General Terms of Accounting Services

Version 1, effective from 07.10.2026. Applies to the accounting services agreements of SIA "BALANCE" (reg. No. 40103151167) and SIA "Balance RB" (reg. No. 40103328317). This is a translation; in the event of any discrepancy, the Latvian text prevails.

1. Application of the Terms

1.1. These terms (hereinafter – the Terms) and the Accountant's price list for services (hereinafter – the Price List) are integral parts of the agreement on accounting services concluded between the Accountant and the Client (hereinafter – the Agreement). The Accountant is the company indicated in the Agreement.

1.2. The Agreement sets out the Client's monthly service fee and individual terms, if any. In the event of any discrepancy between the Agreement and the Terms, the Agreement prevails.

1.3. The current version of the Terms and of the Price List, as well as previous versions, are published at balance.lv.

2. Services, payment and settlement procedure

2.1. The Accountant provides, and the Client accepts and pays for, accounting services (hereinafter – the Services).

2.2. The Client pays the Accountant the monthly service fee set out in the Agreement and, for the services listed in the Price List that the Client has used, the price set out in the Price List. If the Accountant is a value added tax payer, the Client additionally pays value added tax at the applicable rate (hereinafter all together – the Remuneration).

2.3. On the 1st day of the current month the Accountant issues an invoice for the Services provided in the previous month, and the Client pays it (including any late payment interest, if calculated) by the 10th day of the current month.

2.4. The day of payment is deemed to be the day on which the Client has transferred the amount stated in the invoice from its settlement account to the settlement account indicated by the Accountant.

2.5. The monthly service fee does not include the Client's records management (orders, route sheets, employment contracts, etc.) or other services listed in the Price List.

2.6. The Client orders a service listed in the Price List by e-mail and pays for it at the price set out in the Price List. For work not listed in the Price List, the Accountant informs the Client by e-mail, before starting the work, of the price or hourly rate and the expected scope, and starts the work after the Client's confirmation by e-mail. Hourly work is invoiced according to the time actually spent. Such an order is not an amendment to the Agreement.

2.7. The Accountant is entitled, once per calendar year, to review the monthly service fee and to increase it in line with the official inflation in Latvia of the previous calendar year (according to the annual consumer price index published by the Central Statistical Bureau). The Accountant notifies the Client thereof by e-mail at least 30 (thirty) days in advance. Such a price increase is not an amendment to the Agreement.

3. Rights and obligations of the Accountant

3.1. The Accountant is obliged to provide the Services in due time and of good quality.

3.2. For contact and day-to-day work, the Accountant appoints a representative and informs the Client by e-mail of the representative's name, telephone number and e-mail address, as well as of any change of representative.

3.3. The Accountant is obliged to:

3.3.1. comply with all accounting and organisational requirements;

3.3.2. keep the Client's accounting so that a third party qualified in accounting matters can obtain a true and clear view of the Client's financial position, results of operations and cash flow over a given period, and identify the start of each business transaction and follow its course;

3.3.3. mandatorily observe and apply the Latvian accounting standards laid down in regulatory enactments;

3.3.4. use only licensed accounting software for keeping the accounts, while ensuring the maintenance and updating of such software in accordance with the regulatory enactments in force;

3.3.5. keep the accounting registers in accordance with the requirements of the Accounting Law (Grāmatvedības likums) and other regulatory enactments;

3.3.6. systematically (also chronologically) keep all of the Client's supporting documents, accounting registers, inventory lists, annual reports and their annexes, and accounting organisation documents, and hand them over for storage in the Client's archive;

3.3.7. reflect the inventory results in the accounting based on the inventory taken by the Client;

3.3.8. prepare reports and statements of various content – both for submission to the State Revenue Service and at the Client's request; the price of reports prepared at the Client's request is set by the Price List or by the procedure in clause 2.6;

3.3.9. using the State Revenue Service Electronic Declaration System, submit to the State Revenue Service the reports referred to in clause 3.3.8 in the procedure and within the time limits laid down in regulatory enactments;

3.3.10. advise the Client (at the Client's request or on its own initiative) on accounting and/or tax matters. Consultations may take place either orally or in writing, by means of e-mail.

3.4. The term "inventory" also covers the valuation of the objects subject to inventory, where necessary, as well as their reflection in the inventory lists.

3.5. The Accountant provides the Services at its registered address or at the address designated as the place of provision of the accounting services.

3.6. The Accountant operates under an outsourced accountant licence issued by the State Revenue Service, the number of which is indicated in the Agreement, and has insured its professional civil liability in accordance with the requirements of the Accounting Law.

4. Rights and obligations of the Client

4.1. The Client is obliged to pay the Accountant the Remuneration in the set procedure and within the set time limits.

4.2. The Client is obliged to submit to the Accountant all necessary documents or copies thereof evidencing the existence and monetary value of the Client's business transaction, for each month no later than the 5th day of the following month. These documents must comply with the requirements governing the preparation, storage and use of supporting documents. If the Client submits documents later, the Accountant is not liable for their non-inclusion in the reports and declarations of the respective period or for the consequences of such delay.

