According to recent legislative amendments, micro-enterprises and small companies in Latvia can submit their annual reports until May 31st of this year. It is essential to note that the decision of the Saeima on March 21, 2023, regarding amendments to the “Law on Annual Reports and Consolidated Annual Reports” (GPKGPL – Gada Pārskatu un Konsolidēto Gada Pārskatu Likumā, in Latvian), represents a significant step affecting the deadline for submitting annual reports for micro-enterprises and small companies. The amendments propose extending this deadline by one month, providing businesses with additional time for the preparation and submission of annual reports. This advantage has already been used by companies submitting their 2022 annual reports by May 31, 2023.
Companies affected by these amendments are those classified as micro-enterprises under Latvian legislation, with a balance sheet total not exceeding EUR 350,000, net turnover not exceeding EUR 700,000, and an average number of employees not exceeding 10. To qualify for this status, at least two out of three conditions must be met.
Small companies are defined as those with a balance sheet total not exceeding EUR 4,000,000, net turnover not exceeding EUR 8,000,000, and an average number of employees not exceeding 50. To qualify for small company status, at least two out of three conditions must be met.
Thus, the majority of Latvian companies qualify for micro-enterprise or small company status.
Why and how these amendments positively impact micro-enterprises and small companies
The extended deadline for submitting annual reports allows businesses to better prepare their annual reports and provides greater flexibility in this process, reducing stress and improving the accuracy of annual reports. These amendments undoubtedly have a positive impact on both companies with in-house accountants and financial specialists, as well as those collaborating with accounting firms and financial experts.
Innovatio Capital is already preparing for the submission of annual reports
Our professional objective is to ensure that our clients receive accurate and timely prepared annual reports. To achieve this, we carefully plan and organise all necessary tasks, taking into account the individual needs of each client. We pay special attention to the work done by our clients, providing a detailed evaluation of changes in turnover and balance sheet items. Our goal is to guarantee that all financial aspects are accurately reflected in the annual reports, allowing clients to understand and assess the financial position of their companies.
Early preparation for the submission of annual reports will improve work efficiency and workflow within the company, reduce specialist stress, and allow addressing various issues with our clients well in advance within the context of annual reports.
An additional month for the preparation of annual reports does not mean that we plan our work later; it means that our clients will have more time to prepare questions, submit information, review annual reports, if necessary, organize meetings, and receive consultations.
Innovatio Capital plans to prepare more than 120 annual reports for clients. Planning for the preparation and submission of the 2023 annual reports has already begun in the last quarter of 2022. Effective planning allows us to clarify information with our clients on time. The trust of our clients is our main incentive. If you have additional questions regarding the submission of annual reports, please contact our specialists promptly.