Thursday, November 14, 2019

Bookkeeping in Latvia


Every business must do bookkeeping and there are no exceptions. The accounts must show all the economic transactions of the company as well as any facts or events leading to a change in the state of the assets of the company. 
The accounting records shall be kept in a double-entry system. In the simple entry system, accounting may be organized in accordance with the procedures specified by the Cabinet of the ministry:

sole proprietorships, sole proprietorships, farmers' and fishermen's farms whose turnover (income) is not economically viable and does not exceed EUR 300 000 in the accounting year, other natural persons performing economic activities;
associations, foundations, trade unions and religious organizations whose turnover (revenue) for the current and the accounting year does not exceed EUR 40 000.

Accounting should enable a third party, who is qualified in accounting, to obtain a true and fair view of the financial position of the enterprise at the balance sheet date, its results, its cash flows for a specified period and to determine and track the start of each economic transaction.

The information provided by the accounting officer shall be true, comparable, timely, relevant, comprehensible and complete. Accounting ensures the separation of income and expenses from the accounting period.

The company manager is responsible for keeping the data and for storing any documents that confirm the business, originals, copies of data.

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