Founded 20 years ago, Gateway & Partners is a management consulting firm based in Latvia. The company specializes in assisting businesses with export sales activities, including market research and finding distribution or wholesale partners. With 11 offices across Eastern Europe, including locations in the Baltics, Moldova, Georgia, Romania, and more, the company employs about 15 people per office and engages around 20 freelancers each month for specific projects. Despite being relatively small with an annual revenue of approximately 1 million euros, Gateway & Partners is one of the largest players in its niche, handling 80 projects simultaneously.
Freelancer Management: A Burden of Contracts, Compliance, and Costs
Before adopting Abilio, Gateway & Partners faced several challenges managing freelancers, particularly around the complexity of tax compliance, as the payments were treated as royalty payments and required specific contracts prepared for each freelancer. This not only created an additional administrative burden, but also impacted the costs, which was the main reason for Gateway & Partners to search for an alternative.
The CEO Mārtiņš Tiknuss also shares that freelancers often do not know the full extent of the law applicable to them. Even if Gateway & Partners fully comply with all legal requirements, there are still certain responsibilities on the freelancer’s side, particularly in relation to tax compliance. In the past, he often received questions from freelancers about unexpected additional taxes they had to pay because they hadn’t properly declared their income. This added additional work and admin for Mārtiņš and his team.
Cutting Through Complexity: Abilio Delivers Control and Savings
When looking for a solution, Gateway & Partners was clear on what was the right fit for them.
“We considered a couple of Estonian companies, but they couldn’t offer a system where I could control the invoices issued. With Abilio, the freelancer does less, and we control how the invoice looks, what’s inside, and the issue process.” – Mārtiņs Tiknuss, CEO of Gateway & Partners
Mārtiņš also no longer is encountering his freelancers’ issues or questions with unexpected additional taxes, because Abillio is taking care of freelancers’ full tax compliance*, significantly lowering Gateway & Partners’ administrative burden.
However, the most impactful benefit that Gateway & Partners is experiencing since implementing Abillio, is the reduction of cost.
“Since using Abilio, the tax percentage on average has reduced by 4%. It’s a good cost-saving option for us.” – Mārtiņš Tiknuss, CEO of Gateway & Partners
Simplified Processes, Reduced Costs, and Greater Compliance
To conclude, Gateway & Partners has benefited significantly from using Abilio, especially in terms of tax savings and reducing administrative burdens. The system has proven to be a convenient and cost-effective solution for managing freelancers. Tiknuss recommends Abilio to other businesses, particularly those working with freelancers who may not be fully versed in complex tax laws, noting its value in simplifying processes and ensuring compliance.
*available in selected countries
