- Law No. 25/2018 “On Accounting and Financial Statements” requires every business to maintain proper accounting, but does not specify how work within the business should be organized; that remains a decision for the administrator.
- The most common mistake small businesses make is treating accounting as a side task for someone on staff, without defined roles or a regular monthly schedule.
- The three main organizational models are the owner themselves for a microbusiness, an in-house accountant for a business with a high volume of transactions, or an external economist for most SMEs.
- Law No. 87/2026, which amends Law No. 25/2018, introduces new obligations even for businesses that are not very large, so the accounting structure must be reviewed periodically.
Law No. 25, dated May 10, 2018, “On Accounting and Financial Statements,” requires every entity engaged in economic activities in Albania to maintain proper accounting records and prepare financial statements in accordance with applicable standards. The law specifies what must be kept, but not how the work within the business should be organized; that remains entirely the administrator's decision.
From our daily work, we often see small businesses that treat accounting as a side task, saddled onto an unprepared staff member or onto the owner themselves, with no clear role separation and no set pace. The result is usually gathering documents at the end of the month under pressure, instead of a regular, ongoing process.
Read also: Tax Procedures in the Republic of Albania.
The Three Models of Accounting Organization
The owner himself, an in-house accountant, or an external economist.
For a microbusiness with very few transactions per month, the owner can handle the initial administrative work themselves—gathering and organizing documents—while still maintaining professional oversight from a certified accountant for tax returns and financial statements. For a business with a high volume of transactions and a need for daily oversight, a full-time in-house accountant is often justified by the sheer volume of work. For most small and medium-sized businesses in Albania, the most cost-effective and quality-appropriate model is the external accountant, a specialized team that handles accounting, tax filings, and advisory services in a single monthly package, without the expense of a full-time employee.
Clear division of roles
Regardless of the model, work is best organized when roles are clearly separated: who collects and submits documents within the business, who records them, and who verifies them before filing. Dual control—that is, having a document verified by someone other than the person who prepared it—remains one of the most effective ways to catch errors before they turn into problems with the tax administration.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
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Monthly rhythm, not the end-of-month rush.
A business that submits documents throughout the month, instead of piling them up until the end, gives the accountant enough time to verify everything before the filing deadline. Fiscalization and electronic invoicing facilitate this pace, because most of the data is recorded automatically in real time, rather than being collected manually at the end of the period.
How we handle this with our clients
With every new client, we establish a clear document-submission schedule and a dedicated contact person within their business from the outset, so that work proceeds at a steady pace throughout the month, not just in the days before the deadline.
Frequently asked questions
Do I absolutely need a full-time in-house accountant?
No. The law requires that accounting be kept regularly and by qualified personnel, but it does not mandate any particular form of organization. Most small and medium-sized businesses address this through an external accountant, without needing a full-time in-house position.
Does the new Law No. 87/2026 affect me?
The most significant changes, such as sustainability reporting, apply only to very large entities. However, some changes, like the new explanatory notes and the compliance statement accompanying the financial statements, also affect smaller businesses. We recommend a concrete assessment of the impact on your business, as the effective date must be confirmed in the Official Gazette.
How often do I have to submit the documents?
We recommend submitting continuously throughout the month, rather than concentrating everything at the end. This allows sufficient time for verification and significantly reduces the risk of errors before filing deadlines.
