Transaction checks for self-employed and SIA in Latvia
Accounting is one of those parts of running a business where even a small inaccuracy can create extra work. An incorrectly entered amount, a mismatch between an invoice and a transaction, a missing supporting document, or incorrect partner details - these are situations that both self-employed people and companies (SIA) may face in their day-to-day work.
That is why a modern accounting system should do more than provide a place to enter income and expenses. It should also help spot when entered data does not match the documents.
Pats.lv has introduced a new feature in its accounting system - transaction checking. It compares information from the transaction, the document and, when available, the payment. The check is performed by artificial intelligence, and the pats.lv team has been among the first in Latvia to introduce it. The feature was created to help self-employed people, SIA companies and accountants notice possible inaccuracies sooner and put their accounting records in order before preparing reports and declarations. All issues and suggestions are presented to the user in plain language.
Why is transaction checking important?
When you manage your own accounting, your attention is often divided among clients, invoices, expenses, bank payments, taxes and documents. The more transactions there are, the easier it is to miss a detail.
For example, an invoice may show one supplier name while the accounting system shows another. Or the amount stated in a document may differ from the amount entered in the transaction. Sometimes the problem is simple, but it can only be noticed when the data is compared.
The new pats.lv feature provides an additional checking step. It does not make the decision for the user; it shows where a particular transaction deserves attention. The system divides results into several statuses - “All good”, “Warning”, “Error” and “Not checked”.
This means that accounting automation here is not just about automating data entry. The system also helps review information that has already been entered.
26 check points in a single transaction
The new feature currently offers up to 26 check points. The exact number of points checked depends on the type of transaction, the user profile and the data available in the system.
The checks are divided into six main categories.
1. Checking the document and its details
The first category concerns the supporting document itself. The system can help check whether the required document has been attached to the transaction, whether it was issued to the correct person or company, whether its number matches the number entered in the system and whether the attached file is an appropriate transaction document.
This is particularly useful when a large number of receipts and invoices are processed each month.
2. Amounts and calculations
The second group of checks concerns amounts. The system compares the transaction total with the amount shown in the document and checks the amount before VAT and the VAT portion.
This can help reveal simple but inconvenient mistakes, such as an invoice showing one amount while another was entered in the accounting records.
3. VAT data
For companies and self-employed people registered for VAT, VAT accounting is an essential part of bookkeeping.
Transaction checking can compare the VAT rate and VAT amount shown in the document and check whether VAT has been included in a declaration when the user profile is not registered as a VAT payer.
This helps draw attention to data before it reaches the next stage of the accounting process. It is particularly useful before preparing and submitting reports to the State Revenue Service (VID), because the system automatically prepares reports for submission to VID.
4. Partner information
Another common accounting inaccuracy involves client or supplier details.
The system can check whether the partner name matches the document, whether registration and VAT numbers match, and whether the payment recipient corresponds to the document issuer.
If a possible mismatch is found, the user can see exactly what needs to be checked.
5. Date, period and expense category
In accounting, what matters is not only how much was paid, but also when and how the transaction was recorded.
The check can draw attention to whether a transaction was recorded in the correct period, whether the document and transaction dates differ significantly, whether a larger purchase should be recorded as a fixed asset, and whether the selected expense category matches the content of the document.
6. Payment and recipient
The final category concerns payment. If bank transaction information is available in the system, it can check whether a payment is linked to the entry, whether the payment amount matches the transaction total and whether the actual payment recipient matches the stated supplier.
This kind of check is particularly important for companies with many bank transactions.
How does the new feature work?
Transaction checking is designed so that the user does not have to learn a complicated procedure.
The process is simple:
1. Open a transaction.
Select an income or expense entry and make sure the entered details are correct. If a receipt or invoice is available, attach it to the transaction.
2. Click “Check”.
The system compares the available transaction and document data, also taking the user profile information into account.
3. Correct and check again.
If the system finds a possible mismatch, the user can see what needs to be checked. If necessary, the data can be corrected and the check repeated.
As a result, bookkeeping becomes a process in which information can be checked as it is entered, rather than only when a declaration or annual report is due.
What does this mean for self-employed people?
Self-employed people often have to combine bookkeeping with their daily work. A hairdresser, photographer, programmer, trainer, lawyer, courier or another person carrying out economic activity may not be an accounting specialist, but still needs to keep track of income, expenses, documents and taxes. They also need to submit the self-employed person’s report on mandatory state social insurance contributions (VSAOI).
Pats.lv already provides self-employed people with income and expense tracking, report preparation, invoicing, document scanning, bank integration and other features. The new transaction check adds the ability to verify entered data to this process.
This can be particularly useful for someone who wants to do their own bookkeeping but does not want to compare every transaction manually in several places.
What does this mean for SIA companies?
Even a small SIA can have many accounting documents: purchase invoices, sales invoices, bank payments, VAT data, salaries and other transactions.
Pats.lv explains that when a company’s sole board member and shareholder handles the bookkeeping themselves, the new check can help spot issues before they reach a VAT declaration, a corporate income tax (UIN) declaration or the annual report.
It is important to stress that the system check does not replace a professional accountant or tax advice. It is a supporting feature that helps spot potential mismatches and organize the data.
Less manual work for accountants too
The new feature is not intended only for people who manage their own books.
A professional accountant also needs good-quality information from a client. If a receipt is missing, the partner details in an invoice and a transaction do not match, or the payment amount differs, the accountant must first find and clarify that information.
Transaction checking can help make this process more structured - possible inaccuracies are noticed first, and then the accountant can focus on questions that require professional experience.
This is one of the most significant benefits of accounting automation: automating routine checks while retaining the ability for a person to make decisions.
Does the system correct errors itself?
No. And that matters.
The check result is an aid, not an automatic verdict on whether a transaction is correct. If the system detects a mismatch, the user needs to review the documents, assess the situation and correct the data if necessary.
Likewise, not all 26 check points apply to every transaction. If a document or the system does not contain enough information, a particular point may be impossible to check.
This means the purpose of the feature is not to replace accounting knowledge, but to help find areas that need attention more quickly.
Accounting is becoming more digital and suited to individual needs
Digital tools are becoming increasingly important in business. Invoicing, bank transaction imports, receipt and invoice scanning, a tax calendar, reports and document records already help reduce manual work. The new transaction check adds another important element to this system - the ability not only to enter and store data but also to compare it.
Pats.lv offers various options and several subscription plans with different levels of checking.
What would such an accounting system offer an entrepreneur day to day?
Imagine a simple situation. An entrepreneur receives an invoice from a supplier, enters the expense in the accounting system and attaches the document. The system can then compare the invoice and transaction data.
If everything matches, the user sees that nothing needs to be corrected for that particular check point.
If a mismatch is found, for example in the partner name, the user receives a warning and can open the document, verify the information and correct the entry if needed.
This approach makes it possible to spot accounting errors earlier, while the documents are still available and the context of the transaction is easy to understand.
A new step toward simpler accounting
A good accounting program should do more than store data. It should help an entrepreneur understand what is happening in their accounting and where attention is needed.
The new Pats.lv transaction-checking feature is built around this approach. It compares document, transaction and available payment information, checks up to 26 different aspects and shows the user what is in order, what needs to be checked and what cannot be checked because data is missing.
This feature can be particularly relevant to self-employed people and small companies who want to manage several accounting processes in one place and notice possible mismatches in good time.
