Digital bookkeeping and e-invoices — how to set it up?

Digital bookkeeping means invoices, bank entries and declarations move in a system — not email attachments or a shoebox. Estonia supports this with e-invoices, e-MTA and modern software. Below: what to set up and where to start.

What must be in digital order?

• Sales invoices — in one system, with the correct VAT rate (standard 24%)
• Purchase invoices — arriving as e-invoices or PDFs into one folder/flow
• Bank feed — entries arrive automatically or on a regular schedule
• Declarations — KMD by the 20th, TSD by the 10th via e-MTA

E-invoices — why they help

An e-invoice is machine-readable (e.g. XML), not a scanned PDF. That cuts manual work: amounts, VAT and references reach the books with fewer errors. The state and many larger buyers prefer or require e-invoices.

If you issue many invoices to B2B clients, set up e-invoice sending from day one. If you mainly serve private individuals, a correct PDF invoice can be enough at first — but receiving purchase invoices as e-invoices still pays off.

Monthly digital rhythm

1. During the month: invoices and costs into the system (not a pile at month-end)
2. Month close: bank reconciliation, payroll, missing documents
3. TSD ready before the 10th
4. KMD ready before the 20th (if you are VAT-liable)

More on declarations: tax declarations in Estonia.

Common mistakes

• Invoices as email attachments with no single archive
• Personal and business costs in the same folder
• Wrong VAT settings — old rate instead of 24%, or missing VAT number
• “Digital” in name only: Excel + WhatsApp photos

How to start

Pick one main system, connect the bank, teach yourself (or your accountant) the document flow and stop parallel Excels. If you form a new OÜ, set the digital flow immediately — see company formation and bookkeeping.

GPCONSULT OÜ

We work digitally: e-invoices, shared access, clear deadlines. You do not post paper or wonder whether “the file arrived”.