Switching accountants is one of those decisions entrepreneurs tend to put off. Not because there are no complaints, but because the transition process feels complicated, time‑consuming, and risky — especially when your current accountant holds EDS access, all your company documentation, and knowledge of its financial history. Yet staying with a poor accountant can cost considerably more than switching — penalties for missed declarations, missed tax optimisation opportunities, and the risk that your accounting policies no longer comply with 2026 requirements.
In this guide, we describe the entire process step by step — from the first warning signs to the moment your new accountant has fully taken over.
1. Warning Signs: When It's Time to Switch Accountants
Before thinking about the process, it's important to be sure that a switch is genuinely needed. Here are seven signs we at Balansis hear most often from clients who move over from other accounting providers:
You find out about SRS deadlines only after they've already been missed. Your accountant doesn't inform you of upcoming declaration deadlines, and you only learn of the delay when a penalty notice arrives from the tax office.
Your accountant takes days to answer questions — or doesn't answer at all. Normal communication is part of the core service, not a luxury extra.
You're paying penalties for mistakes your accountant made. If penalties come out of your own pocket rather than the accountant taking responsibility, that's a serious problem.
You get no reports on the company's financial position. At month-end, you should receive at least a balance sheet and profit and loss statement — not just an invoice for services rendered.
Your accountant never mentions tax optimisation opportunities. A good accountant actively suggests ways to legally reduce your tax burden — for example, using the 2026 alternative CIT regime (15% + 6%) or timing profit distributions to a more favourable period.
You feel your business is "too small" and doesn't get enough attention. Even if your company has only a few dozen transactions a month, it deserves a full service.
Your accountant hasn't informed you about significant legislative changes. In 2026 alone, several major changes have taken place: the new alternative CIT regime, the EDS authentication change (secure identification tools only), and the VAT pilot programme for food. If your accountant hasn't discussed these with you, they're not keeping up with industry developments.
If you recognise at least three of these signs, seriously consider switching.
2. Before You Make a Move: What to Prepare
Before formally notifying your current accountant that the relationship is ending, take three preparatory steps.
2.1. Review Your Contract Terms
Read through your agreement with the current accountant. Pay attention to:
Notice period. Typical outsourced accounting contracts have a one-month notice period, but some agreements may specify longer periods or a minimum contract term (e.g. six months or a year).
Document handover procedure. Does the contract specify the deadline and format in which the accountant must hand over documents once the relationship ends?
Additional charges. Does the contract provide for any fees for preparing the document archive or exporting data?
2.2. Choose Your New Accountant Before Letting the Old One Go
Never end the relationship with your current accountant before you've found a new one. Reasons:
The transition period can take 2–4 weeks, and during that time someone must ensure ongoing declarations are filed.
The new accountant can help you prepare document requests — a professional knows exactly what to ask for.
You can coordinate the switch date so it doesn't coincide with declaration deadlines (e.g. VAT return on the 20th).
2.3. Prepare a List of Everything You Need from the Old Accountant
This checklist will be your main tool during the transition. A detailed list is in the next section.
3. What the Old Accountant Is Required to Hand Over
When the relationship ends, the accountant is obliged to hand over all documents and data relating to your company's accounting. Here is the precise list of what you should receive.
Mandatory Documents and Data to Request
1. Primary documents (originals):
All incoming and outgoing invoices
Bank statements and payment orders
Cash receipts and vouchers
Contracts with clients and suppliers
Waybills, delivery and acceptance certificates
Expense advance reports
2. Accounting registers:
General ledger (summary of all account turnover and balances)
Fixed asset register
Employee personal account cards (if you have employees)
Payroll calculation registers for each month
3. Filed declarations and proof of submission:
Printouts or PDFs of all SRS-filed declarations for the last 3 years
EDS submission confirmations (unique submission numbers)
VAT returns and their annexes
Employer reports
CIT returns
Filed annual reports
4. Accounting database:
Full accounting software database (e.g. Jumis, Horizon, Pats.lv, Excel)
Database password and access details (if the software is your property)
Summary of all account balances as at the latest date
5. Access credentials and passwords:
Confirmation that EDS authorisation has been revoked
Access keys for any software purchased in the company's name
Cloud service account access details
6. Other essential documents:
Accounting policy (the document setting out the company's accounting methods)
SRS correspondence for the last 3 years
Information on filed but not yet received VAT refunds
Information on any current or planned SRS audits
4. The Document Handover Deed
We recommend drawing up a document handover and acceptance deed — it will protect both you and the accountant from misunderstandings later. The deed should include:
A list of the documents being handed over (can be attached as an annex)
The date on which the documents were handed over
A statement that the documents handed over correspond to the company's accounting records for the period from [start date] to [end date]
Signatures of both parties
Important: before accepting the documents, ensure you have received everything listed above. Once the deed is signed, proving that something was missing becomes considerably harder.
5. Revoking EDS Authorisation
This is a critically important step that many entrepreneurs forget. As long as the old accountant has an active EDS authorisation, they can legally file documents in your company's name — including after the relationship has ended.
