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Is Bookkeeping Mandatory In Andorra?

According to Andorran law, businesses have to keep financial records and file for taxes when:

They are incorporated as a “Societat Anonima” (SA) or a “Societat Anonima Unipersonal” (SAU) — similar to a Public Limited Company.

They are incorporated as a “Societat Limitada” (SL) or a “Societat Limitada Unipersonal” (SLU) — similar to Limited Liability Companies or Single-member companies.

They are not incorporated but report an income higher than €150.000 per year.

Businesses that don’t fit these criteria are not required to file for taxes. Because of that, they often forego accounting services as a whole, without realising how useful they can be.

The Unseen Benefits of Accounting

Accounting services can be so much more than just complying with tax obligations — business owners should view them as an investment. They allow you to get a clear cut view of your company’s financial situation, identify trends and make both short and long term predictions.

Well kept books can expose inefficiencies, reveal hidden costs, and grant owners greater knowledge to make informed decisions. In fact, proper accounting usually leads to saving money in the long run.

Can I Keep My Own Books?

While technically possible, we strongly suggest against keeping your own books. Andorran tax rates are lower than other countries in the region, however, our tax system is not simple. This is why ledgers, books and tax forms have to be approved by an accountant.

Rather than spending your own time bookkeeping and navigating a new tax system — one that is likely in a foreign language — outsource the hassle to qualified, experienced professionals. Our team can handle your accounting so that you can focus your time and efforts on managing and growing your business.

What Happens If I File Taxes Incorrectly?

Andorra takes its taxation quite seriously, and improper filing could lead to grave consequences. At best, your mistake means wasting time and money, at worst, you could find yourself in legal troubles.

Save Yourself Time, Money and Trouble With MCA Assessors

Hiring an accountant in Andorra allows you to take full advantage of our country’s low taxation, without wasting your time, money or energy on becoming familiar with an intricate tax system. MCA Assessors can take care of all your accounting needs so that you can focus on what really matters, your business. Contact us for more information.