You too can enjoy the benefits of digital accounting! But how?


January 12. 2025

Since 2005, I have been working with foreign clients, primarily from German-speaking countries. These are mostly companies whose headquarters are located in another EU member state, but which carry out some activities in Hungary that do not require a Hungarian company or a branch office, just a Hungarian tax number.

Since personal contact with foreign partners was not an option back then, all information exchange was done via email. The tax returns could be prepared from this, the taxes could be transferred from abroad, and as an authorized representative, we received messages from the tax authority in Hungary. Everything necessary for professional tax representation was in place. Many years went by like this, during which even basic communication tended to follow this direction.

In 2020, most of our clients who had previously preferred face-to-face contact also switched to phone consultations or online meetings. It was clear to me that I wanted to create a paperless digital accounting office, where all information arrives electronically, and we primarily communicate via email. This way, we save both time-consuming travel and the need for adjustment to each other’s schedules.

Our team members can work remotely, from home or anywhere they prefer, independent of time and location. This creates the opportunity for them to harmonize different aspects of their lives according to their needs.
 

What makes an accounting firm digital? 

 
  • Contact is made online: client inquiries primarily come from the website or via email. 
  • Data flows electronically: we do not accept physical paper documents. Clients upload their invoices to a dedicated storage space. 
  • For online invoicing systems, we request accounting access, where possible. If the client wishes, we can download the invoices issued by the company directly from the invoicing system. 
  • The accounting of bank transactions is facilitated if bank statements are sent to us electronically: xml, xls, csv, campt – depending on the bank. The pdf format bank statement is also essential, as it contains the opening and closing balances, which are essential, too. 
  • Another solution for importing bank data is to connect with the bank statement platform, bankszamlakivonat.hu, which allows third parties to access the bank data without being able to manage or transfer funds. The connection needs to be renewed every 90/180 days. 
  • Hungarian taxation has been fully electronic for a long time; tax returns are now only submitted electronically, and financial statements are published online. In case of a tax audit, invoices and documents must be scanned and attached. Not to mention that these must often be provided within a very short period, frequently within 3 days. The life of an accounting firm would be halted if we were to start scanning invoices upon receipt of a notification. I can’t even remember the last time I took paper documents to the tax office for an audit in a folder.
     

A digital accounting firm has the following advantages

 
  • Data transferred electronically from databases is accurate, and the risk of errors from manual processing is significantly lower. 
  • Automation speeds up data processing. 
  • There is no need for document transportation, which saves time for both parties. 
  • The client and the accountant can be completely separated by distance; choosing a local service provider is not necessary. 
  • Since every invoice and document is available electronically, it is easier to retrieve them. 
  • The business can also search for the saved data it needs without waiting for the accountant to find it. 
  • The system is more sustainable for the environment as well, using much less paper and reducing fuel consumption by avoiding unnecessary travel.
     

Like everything, being digital can have its disadvantages along with its advantages

 
  • The organization and storage of original paper invoices falls on your business. Although, it was always the client who kept them after the financial year’s closure.
  • Communication is mostly moved online, through online meetings, which may not be comfortable for everyone. 
  • The online infrastructure also has its costs. Now, instead of folders, we purchase or rent software. If I were to count how many software tools or online platforms we need to work with, I would easily end up with at least 20. 
  • The high demand for software and the rapidly evolving online world requires great adaptability from us and the entire accounting profession, not just to keep up with innovations but also to search for better solutions that simplify our work or improve our services. Over the past 5-10 years, the development has shifted into high gear, so alongside keeping up-to-date professional knowledge (which also undergoes frequent changes), we must also dedicate significant time to staying in step with the digital world. Frequent implementation of new software or online solutions has become part of our daily work.

Our digital accounting office serves clients who are entrepreneurs themselves eager to grow and open to new solutions. This mindset is not only welcome in terms of the administration that affects us, but it can also provide a competitive advantage in their own market.

Overall, I do not wish to return to the paper-based early days. In fact, I thoroughly enjoy searching for and trying out the latest solutions, from which we can choose the one that best meets our needs, even if it is a time- and energy-consuming process.

The long-term benefits of digital accounting are undeniable: efficiency, accuracy, and sustainability.

Livia Galfy