Accounting and Tax for a Foreign-Owned Latvian Subsidiary

Client profile

Client

Latvian subsidiary of a German group

Industry

Manufacturing

Employees in Latvia

More than 50

Services

Accounting, payroll, tax returns, group reporting

The challenge

The German group had just registered its Latvian company. From the start it wanted everything set up so that the Latvian figures could go straight into the group's consolidated reporting in Germany.

The group needed a general ledger on the German chart of accounts and in German, even though we do not speak German. On top of that, prior periods cannot be changed once a month is closed, so the data has to be right and consistent at the close.

Our approach

• Mapped the Latvian chart of accounts to the group's German chart of accounts.
• Agreed that the client emails documents directly into our accounting system and states the cost category in the email text, so the accountant knows where to post each one.
• Documents are stored in the system together with the invoices, so nobody has to search through emails later.
• After each month-end close we send the group a general ledger on the German accounts and in German. The accounts were mapped once, and the report is generated automatically.
• Communication with the group is in English.

The outcome

• Each month the group receives the Latvian company's general ledger in its own chart of accounts and language, ready for consolidated reporting.
• We close every month, and the data does not change after the close, so it stays consistent.
• The document flow is simple for the client: one email with the cost category is enough.

Services used

• Accounting Services
• Payroll Services
• Financial Reporting