Single-entry bookkeeping
In Latvian: Vienkāršā ieraksta sistēma
Single-entry bookkeeping (vienkāršā ieraksta sistēma) is a method that records cash and bank receipts, payments and balances, and changes in assets, without ledger accounts, to the extent needed to calculate taxes and control assets.
The Accounting Law makes double entry the default. Single entry is allowed for individual merchants, individual enterprises, farms and fisheries, and other individuals carrying out economic activity, if their turnover (revenue) from business transactions did not exceed EUR 300,000 in the previous financial year.
For associations, foundations, trade unions and religious organisations the limit is EUR 100,000 a year for two consecutive previous years. Capital companies such as an SIA or an AS are not on the list, so they must keep double-entry books.
Single entry is usually kept in a journal of business income and expenses. If cash receipts and payments are recorded in that journal, a separate cash book is not required.
Example
Anna, a self-employed graphic designer, earned EUR 42,000 in 2025, so in 2026 she may keep single-entry books. If her income in 2026 went above EUR 300,000, she would have to switch to double entry from 2027.
Legal basis
- Accounting Law, Section 10 likumi.lv
- Accounting Law, Section 14 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.