How much does accounting services cost in Latvia?

At a time when, according to legal regulations, job advertisements must now indicate the planned salary for all advertised vacancies, it is easier for each of us to understand the costs of various jobs, at least approximately. And yet – how much do accounting services cost for a company? What are the average accounting costs? Let’s find out!

In fact, a little more research into the market situation makes it clear that the costs for accounting services can range from 20 to 5000 euros per month. The most popular advertising sites contain advertisements published by people, who are ready to provide accounting services for 20 euros per month, while experienced accountants in large companies receive 5000 euros and even significantly higher salaries. Thus, the question – which accounting services can be received for 20 euros, and which – for 5000 euros, becomes more important.

What can you receive for 20 euros?

Of course, it is still possible to hire an accountant for 20 euros per month – these will mostly be people, who are not ready to devote too much time and energy to this work. In practice, stories have been heard about such “experts”, who are ready to receive the mentioned 20 euros in an envelope every month for their work, but they leave the “ship” as soon as the first problems arise. It is clear to everyone that for 20 euros per month it is impossible to purchase advanced computer programs, computers, pay for electricity, taxes and attend training courses that improve qualification.

Everyone knows the saying that a stingy persons pays twice, but it would not be the correct one in this case. By saving on accounting services and paying the accountant the mentioned 20 euros per month, the consequences can cost up to thousands of times more later on. By the time the controlling institutions start counting the penalties and making their claims, your accountant for 20 euros may already be gone and will simply shrug their shoulders, when you mention his or her responsibilities.

What can you receive for 5000 euros?

What are the reasons for some accountants receiving 5000 or even more? What makes them better than others? It is clear that a good accountant is aware of his or her value – he or she uses all the advanced options, regularly attends courses and seminars, and is the right hand to the company manager, always providing advice and helping to plan the future financial flow. In large companies the accountant must be a comprehensive expert, who knows almost all the possible nuances, participates in the decision-making process that is important for the business, leads a team and, of course, is also looking to earn accordingly. In addition – the accounting industry is currently changing rapidly – increasingly more is done by computer software, artificial intelligence is involved, and therefore the accountant must be an analyst who can see through the numbers and suggest the smartest business development scenarios.

The truth lies somewhere in between

Of course, these are some extremes that we are viewing here, but, most likely the same as in any profession, the quality of accountants’ work corresponds to how well they are paid. In a medium-sized company, the accounting costs will be somewhere in between. Of course, it all depends on the needs of the company management. If it is enough to hire a person, who knows how to divide all the money into expenses and income only, such services will not cost much, but accordingly it costs more, if it is convenient to work with a specialist who is competent in the nuances of the field, takes responsibility for what has been accomplished and is able to analyse the figures.