“The Cheap Accountant” in Latvia: Three Hidden Losses That Eat Away at Profit
Many companies in Latvia try to save money on accounting costs, but end up paying far more — not with invoices, but with stalled growth, tax risks, and unclear management insights. These are the three most common “hidden losses” that silently eat away at profit.
1. Growth That Stops at the Invoice
How it looks in real life: sales happen, but revenues don’t arrive on time. Invoices are missing a PO/Reference, delivery date, or proper VAT justification. The client’s CFO presses pause, cash flow starts to choke, and the sales team is left waiting for a miracle.
Why it happens: accounting is seen as “posting entries,” not as part of the revenue cycle. That’s why market leaders emphasize full-spectrum service — accounting, payroll, tax, reporting — because everything needs to work in rhythm.
What to do differently: evaluate your accounting partner not by how fast they “collect receipts,” but by whether they can prevent payment blockers and ensure money comes in on time.
2. The VAT/EDS “Hidden Percentage”
How it looks in real life: VAT codes are mixed up, deadlines in the Electronic Declaration System are missed, corrections pile up, and extra consultations are needed. On paper it looks “cheaper,” but in reality it’s much more expensive — with penalties and wasted management time.
Why it happens: lack of local expertise and oversight. Latvia has its own specifics — VAT rates, justifications, reporting rhythm. International practice alone doesn’t always carry this, which is why strong players stress global experience combined with local compliance.
What to do differently: don’t just look for a big brand name, ask for demonstrable local competence and clear accountability for VAT/EDS quality. A “cheap” service without local responsibility almost always ends up costly.
3. Management Decisions Without a Clear View
How it looks in real life: P&L reports arrive late, cash flow isn’t forecasted, and decisions rely on gut feeling rather than analytics. As a result, supplier discounts are missed, pricing plans are left unchanged, and confidence is lacking.
Why it happens: companies hire an “accountant,” not a full financial service. There are no cloud-based insights, no monthly management conversations, no rhythm. That’s why market leaders increasingly offer “outsourced accounting + cloud + monthly insights” as one package.
What to do differently: assess your partner by whether you can understand, within 15 minutes, where profit comes from and what blocks cash flow — not by the thickness of the reports.
How to Tell the “Cheap” From the “Valuable”?
Three questions for every CEO or CFO:
- What will change in my revenue cycle? (not just “how do you book entries”)
- Who guarantees VAT/EDS accuracy and deadlines? (not “we try,” but one person with name and surname)
- How do you turn a month into decisions? (is it clear what leadership sees every month?)
If your partner cannot answer these convincingly, the “cheap” option will very likely become expensive.
Why This Angle Matters Now
When market leaders promise “global + local” and full-spectrum services, it’s not just marketing — it’s a direct response to real risks and costs. Cloud solutions and monthly insights are no longer extras; they are the new standard that separates bookkeeping from true financial management.
What You Should Do?
If you care less about “how much accounting costs” and more about how much delays, corrections, and uncertainty cost, now is the right time. Book a meeting now!
