How to Choose an Accounting Firm in Latvia — 10 Questions to Ask

At Balansis, we have spoken to more than 300 entrepreneurs who have switched accountants. Almost every one of them says the same thing in that first conversation: "I didn't know what to ask." They picked their first firm based on price, a friend's recommendation, or appearance — and a year later found themselves dealing with missed filings, unexpected invoices, and silence at the very moment they most needed advice.

This article is our attempt to change that. We have created a framework of 10 questions that any entrepreneur can use when evaluating an accounting firm — including ours. If a firm can answer these questions clearly and confidently, they deserve your attention. If the answers are evasive, vague, or suspiciously brief — keep looking.

Why the Cheapest Option Usually Costs More in the Long Run

Before we get to the questions, one fundamental truth: in the accounting market, price almost always correlates with quality and, more importantly, with the level of responsibility.

A firm that offers bookkeeping for €50 a month can only do so in one way — by handling hundreds of clients simultaneously with minimal attention to each. In this model, there is no time for consultations, no time for an in-depth review of documents, no time for proactive tax planning. The client gets a conveyor-belt service: documents are processed, returns are filed, but nothing more.

Our experience shows: a company with 20–30 transactions per month that pays €100 to an accountant loses, on average, €2,000–5,000 a year in missed tax optimisation opportunities, penalties arising from missed deadlines, and time spent correcting the accountant's mistakes themselves. That is why the question is not "how much am I paying?" but "what am I getting for this money?".

Question 1: Is the accountant certified?

In Latvia, anyone can provide accounting services — the law does not require mandatory certification. However, the difference between a practising bookkeeper and a certified specialist is vast.

LAA certification (Latvian Association of Accountants) means the accountant:

• Has passed standardised examinations in accounting, taxation, and financial management

• Regularly participates in continuing professional development courses (mandatory hours per year)

• Abides by a professional code of ethics

• Is subject to the association's disciplinary responsibility

LRS certification (Latvian Association of Certified Auditors) applies to sworn auditors and represents an even higher level of recognition.

What to ask: "Are there certified accountants in your team? What is their level of certification?"

If the firm answers "we don't have formal certifications, but we have experience" — that is not an automatic reason to walk away, but it does mean you should be particularly attentive to the remaining questions. Certification is the only independent quality mark in the industry.

Question 2: Do you have experience in my industry?

Accounting for an e-commerce business is fundamentally different from accounting for a construction company. The reverse VAT charge in construction, the OSS regime for online stores, the healthcare VAT exemption, customs procedures for importers — each industry carries its own specific challenges.

If an accountant is encountering your industry's specifics for the first time, they will be learning at your expense — and mistakes will cost you.

What to ask: "Do you already have clients in my industry? Can you briefly describe the main accounting specifics of this sector?"

A good accountant will answer this question concretely, citing examples and specific challenges. A poor one will be evasive, saying "we work with all industries".

Question 3: Who will actually handle my account on a day-to-day basis?

This is one of the most frequently neglected questions, and one that later causes the greatest disappointment. You meet an experienced, knowledgeable partner in the sales conversation, but after the contract is signed, your day-to-day point of contact becomes the most junior accounting assistant with no experience.

What to ask: "Who will be my primary point of contact? What is this person's experience and qualifications? Can I meet them before signing the contract?"

A professional firm can clearly name the responsible person and their qualifications. If the answer is "your account will be handled by a team", follow up with: "Who on the team will be responsible for the quality of my account?"

Question 4: How do you communicate — and how fast do you respond?

The accounting relationship is a service in which the quality of communication directly determines the outcome. If you have an urgent question about applying VAT before issuing an invoice to a client, and the accountant responds four days later — you are in a bad position.

What to ask:

• "What is your typical response time to an email? To a phone call?"

• "Do you have a defined SLA (service level agreement) with guaranteed response times?"

• "What happens if my regular accountant is on holiday or off sick?"

