A company in Lithuania has to submit reports to the Tax Inspectorate, Social Insurance Fund, Statistical Office, Register Center, Customs Office and Migration Offices. It can be difficult for a foreigner to keep accounts and bookkeeping – he needs to know the Lithuanian language, Lithuanian legislation and understand bookkeeping and bookkeeping requirements. Failure to comply with annual report requirements or non-payment of taxes will cause problems with the authorities. Every Lithuanian company must have an accountant who will help prepare the necessary reports and submit them to the state authorities, as well as give advice on what taxes to pay.

Accounting reforms in Lithuania
Lithuania has been one of the frontrunners in the rapid transition to International Public Sector Accounting Standards (IPSAS) with consolidated state and local government financial reporting. Transitioning to this system was challenging and required preparation.

The reforms not only included a change in accounting principles, but also aimed to increase the effectiveness of the accounting function itself. Policy makers at central and local levels started working on reforms five years earlier. The preparatory phase included pilot programs by several public sector organizations, as well as the development of regulations, detailed accounting manuals and transition instructions. Extensive training for public sector auditors and the completion of standardized IT solutions took place. Another was the implementation of a centralized IT solution for national financial reporting for more than 4,000 public organizations.

Public Reception
These changes are not a painless transformation process. They called for changes in the qualifications of all public accountants and initially met with strong resistance. Strong political support and determined Treasury leadership were critical to ensuring their successful implementation. There was still a one-year delay from the original launch date. This was due to a lack of preparation on the part of public sector organizations.

Current status and results
The system is well established and there have already been two cycles of awards based on IPSAS. To secure reforms, the Treasury Department is now focused on changing standards and other regulations. This provides support for a call center set up to handle IPSAS requests and offers on-site training to improve the quality of financial data.

Future prospects
The implementation of reforms was a step in transforming the public finance system. To maximize the potential benefits of this system, the country must have a consistent vision for public finance reform as a whole. Following the implementation of IPSAS, Lithuania has strengthened the qualifications of public sector auditors and the IT systems used for its government accounting. The process is ongoing and the country still faces many challenges; The successful implementation of IPSAS has given a critical edge on the road to excellence in public finance.