Bookkeeping in BiH: Complete Guide for Entrepreneurs (2026)

Everything you need to know about bookkeeping in BiH — VAT, payroll, company formation and the legal framework of FBiH and RS. Practical guide with FAQ.

Quick answer: Bookkeeping in Bosnia and Herzegovina is a legal obligation of every business entity. It covers recording all financial transactions, preparing annual reports, and compliance with tax regulations in FBiH and RS. Without proper bookkeeping, you risk penalties from the Tax Administration and ITA of up to 30,000 BAM.

What is Bookkeeping and Why is It Crucial for Your Business?

Bookkeeping is the systematic recording, classifying and storing of financial transactions of a business entity. Every inflow and outflow of money, every invoice, every payment — all must be recorded in the legally prescribed manner.

The difference between bookkeeping and accounting is important:

Bookkeeper: focuses on recording transactions, maintains business books
Accountant: analyses data, prepares financial statements, provides strategic advice

Legal Framework in Bosnia and Herzegovina

The legal framework for bookkeeping in BiH is complex due to the country's two-entity structure:

FBiH: Law on Accounting and Auditing of the FBiH, Law on Income Tax FBiH, Law on Profit Tax FBiH
RS: Law on Accounting and Auditing of the RS, corresponding tax laws

Both entities are covered by the single VAT Law administered by the Indirect Taxation Authority (ITA).

Who Must Keep Business Books?

Every business entity registered in BiH must keep books: limited liability companies (LLC), sole traders above the lump-sum threshold, associations and foundations, and foreign companies with a branch in BiH.

ENS d.o.o. — Your Partner for Bookkeeping in Sarajevo

With over 12 years of experience and 75+ active clients, ENS d.o.o. provides comprehensive bookkeeping support for businesses of all sizes in Sarajevo and Sarajevo Canton.