How to Revoke an Accountant's EDS Authorisation
Log in to eds.vid.gov.lv using your e‑identity (Smart-ID, eID, or eParaksts). Important: since 1 January 2026, you can no longer log in to EDS with a username and password — a qualified electronic identification tool is required.
Go to "Settings" → "Users and their rights".
Find the accountant whose access you want to revoke in the list.
Click "Block access to the system" (to block only EDS) or "Block in all systems" (to block access to other SRS systems such as EMDAS as well).
Verify that the changes have been saved — the system will display a confirmation message.
You can also revoke an authorisation in person at any SRS customer service centre by presenting your ID.
Preventive step: after blocking the old accountant's access, check the list for any other unfamiliar users or outdated authorisations.
6. Onboarding Your New Accountant
Once the documents have been received from the old accountant, it's time to bring the new one on board. An effective onboarding process includes the following steps:
6.1. Handing Documents Over to the New Accountant
Pass all the documents you received from the previous accountant to the new one. The most common approaches:
Digital handover: all documents are uploaded to a shared folder (e.g. Dropbox, Google Drive) or sent by email in encrypted form.
Physical handover: documents are handed over in person, with a separate handover and acceptance deed.
6.2. Granting EDS Authorisation to the New Accountant
Log in to EDS using your e‑identity.
Go to "Settings" → "Users and their rights".
Select "Add new user" and enter the new accountant's personal identification number.
Grant the necessary rights: "View rights", "Edit rights", and "Submit rights" for the relevant document types (Employer Report, VAT Return, CIT Return, etc.).
Important: do not grant full access to all document types — keep personal documents (e.g. Annual Income Tax Return) outside the accountant's access scope.
6.3. Introducing Your Company
To enable the new accountant to work effectively, provide them with:
A brief company description: business activities, main clients, suppliers, transaction specifics
Bank account access: view‑only internet banking rights (without payment authorisation)
Contact details: who to contact about invoices, contracts, payroll matters
The previous year's annual report and the current balance sheet: to understand the company's financial position
6.4. Trial Period
In the first month after the switch, we recommend:
Checking that the new accountant has filed all current declarations by their deadlines
Comparing at least one payroll calculation with the previous period to ensure consistency
Discussing tax optimisation opportunities — a good accountant will proactively offer solutions, not wait for you to ask
7. How Long Is the Previous Accountant Liable?
A frequently asked question: if an SRS audit a year later uncovers an error made by the previous accountant — who is liable?
The answer depends on whether the accountant was an employee or an outsourced service provider.
Outsourced accountant:
Liability is governed by the contract between the company and the accountant. Professional accounting firms usually carry professional indemnity insurance. However, contracts often specify a liability period (e.g. 12 or 24 months after the relationship ends). Beyond this period, liability may be limited unless the error was concealed in bad faith.
In-house accountant (employee):
Under Latvian Labour Law, the employer is liable for mistakes made by the employee. However, the employer has the right to claim damages from the employee if the error was gross or deliberate. In practice, this is a complicated process.
Practical tip: before ending the relationship with an outsourced accountant, agree in writing on the liability period and the procedure for communication in case the SRS raises questions about the period during which the accountant handled your books.
8. Typical Transition Timeline
Day | Action |
|---|---|
Day 1 | You evaluate the warning signs and decide to switch |
Days 2–5 | Find the new accountant, confirm their availability, and agree on the start date |
Day 6 | Notify the old accountant in writing that the relationship is ending (observing the contractual notice period) |
Days 6–7 | Request document handover from the old accountant (use the list above) |
Days 8–14 | Old accountant prepares the document package |
Day 15 | Document handover and signing of the handover deed |
Day 15 | EDS: block the old accountant's access |
Days 15–16 | EDS: grant access to the new accountant |
Days 16–20 | Hand over documents to the new accountant, introduce your company |
Days 21–30 | New accountant reviews the received data, begins filing current declarations |
Days 30–60 | Trial period: monitor that declarations are filed on time, communicate with the new accountant |
Your Transition Checklist
Read through your contract with the current accountant (notice period, handover procedure)
Find a new accountant and agree on the cooperation start date
Notify the old accountant in writing that the relationship is ending
Request a printout or export of the full accounting database
Receive all primary documents (invoices, receipts, contracts)
Receive copies of all filed declarations for the last 3 years
Sign the document handover and acceptance deed
EDS: revoke the old accountant's authorisation
EDS: grant authorisation to the new accountant
Hand over all documents and the database to the new accountant
Introduce the new accountant to your company's specifics
In the first month, verify that all current declarations have been filed on time
Switching accountants isn't an everyday event, but it's also not an emergency. Most new accountants have a vested interest in making the transition smooth — it's also a matter of their own reputation. The main thing is to avoid a situation where documents end up "between two accountants" with the next filing deadline looming.
If you're considering switching accountants, our team will help with the transition process — from preparing the document checklist to setting up EDS access.
Last updated: April 2026. Information is based on official SRS materials on EDS usage and industry practice.
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