4.3. The information provided by the Client must be true, comparable, timely, significant, understandable and complete.

4.4. At the Accountant's request, the Client is obliged to provide the true information and documents necessary for customer due diligence, including on beneficial owners, the Client's transactions and the origin of funds, in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, and to inform the Accountant of any changes to this information.

4.5. If the Client fails to provide the information and documents referred to in clause 4.4 to an extent that allows the Accountant to carry out customer due diligence, the Accountant terminates the Agreement by notifying the Client in writing, and the notice period set out in clause 8.2 does not apply.

4.6. The Parties send the notices provided for in the Terms to the e-mail addresses indicated in the Agreement. A Party notifies the other Party of a change of address by e-mail.

5. Liability and confidentiality

5.1. If the Client delays payment of the amount set out in the invoice, the Accountant is entitled to calculate and collect late payment interest of 0.1% (zero point one percent) of the unpaid principal for each day of delay, subject to the limitations set out in Section 1763 of the Civil Law.

5.2. If the State Revenue Service, in the performance of its duties, has found that the Client has committed breaches of the Accounting Law and other applicable accounting regulatory enactments, as a result of which the Client has been administratively penalised and the fine has been paid, the Client is entitled to address the Accountant with a claim in order to obtain an explanation of the reasons for the respective breach.

5.3. The Accountant, in cooperation with the Client, is obliged to ensure that the breaches found by the State Revenue Service no longer recur, as well as to compensate the losses incurred by the Client through the fault of the Accountant to the extent set out in clauses 5.5 and 5.6.

5.4. All information and documents placed at the Accountant's disposal are confidential, except for information and data that are public under regulatory enactments.

5.5. The Accountant compensates the Client for direct losses incurred by the Client due to the Accountant's action or inaction and through the Accountant's fault. The Accountant's liability does not extend to indirect losses, including lost profit, or to third-party claims.

5.6. The Accountant's total liability for any losses in connection with the performance of the Agreement shall not exceed the Remuneration (excluding value added tax) paid by the Client to the Accountant for the 12 (twelve) month period preceding the event that caused the losses. The limitations of liability set out in clauses 4.2, 5.5, 8.5 and in this clause do not apply to losses caused by wilful misconduct or gross negligence, or in other cases where the limitation of liability is not permitted by regulatory enactments.

6. Personal data processing, artificial intelligence and access to systems

6.1. In providing the Services, the Accountant is a processor of the Client's personal data within the meaning of Regulation (EU) 2016/679 of the European Parliament and of the Council (General Data Protection Regulation, hereinafter – the Regulation). The subject matter and purpose of the processing is the provision of the Services, the processing takes place for the term of the Agreement, the types of data processed are identification, contact, employment, remuneration, tax and payment data, as well as sick leave data to the extent necessary for calculating remuneration, and the data subjects are the Client's employees, officers, shareholders, beneficial owners and business partners who are natural persons. Personal data that the Accountant processes to fulfil its own obligations under regulatory enactments (including customer due diligence under the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing and keeping its own accounts) are processed by the Accountant as a controller, and clauses 6.2 and 6.3 do not apply to them.

6.2. The Accountant:

6.2.1. processes personal data only on the Client's documented instructions, which include the Agreement and the Client's written instructions, including by e-mail, except where processing is required by regulatory enactments (including the submission of data to the State Revenue Service and other state institutions), in which case the Accountant informs the Client of that legal requirement before processing, unless such information is prohibited by regulatory enactments;

6.2.2. ensures that persons authorised to process the personal data have committed themselves to confidentiality;

6.2.3. takes the technical and organisational security measures required by Article 32 of the Regulation;

6.2.4. assists the Client in responding to data subject requests and in complying with the obligations under Articles 32 to 36 of the Regulation, including by notifying the Client without undue delay of a personal data breach;

6.2.5. makes available to the Client the information necessary to demonstrate compliance with the obligations set out in this section and allows audits by the Client or an auditor mandated by the Client, at a time agreed in advance;

6.2.6. immediately informs the Client if, in the Accountant's opinion, an instruction of the Client infringes the Regulation or other data protection regulatory enactments.

6.3. The Client grants the Accountant a general written authorisation to engage other processors for the following services: accounting software and its hosting, cloud document storage, e-mail, document recognition and artificial intelligence tools, as well as outsourced accountants and data entry specialists engaged by the Accountant. The Accountant sends the Client by e-mail the list of other processors involved in processing the Client's data after the Agreement is concluded and at the Client's request. The Accountant notifies the Client by e-mail at least 7 (seven) days in advance, or within a shorter period if the Client agrees to it by e-mail, of any intended addition or replacement of another processor in processing the Client's data, and the Client may object within that time. Until the objection is resolved, the Accountant does not use the respective processor for processing this Client's personal data. If the Parties do not reach agreement on the objection, either Party may terminate the Agreement in the procedure set out in clause 8.2. The Accountant imposes on each other processor the same data protection obligations as set out in the Terms and is liable to the Client for the performance of the other processor's obligations.

