Erisoodustus (fringe benefits / personal benefit) is one of the most expensive topics for small businesses: if the company pays personal expenses and the business purpose/documents are missing, it becomes a tax risk. The annual report itself does not replace tax filings, but it fixes the financial picture where questionable expenses become visible.
For erisoodustus, keep a short register: expense → business purpose → document. It’s far cheaper than rebuilding the story “after the fact” right before an inspection.
Below is a practical checklist for erisoodustus and board payments: what to review before year-end close and which documents usually save you when questions appear.
In practice, before filing, verify the requirements in EMTA guidance on fringe benefits and EMTA guidance on dividend taxation.
Five areas to review before year-end close
- Car and fuel: personal vs business use; do you have tracking/rules.
- Business trips: route, purpose, evidence, per diems.
- Equipment, communication, subscriptions: who uses it, business purpose, contracts.
- Gifts and representation: to whom, why, documents.
- Board payments: contract/decision/basis so payments don’t look “random”.
A simple rule
If there is no business purpose and no documents, erisoodustus risk is high. In that case it’s better to:
- reclassify the expense (before year-end close),
- declare it correctly (if applicable),
than to “hide” it in general expenses.
Documents to keep for each risky transaction
- source document (invoice/receipt);
- a short explanation of business purpose (1–2 sentences);
- who used it / who received the benefit;
- an internal policy if the expense repeats (car, trips, equipment/subscriptions).
How this ties to the annual report
Before you file the annual report, check:
- no clearly personal items are booked as company expenses;
- board payments match contracts/decisions;
- no material liabilities (for example, accruals) are missing from the balance sheet and disclosures.
Checklist (save it)
- Risky expenses have documents and business purpose.
- Car/travel rules and evidence exist.
- Board payments are supported by contract/decision.
- If something is erisoodustus — it is recorded and declared correctly.
- A quick expense review is done before filing.
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, advise on documentation and take it to filing. Contact us.
Quick fixes for typical cases
Subscriptions/services (SaaS, communication, software)
- define who uses the service (role/position);
- if a specific person uses it and there is personal benefit — assess the risk and document the business purpose;
- keep invoices and contracts (especially for foreign services).
Cars
Two typical approaches:
- strict business use with trip log / internal rules; or
- mixed use, where the personal element is recognized and handled in line with EMTA rules.
The key is to avoid living in a grey zone “as it goes”.
Business trips
Keep:
- trip purpose (meeting/conference/client),
- route and dates,
- evidence (tickets, accommodation),
- internal approval (who approved).
Gifts/representation
It must be clear “to whom and why”. Gifts to employees vs gifts to clients are different cases, and documents should reflect that.
Pre-close review: how to check everything in 60–90 minutes
- Export expenses for the year for the 5 “risk areas”.
- Mark transactions with missing documents or missing business purpose.
- Restore documents/explanations where realistically possible.
- Reclassify questionable transactions (if needed).
- Check whether tax returns/accruals need correction.
Mini policies that actually help
If transactions repeat, create a short one-page policy:
- travel policy (what is a business expense, which documents are required);
- car policy (trip log/fuel/personal use);
- limits for representation and gifts;
- rules for equipment and subscriptions.
This reduces “new debate every time” and makes reporting cleaner.
Common mistakes
- “documents exist, but business purpose doesn’t” (impossible to explain);
- paying personal expenses through the company “we’ll sort it later”;
- board payments with no contract/decision;
- confusing company expenses with a loan/reimbursement by the owner.
How it shows up in the report (and why it’s better to fix early)
If questionable transactions stay in expenses:
- profit and equity get distorted,
- audit questions become more likely,
- a bank may request explanations.
That’s why fixing erisoodustus issues before year-end close saves time and reduces risk.
See also on blog.accres.eu
The simplest way to reduce risk is to introduce 2–3 short policies and follow them throughout the year.
FAQ
If the expense is small, can we ignore it?
Better not. Small amounts often accumulate into a pattern. Use a simple rule: business purpose + document = defensible expense.
Can we fix it “retroactively”?
Sometimes you can restore documents and business purpose, but it is always risky. If a transaction is already in the annual report and tax returns, classify it first and then correct bookkeeping if needed.
If the company is small and the owner pays for everything, is that OK?
Yes, but separate what is a loan/reimbursement from what is a company expense. And if there is personal benefit (erisoodustus), it must be handled correctly.
What if we discovered questionable transactions after year-end close?
Start with classification: loan / reimbursement / erisoodustus. Then decide whether accounting and tax corrections are needed and how it should be reflected in the annual report.
Do we need to disclose everything in the annual report?
No. The annual report does not list every purchase. But questionable amounts affect profit and equity, so correct classification, documents and (if needed) a short explanation matter.