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Accounting services calculator for Latvia accounting

Entering required information, you can calculate the price for accounting services.
Number of invoices, issued by the company itself for rendered services and delivered goods. Number of issued invoices
Number of invoices, received from business partners for received services and goods. Number of received invoices
Checks, receipts, tickets and other documents proving cash payments. Number of documents on cash expenditures
Company must prepare cash order, for example, if collects money from electronic cash register and then pays to the cash-desk of the company. Number of cash receipts and cash payments
Number of persons with whom employment contracts are concluded, as well as persons that are regarded as employees. Number of employees
Number of both, goods and service recipients and suppliers. Only the number of the business partners, with which are made non-cash settlements. Number of business partners (customers, suppliers)
Number of natural persons to which the company pays royalties. Number of paid royalties
Development costs, concessions, patents, licenses, trade marks and similar rights, other intangible assets, Goodwill, Advance payments for intangible assets; Land, buildings and structures, and perennial plants; Long-term investments into leased fixed assets; plant and machinery; other fixed assets and inventory; Expenses in creation of fixed assets and unfinished constructions. Number of units of fixed assets, intangible investments
Number of cars that are available for company (borrowed, rented, owned). Number of vehicles, used by company
Number of business trips. Number of business trips
Number of reports, required by Central Statistical Bureau and Latvian Bank. Number of statistical reports
Is the company registered in register of persons, applicable with value added tax? Is the company VAT payer?
Are transactions carried out with persons that are registered outside the Republic of Latvia? Have transactions with non-residents?

In general price depends on time, necessary to do accounting. Other factors that may affect the price are as follows:
  • Transaction complexity.
    • For example, in one case, the enterprise performs the same transactions and the application of taxes to such transactions is clear (non-contradictory). There are no questions during the time of recording of transactions, there is no need additionally to analyze legislation.
    • In another case a company performs different transactions (for example, various types of services, electronically supplied services, sale of licenses, sale of goods). Buyers and recipients of services are both natural and legal persons. The place of residence (business) of buyers and recipients of services is in Latvia, in another European Union Member State and outside the European Union. During recording of such transactions must check if correct value added tax rate is applied to each transaction. Also, during recording of transactions, different questions may arise. To find an answer to the questions, it may be necessary to analyze various normative acts, court judgments, explanations of the State Revenue Service.
    In the second case, the price of accounting services will be higher compared to the first case.
  • Circumstances not directly related with accounting.
    • Pricing policy (for example, the minimum price).
    • Location of premises, amount of office expenses. In any case, maintenance of premises, possible rent of premises, possible secretarial services, advertising, etc. costs must be covered by the price of the services.
      The maintenance costs and rental fees of a provider who leases an office, for example in Old Riga, are usually higher than a service provider located outside the center of Riga or owning office space (no rental expenses).
      Also, the price of a service may be affected by the area of premises not directly used for the provision of accounting services (eg. an anteroom, a reception room, negotiation rooms, etc.).
      If the service provider company hires a secretary, then the secretary expenses must include in the price of the service.
    • Requirements of a business owner. If the owner's basic income is only from the outsourcing accounting service provider and the owner often travels, uses expensive cars, etc., then these expenses affect the price of the service.
      If a CEO / owner of a company personally provides accounting services, then the cost of services is usually lower comparing to a case where a CEO / owner does not personally provide services and hires an accountant.
    It should be taken into account that the more customers has a service provider, the less various non-accounting costs affect the price of the service.
  • Average salary for the profession, taking into account normal working time (for example, 8 hours each working day). Obviously, an outsourcing accounting service provider will want to earn a remuneration comparable to the average remuneration (salary).
  • Communication with the Client. Two situations can be compared:
    • The Client regularly (for example, at the beginning of each month) transfers (sends) to the accountant all documents and necessary information. When recording documents, an accounting in general does not arise any questions. During the work (collaboration) there is basically no ambiguity and misunderstanding. Collaboration is clear (predictable).
    • The client irregularly submits part of documents (after several requests). During recording of transactions, accountant notices that multiple invoices are missing (in bank statement is a payment, but does not have corresponding invoice). Or invoices are not correct (incorrect amount, missing details of buyer, service provider, etc.). Documents and information are often submitted shortly before the deadline for submission of reports or after the deadline for submission of reports (declarations). Rather frequently must submit corrections of tax reports. For some transactions, an incorrect tax rate is applied. Payments of some salaries do not correspond to the approved salary calculations. Client relatively frequently contact with an accountant to solve various issues. It is urgent to solve the issues (an accountant must postpone the planned work to address the Client's questions). An accountant frequently must communicate with Client's creditors regarding payment of Clients's debts. An accountant relatively frequently must communicate with the State Revenue Service and deal with various issues.
    In the first situation, with the same number and types of transactions, the remuneration for accounting services will be lower than in the second case.
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