A good firm can name concrete timeframes — for example, "we respond to emails within 4 business hours". If the answer is "we always respond quickly", that is not concrete.

Question 5: How do you handle it if you make a mistake?

Mistakes happen to everyone — even the best accountants. The question is not whether a mistake will occur, but what happens afterwards.

What to ask:

• "Do you hold professional indemnity insurance? What is the level of cover?"

• "If my company receives an SRS penalty due to your mistake, who covers it?"

• "Is your liability and its limitations clearly set out in my contract?"

A professional accounting firm carries civil liability insurance. If the firm cannot produce an insurance policy or evades the question of liability — that is a red flag.

Question 6: What exactly is included in your price, and what is extra?

This is the question that gives rise to the most misunderstandings and conflicts. Many firms offer a low base price but then apply additional charges for almost everything.

What to ask:

• "Is the annual report included in the monthly fee? If not, how much does it cost?"

• "Is payroll calculation included? What is the price per employee?"

• "Is there a transaction limit beyond which the price changes?"

• "What is the hourly rate for additional consultations?"

• "Are there any hidden charges — for setting up EDS access, for sorting out initial documents, for preparing the archive?"

Ideally, you should receive a written price list that clearly separates what is included in the base service and what is considered additional work.

Question 7: Do you proactively alert clients to risks and deadlines?

A good accountant is not just a document processor — they are the financial supervisor of your business. They notice that the VAT registration threshold is approaching. They remind you of upcoming tax changes. They recommend when and how to distribute dividends to optimise your taxes.

What to ask: "Do you proactively inform clients about upcoming tax changes that will affect them? Do you monitor your clients' turnover and alert them when the VAT threshold or other material limits are approaching?"

If the answer is "yes, that is part of our service", follow up with: "Can you give an example from the last year where you proactively alerted a client to an upcoming risk?"

Question 8: How do you help with tax optimisation?

Not all accountants provide tax advice, and not all do so proactively, but as an entrepreneur it is important to understand what level of support you can expect in this area.

What to ask:

• "Do you actively offer your clients legal tax optimisation opportunities?"

• "Do you help clients choose between salary and dividends, or between the standard and alternative CIT regimes?"

• "Do you recommend that clients apply for EU funding if you see they meet the criteria?"

A good firm will answer this question with concrete examples. For instance: "We regularly analyse our clients' salary and dividend structures and recommend the most optimal model. Last year, we advised several clients to switch to the alternative CIT regime, which saved them an average of €3,000–5,000 a year."

Question 9: What is the exit process if I want to end the relationship?

This is a question that is rarely asked, but one that matters enormously. If in a year or two you decide to switch accountants, how easy or difficult will it be to leave?

What to ask:

• "What is the notice period in your contract?"

• "Is there a minimum contract term?"

• "Within what timeframe and in what format do you hand over documents to a client who is leaving?"

• "Is there an additional charge for preparing and handing over the document archive?"

If the firm avoids this question or says "we'll talk about that when it becomes relevant", be wary. A professional firm can clearly describe the exit process.

Question 10: What is your technological level?

Accounting in 2026 is no longer just Excel spreadsheets. A modern accounting firm uses software that integrates with your bank, automatically processes invoices, and lets the client track their financial data.

What to ask:

• "What accounting software do you use?"

• "Do I as a client have access to the system to view my data?"

• "Does your system integrate with my bank for automatic transaction import?"

• "How do you ensure data security?"

What to Expect from a Good Accounting Firm — Summary

These 10 questions are not designed to "catch out" an accountant — they are intended to help you, as an entrepreneur, make an informed choice. At Balansis, we are ready to answer every one of them in our first consultation — and we encourage you to ask these same questions of any other firm you are considering. Because the better informed the market is, the better its service providers will have to be.

Last updated: June 2026. Information is based on Balansis team experience, LAA certification requirements, and Latvian accounting market practice.