Imagine needing a medical procedure. You would hardly choose someone who simply "understands the human body well" but holds no diploma, certificate, or licence. You would look for a certified doctor — someone whose competence has been verified by an independent professional body.
The world of accounting has a curious feature: in Latvia, anyone may call themselves a grāmatvedis (accountant) and offer accounting services. There is no mandatory state licence, no compulsory examination, no mandatory certification. This means your SIA's financial oversight could be performed by a person whose only qualification is basic Excel skills and a few months' experience at another firm. And you would not know until it is too late.
This article explains what a certified accountant is in Latvia, the differences between various levels of certification, the professional liability of an accountant for mistakes, and why certification is one of the most important criteria when choosing an accountant for your business.
The Difference Between a Certified and an Uncertified Accountant
In Latvia, accounting service providers can be divided into two broad categories: practising accountants without certification, and certified accountants. The difference between them is fundamental.
An uncertified accountant can be anyone who:
Has learned accounting through self-study or short courses
Has worked as an accounting assistant in another firm without formal education
Offers services as a self-employed individual or a small company
There is no legal mechanism to prevent such a person from calling themselves an accountant and offering accounting services. Quality control relies entirely on the client's ability to assess the accountant's work — and most entrepreneurs only acquire this ability after their first SRS audit.
A certified accountant is a person whose competence has been examined and recognised by an independent professional body. In Latvia, the main types of certification are:
Certification issued by LAA (Latvian Association of Accountants)
Certification from LRS (Latvian Association of Certified Auditors)
A certified accountant has passed standardised examinations, continues to study regularly, and is subject to the oversight and disciplinary responsibility of a professional organisation.
How to Become a Certified Accountant — The Path to Qualification
Qualified accountant status is not a matter of chance or self-proclamation. It is the result of a lengthy and demanding process.
Educational Requirements
To be eligible for LAA certification, a candidate must hold:
A higher education degree in accounting, finance, economics, or business management (at least a bachelor's degree)
Or a secondary vocational education in accounting with at least three years of practical work experience
Some certified accountants have also obtained internationally recognised qualifications, such as ACCA (Association of Chartered Certified Accountants), one of the world's most respected accounting credentials. ACCA certification requires several years of study, passing 13 examinations, and at least three years of practical experience.
Data point: LAA membership exceeds 1,000 professionals who regularly renew their qualifications.
The Examination Process
The certification examinations are not a formality. They cover:
Financial accounting (advanced — double-entry, international standards)
Management accounting and cost analysis
Tax systems and tax planning
Financial analysis and report preparation
Commercial law and business-related legislation
Ethical standards and professional practice
Examinations are taken across several levels, with increasing complexity. Candidates who fail an examination may retake it only after a specified period and additional preparation.
Continuous Professional Development
Certified accountant status is not a "lifetime guarantee". It requires continuous qualification maintenance:
Mandatory continuing professional development hours each year (typically 40–60 hours annually, depending on the type of certification)
Participation in seminars, conferences, and courses on current tax changes
Regular study of professional literature
In 2026 alone, several significant changes have come into effect — the alternative CIT regime, the new EDS authentication procedure, the VAT pilot programme for food, changes in excise duty. A certified accountant has studied these changes and knows how they will affect their clients' businesses. An uncertified accountant may only learn of them when a client receives an SRS penalty notice.
LAA and LRS — The Two Main Certification Paths
LAA Certification
The Latvian Association of Accountants (LAA) is the largest professional accounting organisation in Latvia. The certificates it issues are recognised nationwide and attest that the holder meets international professional accounting standards.
LAA offers several qualification levels:
LAA member — a basic qualification attesting to compliance with professional standards
LAA certified accountant — a higher-level certificate requiring additional examinations and experience
Specialised certifications in specific areas (e.g. tax advisory, management accounting)
LRS Certification
The Latvian Association of Certified Auditors (LRS) is the highest-level professional body. Its certificates mainly apply to sworn auditors, but accountants may also obtain LRS-recognised qualifications.
