The type of legal form chosen for doing business will have a major impact on the relevant tax liabilities, as will the size of the projected revenues. In addition to these, a number of other factors can also affect the tax burden, e.g. whether the company has a company car, whether it has employees, what benefits the company provides, etc. Within certain thresholds, there are a number of tax options, which require deep analysis and careful consideration.

There are a number of strategies to reduce the tax burden, such as taking advantage of tax incentives, increasing tax efficiency, providing tax-free benefits and tax planning. The accounting law also provides a number of options for accounting for specific economic events, so the accounting policy chosen can itself have a significant tax impact as well.

Micro, small and medium-sized enterprises operating in Hungary typically have to comply with the Hungarian accounting rules, the main piece of legislation being Act C of 2000 on Accounting. In addition, accounting can also serve as a management information system, providing an opportunity to keep more detailed records than required, providing detailed information to owners and management as needed.

To manage your accounting processes effectively, it is important to use the right software and tools, to carry out regular accounting exercises and to seek the help of expert accountants or tax advisors. Without proper record keeping, chaos is practically guaranteed.

Accounting errors can have serious consequences, such as penalties from the tax authorities, poor ownership and management decisions, loss of credibility with investors and partners, and legal problems.