting Act (RPS).
When changing the period is actually useful
- Seasonal business: closing after the season can make the financial picture more meaningful.
- Group companies: aligning periods with the parent simplifies consolidation and reporting.
- The company started mid-year: sometimes an extended first period (within the rules) is practical so you don’t file a meaningless half-year report.
What changes in deadlines
The general rule stays the same: you file the annual report within the required time after the majandusaasta end date. But if you move the year-end date, the moves too. That can be convenient — and also a risk: it’s easy to forget the new deadline.filing deadline
How to do it safely (step-by-step)
- Define the goal: why you are changing the period.
- Choose the new interval (start/end dates).
- Configure the period in the accounting system (so reports are calculated correctly).
- When creating the report in e‑Äriregister, confirm the correct period is selected.
- If the period is not 12 months, explain it in notes/tegevusaruanne — otherwise a bank or investor may interpret trends incorrectly.
Risks people often ignore
- Comparability: a 9- or 15-month report cannot be compared “as is” to a prior 12-month year.
- Prepayments and cut-offs: the risk of accrual/revenue timing errors increases.
- Internal discipline: the team keeps thinking in calendar dates, while reporting follows the new period.
Mini checklist before you change
- Clear business reason for changing the period.
- Accounting and reporting are set up for the new interval.
- Impact on dividends / shareholders’ decisions is understood.
- New filing deadline and responsible person are recorded.
- You are ready to explain an “unusual period” in disclosures.
See also on blog.accres.eu
How we can help
If you want to close this quickly and avoid refiling: we can review the data, prepare the report in e‑Äriregister, help with documentation and take it to filing. Contact us.
First closing after registration: a common trap
New companies often ask: “We registered mid-year — what period do we report for?”. The answer depends on which majandusaasta is set and how you structured the first period (this should be reflected in your accounting setup). Therefore:
- check the period configured in your accounting system;
- check what e‑Äriregister shows when you create the report;
- avoid the situation where the accounting year is one thing and the register year is another.
How to explain “not 12 months” without extra text
One paragraph is enough:
- “The reporting period is X months due to a change in majandusaasta. For comparability, figures are not directly comparable to the prior period.”
This looks professional and answers half the questions upfront.
Which internal processes you need to update
- month/quarter closing calendar;
- document collection and reconciliations;
- annual report approval plan and, if needed, audit/review.
If processes stay calendar-based while majandusaasta changes, you will create gaps and overlaps.
Common mistakes
- changing the period in e‑Äriregister but not in the accounting system → numbers don’t match;
- forgetting to explain the unusual period length;
- not revisiting deadlines and responsibility.
Mini implementation plan (do it once and forget)
Week 1: decide goal and dates + adjust accounting setup.
Week 2–3: run a test report for the interval (check accruals/prepayments).
Week 4: lock the closing process and the calendar for the year.
Impact on dividends and management decisions
Profit allocation is typically tied to an approved annual report. If the period is non-standard:
- profit/loss relates to a non-standard interval;
- you can’t compare “last year vs this year” without normalizing per month.
Practical tip: when planning dividends, use a management “average per month” view and cash flow assessment — not only accounting profit.
Impact on audit/review
If you are near the audit/review thresholds (ülevaatus), changing the period may affect the indicators (for example, revenue over 15 months looks higher than over 12). Before changing the period, assess whether you might accidentally trigger an audit obligation.
FAQ
Can we change the financial year every year?
Technically yes, but it hurts comparability and raises questions. In practice, companies change it rarely and for a clear reason.
Do we need to notify EMTA?
The annual report is filed to the register. However, changes in accounting periods can indirectly affect tax periods — check your specific case.
Can the first period be longer than 12 months?
Sometimes it can make sense for a new company, but it depends on how majandusaasta is set up and the accounting rules. The key is that the period is clearly reflected in the system and in the report. Related topic: profit allocation decision.
Do we need to update contracts or internal reporting?
If you use annual KPIs/budgets, align them to the new period. Otherwise management reports will “live separately”. See also: kordusaruanne.