One of the most interesting features of the Estonian business system is Out Of Pocket expenses. In this post, we explain how they work, and how you can easily declare them in our dashboard.

What Are Out of Pocket Expenses?

The Estonian business system is very flexible and offers many advantages for entrepreneurs. Imagine that Ana forgets her business card on her trip to San Francisco, and needs to pay a business expense with it. What can she do?

No problem, Ana can pay that expense with her personal credit card, or even in cash, but ask for an invoice for her company, and then tell us that she paid that with her personal money. We will declare that expense as “out of pocket expenses”, and Ana can refund that money back into her personal bank account without paying taxes for it.

Who Can Declare Out of Pocket Expenses?

Any member of the board of an Estonian company can pay expenses with their personal money and then declare them as out-of-pocket expenses. Later, they will be able to refund that money back into their personal accounts.

Out of pocket expenses

How to Declare Out of Pocket Expenses?

It’s important that you ask for an invoice for your company, even if you are going to pay that expense with your own money. Then, before refunding the money back to your account, you need to let us know that these expenses were paid with your personal finances.

In order to do so, you need to log in to the dashboard and go to your purchase invoices. If you haven’t already, upload the purchase invoice. Next, you just need to click on the “Out of pocket” switch for that entry in the table of expenses.

Here’s an animation showing you how to do it.

Out of pocket expenses

Now we will acknowledge the fact that you paid that expense with your personal finances. So we won’t look for a bank payment from your company’s account for that invoice.

Then, you can safely do a transfer from your company’s bank account to your personal one, stating “refund for out of pocket expenses” in the concept of the transfer.

That’s all! Easy right?


In this post, we explained what Out of Pocket expenses are, how to use them, and how to declare them in our dashboard. While ideally, you should not need to do this often, the fact that you have the flexibility of paying an unexpected expense with your personal finances is quite useful.

If you have any questions, don’t hesitate to contact us.