Outsourced accountant licence: what it is and how to check whether an accountant is licensed

The Ministry of Finance describes licensing as a state-recognised mechanism that helps to establish which service providers are competent and trustworthy.

The licensing system was developed and implemented in close cooperation with the accounting profession and the Latvijas Republikas Grāmatvežu asociācija (Association of Accountants of the Republic of Latvia). Its aim is to give consumers guarantees of quality and safety, raise service quality, reduce shadow economy risks and increase the international credibility of the Latvian economy.

Accountants play a major role in building a lawful economic environment, including in preventing money laundering and terrorism and proliferation financing. Licensing therefore has an important role in creating an orderly and lawful economy.

Obtaining a licence requires professional qualifications, professional experience, an internal control system (ICS), a civil liability insurance policy and proof of payment of the state fee.

The application must state the personal details of the responsible accountant. The responsible accountant may also be a member of the company’s management board, provided they meet the legal requirements on work experience and education. The following must be attached to the application:

• a document confirming professional qualifications (a diploma from a higher education institution);
• a document confirming professional experience (an employment contract, a job description or a certificate from the employer on the person’s employment as an accountant);
• the internal control system (ICS);
• a civil liability insurance policy.

A company needs one licence, not one for each accountant it employs.

A licence can be obtained remotely in the Electronic Declaration System (EDS) by completing the form “Iesniegums ārpakalpojuma grāmatveža licences saņemšanai” (Application to Receive an Outsourced Accountant’s Licence). A state fee of EUR 100 must be paid for issuing or re-registering the licence, and it must be paid before the licence is received or re-registered.

The SRS reviews the application and decides to issue or refuse the licence within one month of receiving it. The licence is issued for a period of five years and can then be re-registered.

For operating without a licence, the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (Section 78, paragraph 1) provides sanctions for the accountant: a warning, a fine or suspension of activity, or a temporary ban on the responsible person performing their duties.

Before the requirement came into force on 1 July 2023, the Ministry of Finance reported that 2,214 licences had been issued to outsourced accounting providers since 1 July 2021. Of these, 1,793 licences (81%) were issued to companies and 421 licences (19%) to individuals who provide outsourced accounting as self-employed business operators.

At that time, 5,261 outsourced accounting service providers were registered with the SRS.

SolConto is a licensed outsourced accounting service provider. As with any other licensed provider, SolConto’s licence can be checked in the SRS register.

Since 2016, SolConto has been helping companies build an organised, secure and transparent accounting process.

State Revenue Service: Outsourced accountants must obtain a licence by 1 July (in Latvian). Ministry of Finance: From 1 July, outsourced accounting services only with a licence (in Latvian).