FAQ

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What does accounting mean?

 

Accounting means recording the business and financial transactions of a company taken place in the past in a prescribed form. In practice it means the accountant enters the sales invoices and invoices of cost into an accounting software, on the basis of this the result of the transactions (profit or loss) and the payable taxes are calculated and then the tax declarations and reports are prepared and submitted to the authorities until the deadlines.

 

What documents are needed for accounting?

  • invoices of cost
  • sales invoices
  • invoices/documents of petty cash transactions
  • bank account statements
  • contracts

 

What documents and information are provided by the accountant?

  • balance sheet
  • profit or loss statement
  • general ledger
  • subledgers and other supporting analytics

 

What do the documents/information provided by the accountant show?

Balance sheet: It shows the total value of assets of a company at a given date of time (typically it is the end of the business year but it can be intra-year as well), in other words it shows what assets - real estate, machines, equipment, intellectual properties, securities, inventories, receivables, cash and cash equivalents - the company has, and further it demonstrates from what financial resources they were acquired – equity loan, bank loan, lease or other loan.

Profit or loss statement: it shows the revenues and costs/expenditures of a company within a period of time, which can result in a profit or loss.

General ledger: it shows the cumulative balances of all the business transactions within the business year.

Subledger: it shows the details of all the business transactions within the business year.

 

What is the responsibility of a company?

  • the content of invoices issued or accepted by the client
  • preparation of the relating contracts and documentary evidence of compliance
  • the financial settlement of invoices of cost
  • management of petty cash, make remittances
  • handover of the documents needed for the preparation of tax declarations

 

What is the responsibility of the accountant?

  • accounting in line with the Act on Accountancy and making the client observe the law
  • preparation of tax declarations and filing them until the deadline
  • informing the client about possible irregularities in its operation
  •  informing the client about which records have to be kept by him and how to do it to be in line with the regulations