Choosing the right accountant is a crucial decision for any business that is establishing itself in Hungary.
A good accountant will help you keep good books of records, comply with tax commitments, and ensure that the business operates within the regulations of the country. The best part is that Hungary has few to no accounting certifications, and there are lots of bookkeepers, so you can choose the one who fits your requirements the best. However, as Hungary has its own regulations, it is important to know the regulatory framework of Hungary, thereby saving your time on non-value-added activities. So here is how you choose your next partner in accounting, Hungary.
Essential Accounting Qualifications and Certifications in Hungary
The accountants in practice in Hungary must have the necessary qualifications or certifications as per the Hungarian accounting standards. Further, depending on the type of accounting service, the professionals must have registration and qualifications as required by the Hungarian authorities.
The most basic certification is the Hungarian certified accountant, which allows a person to undertake all the basic accounting functions. A Hungarian certified accountant is a person called a mérlegképes könyvelő. This certification ensures that the person has the right skills and knowledge for bookkeeping. Besides the mandatory qualifications, an accountant must also have other skills, such as the ability to comply with the legal framework, an eye for detail, and an analytical approach to interpreting complex accounting transactions.
Ensure that the individual is qualified accordingly and that they have obtained all due authority for the requirements of your service.
Understanding of Hungarian Tax and Accounting Regulations
Regulatory qualifications are just the starting point. The credentials of the Hungarian accountant should also include a comprehensive understanding of the accounting standards, corporate tax, value-added tax, employment taxes, and filing requirements in Hungary.
In the case of services being provided to the Hungarian subsidiary of a foreign company, hiring an international accountant prevents a business from falling into compliance that may be required in the host country.
Further, the regulatory environment in Hungary is highly dynamic. Hence, the accountant should also have an eye towards keeping up to date with the latest in Hungarian taxation legislation.
Experience in Your Industry Sector
In most cases, the competency of the professional will be largely framed in the area of accounting practice. Therefore, it is important to consider if the professional is experienced in the sector your business is working in, the size, and the complexity of needs.
For example, a startup company that is looking to establish operations in Hungary has very different needs compared to an already established corporation. Similarly, a business that deals with complex international transactions has different requirements as opposed to a business with many employees.
Before going forward with the accounting company in Hungary, make sure to check the credentials of the accountants you are potentially assigning to these parts and what services are included. They can include bookkeeping, payroll, tax filing, as well as related issue-solving with the tax authorities.
Conversation Points When Interviewing the Accountant
A great set of conversation points:
- What formal qualifications and memberships do you have?
- Have you worked with similar businesses before?
- Do you help non-Hungarian-owned businesses?
- What is in your accounting and tax offer?
- Who will look after my accounts?
- How do you keep your clients informed of changes?
- What software do you use?
- How do I get documents and financial information to you safely?
Plus anything else that you need to know about costs, timings, how you will communicate, and what you need to do?
Choosing the Right Hungarian Accounting Partner
Hiring an appropriate accountant will rely on combining the best professional qualifications, experience, and up-to-date local knowledge. Businesses should ask for proof of this knowledge while selecting an agency to support their business in its specific structure and reporting requirements.
Reviewing these elements will help when looking to set up a secure process to manage your accounting and financial compliance in Hungary.