6.4. The Accountant or the processors engaged by it transfer personal data to a country outside the European Economic Area only in accordance with Chapter V of the Regulation – to a country for which the European Commission has adopted an adequacy decision, or by applying the standard data protection clauses adopted by the European Commission.

6.5. The Accountant uses artificial intelligence tools as an aid for document recognition, data preparation and drafting texts. The output of such tools is reviewed by the Accountant's responsible employee before use, and artificial intelligence tools do not make decisions on accounting and tax matters on their own. The Accountant uses only artificial intelligence tools whose provider's terms prohibit the use of the Client's data for training artificial intelligence models. The Accountant is liable for the output of such tools in the same way as for its own work.

6.6. The Accountant may access the Client's data in the accounting software, including Moneo, and in the Electronic Declaration System of the State Revenue Service also via an application programming interface (API), using automated and artificial intelligence tools, to read data, to enter documents and accounting entries and to prepare declarations and reports. The Accountant keeps API access keys secure and uses them only for the performance of the Agreement; the Accountant reviews actions performed via the API in the same way as its other work and revokes the access after termination of the Agreement.

6.7. Upon termination of the Agreement, the Accountant hands over the Client's accounting data and documents to the Client in accordance with clause 8.3. After the handover, unless the Client has instructed otherwise, but no later than 3 (three) months after termination of the Agreement, the Accountant deletes the Client's personal data, including copies, from its own systems and those of the processors engaged by it; data in backup copies are deleted at the end of the backup retention cycle; backup copies are not used in day-to-day work, and if data are restored from them, the Accountant deletes them again. At the Client's request, the Accountant confirms the deletion in writing. This obligation does not apply to data that the Accountant is required to retain by regulatory enactments, including Section 37 of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing; the Accountant retains such data only to the extent and for the period laid down in regulatory enactments and uses them only to fulfil those obligations.

7. Amendments to the Terms and the Price List

7.1. The Accountant may amend the Terms for the following reasons: changes in regulatory enactments or in the requirements of state authorities; a change of the software, tools or processors used; a change in work organisation, the procedure and time limits for submitting documents; clarification of the Terms that does not worsen the Client's rights.

7.2. The Accountant notifies the Client of amendments to the Terms by e-mail at least 30 (thirty) days before they take effect, stating the content of the amendments, and publishes the new version at balance.lv. The Accountant notifies the Client of amendments to the Price List in the same way at least 3 (three) months before they take effect.

7.3. If the Client does not agree to the amendments, the Client may terminate the Agreement by notifying the Accountant by e-mail before the date on which they take effect; in this case the notice period set out in clause 8.2 does not apply and the Agreement terminates on the date the amendments take effect, without any additional charge. If the Client does not terminate the Agreement and continues to use the Services after the date on which the amendments take effect, the Client has agreed to the amendments.

7.4. Without the time limit set out in clause 7.2, the Accountant, by notifying the Client by e-mail, changes its details, representative and contact information, as well as the Terms to the extent that the changes are directly required by regulatory enactments – from the date on which those regulatory enactments take effect. Indexation of the monthly service fee is carried out in accordance with clause 2.7, changes to the processors in accordance with clause 6.3, and the prices of Price List items priced according to the price list of SIA Moneo Latvia change in the procedure set out in the Price List.

7.5. Amendments to the Terms or the Price List cannot change the monthly service fee set out in the Agreement, the scope of the Services, the limitations of liability set out in clauses 5.5 and 5.6, the notice period set out in clause 8.2, the dispute resolution procedure set out in clause 8.4 or the parties to the Agreement. These are amended only by an agreement signed by both Parties, except for the indexation of the monthly service fee in accordance with clause 2.7.

8. Term of the Agreement, termination and other provisions

8.1. The Agreement enters into force upon signing and is concluded for an indefinite period.

8.2. Either Party may terminate the Agreement by notifying the other Party 30 (thirty) days in advance, except in the cases set out in clauses 4.5 and 7.3. In the event of termination, both Parties are obliged to hand over to the other Party in good time all information related to the continuity of the accounting services.

8.3. No later than 30 (thirty) days after termination of the Agreement, the Accountant hands over to the Client the accounting registers and the documents submitted by the Client in electronic form (accounting software export files and copies of documents), for which the Parties sign a handover certificate.

8.4. The Parties resolve disputes and disagreements by negotiation. If agreement is not reached, the dispute is resolved in court in accordance with the regulatory enactments of the Republic of Latvia.

8.5. If the Client fails to pay invoices in good time, the Accountant warns the Client in writing, including by e-mail, setting a time limit of at least 7 (seven) days for payment. If payment is not made within that time limit, the Accountant is entitled to suspend the provision of the Services until all payments have been settled, and the Accountant is not liable for the consequences arising from the suspension of the services. During the suspension the Accountant continues to comply with its confidentiality and personal data protection obligations.

8.6. If force majeure obstacles arise for either Party that are beyond the Parties' influence and control, that Party notifies the other Party in order to agree on further action.