LRS certification requires:
An even higher level of education (a master's degree)
More complex examinations, also covering international auditing standards
Practical experience under a certified auditor
What Certification Means — Liability and Client Protection
Perhaps the most important difference between a certified and an uncertified accountant lies not in knowledge, but in accountability. A certified accountant bears professional liability, which means:
Professional indemnity insurance. LAA members and LRS-certified professionals are required or strongly encouraged to hold professional indemnity insurance. If a mistake by the accountant results in an SRS penalty for your company, the insurance covers the loss.
Disciplinary liability. If a certified accountant acts contrary to professional standards, the client may lodge a complaint with the LAA or LRS. The organisation may impose disciplinary sanctions — from a warning to revocation of the certificate.
Code of ethics. Certified accountants are bound by a professional code of ethics that mandates confidentiality, integrity, objectivity, and professional competence.
An uncertified accountant has no such protection mechanisms. Yes, a civil claim can also be brought against them in court. But in practice, this is a lengthy, expensive, and often ineffective process — especially if the accountant is an individual with limited personal assets.
How to Verify an Accountant's Credentials Online
Before entrusting your SIA to an accountant, verify their certification status. It is straightforward and takes just a few minutes.
Checking LAA certification:
Visit the official LAA website (www.laa.lv). In the "Members" or "Certified Accountants" section, you can search by name, surname, or certificate number. The system will show whether the person holds an active certificate, what level it is, and its expiry date.
Checking LRS certification:
The LRS website (www.lzra.lv) hosts a register of sworn auditors and certified specialists. Here you can verify whether a person holds a valid LRS certificate and whether any disciplinary proceedings have been initiated against them.
SRS and Commercial Register public databases:
Although these do not show certification, they can be used to check whether the accountant is registered as an economic operator and whether they have any tax debts. An accountant with significant tax debts is an obvious red flag.
What should you do if an accountant claims to be certified but their name does not appear in any register? Ask the direct question and request to see the certificate. An honest professional will do so without hesitation.
Accountant vs Sworn Auditor — What Is the Difference?
These are frequently confused terms. "Accountant" and "auditor" are not the same thing, although both work with financial data. The difference lies in their roles, responsibilities, and functions.
Aspect | Accountant (grāmatvedis) | Sworn Auditor (zvērināts revidents) |
|---|---|---|
Main function | Performs day-to-day accounting records, prepares returns and reports | Examines already prepared financial statements and gives an independent opinion on their truthfulness |
Relationship with the company | Ongoing service provider (monthly service) | Periodic independent assessor (usually once a year) |
Mandatory certification | Not mandatory (except for certain specialisations) | Mandatory — must be a sworn auditor with an LRS certificate |
Mandatory insurance | Not mandatory, but recommended | Mandatory |
Client base | Any business | Mainly medium and large companies whose reports require a statutory audit |
A sworn auditor may not simultaneously keep the accounting records and audit the same company — that would be a conflict of interest. This is why larger companies usually have both an accountant and a separate auditor.
Why Choose a Certified Accountant for Your SIA
At Balansis, we have seen both sides. We have taken over accounting from uncertified bookkeepers whose work had to be corrected for months. We have helped clients whose previous accountant had filed inaccurate returns, resulting in SRS penalty assessments. And we have seen the difference when a company's financial oversight is carried out by a professional who understands not only "how", but "why".
Choosing a certified accountant is not just about quality — it is about managing risk. You transfer part of the financial risk to a professional who has both the knowledge and the insurance to bear that risk.
What this means for your SIA:
Lower probability of errors. A certified accountant has passed examinations and continues to learn — statistically, they will make fewer mistakes.
Protection in the event of errors. If a mistake does occur, you have a mechanism to recover the loss.
A proactive approach. A certified accountant thinks ahead — they will notice you are approaching the VAT registration threshold, recommend the most optimal time for a dividend distribution, inform you of upcoming tax changes.
Access to specialised knowledge. Accounting firms with certified specialists typically also offer in-depth advice on specific issues — intra-Community VAT, international tax planning, transfer pricing documentation.
A certified accountant is not a luxury — it is a safety standard. In a country where anyone can call themselves an accountant, certification is the only independent proof that a professional genuinely masters their field. At Balansis, we take pride in the certified accountants on our team and are ready to answer any questions about our qualifications, insurance, and experience.
Last updated: June 2026. Information is based on official LAA and LRS materials, the Law on Accounting, and professional practice standards.
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