HOW TO ISSUE AN INVOICE AND REPORT PETTY CASH

Objective

This training program is designed to provide companies with a comprehensive understanding of Hungarian accounting practices, focusing on how to issue invoices and report petty cash. The goal is to ensure that employees are proficient in Hungarian compliance, regulatory requirements, and efficient day-to-day operations.

The goal is to equip accounting staff with the necessary skills and knowledge to issue compliant invoices and manage petty cash reporting in Hungary.

overview

1. Introduction to Hungarian Accounting Regulations

Objective:

To introduce Hungarian accounting standards, tax laws, and compliance requirements for businesses operating in Hungary. This foundational understanding is necessary for accurate bookkeeping and financial reporting.

Content:

  • Overview of Hungarian accounting standards (aligned with EU regulations)
  • Key tax regulations: VAT (ÁFA), corporate income tax, local business tax
  • Importance of compliance with NAV (Hungarian Tax Authority) requirements
  • Common penalties for non-compliance

2. Issuing Invoices in Hungary

Objective:

To provide detailed instruction on how to issue invoices that comply with Hungarian regulations, including mandatory elements, VAT rates, and invoicing software.

Content:

  1. Mandatory elements of a Hungarian invoice (e.g., issuer and recipient details, invoice number, description of goods/services, VAT number, total amount, payment terms)

    • Explain how failing to include required elements leads to penalties and non-compliance.

  2. VAT regulations in Hungary

    • Different VAT rates (5%, 18%, 27%) and when they apply

  3. Electronic Invoicing (e-Invoicing) in Hungary

    • Overview of mandatory e-invoicing rules (NAV integration)

    • Tools: Using NAV’s online invoicing system (Online Számla)

  4. Common mistakes and best practices for issuing invoices

    • Case studies of common invoicing errors and their consequences

3. Reporting Petty Cash

Objective:

To guide participants on best practices for managing and reporting petty cash in Hungary, ensuring proper recording and reconciliation to comply with Hungarian laws.

Content:

  1. Definition and importance of petty cash management

    • Importance of controlling petty cash for minor day-to-day transactions

    • Legal limits and requirements for petty cash transactions in Hungary

  2. Petty cash voucher: Necessary elements

    • Date, transaction amount, description of purchase, authorized signatures, etc.

    • Explanation of how improper petty cash management can lead to discrepancies in tax filings and audits

  3. Reconciling petty cash

    • How to regularly reconcile petty cash with accounting records

    • The role of petty cash in the company’s balance sheet and monthly financial reporting

  4. Cash handling procedures (including security and internal controls)

    • Who is responsible for petty cash, setting up approval processes, and ensuring transparency

  5. Best practices for petty cash in multinational companies

4. Practical Session – Simulating Invoice Issuing and Petty Cash Reporting

Objective:

To provide participants with a hands-on session to apply what they’ve learned about invoicing and petty cash reporting.

Content:

  1. Issuing invoices: Practical exercise

    • Participants will issue a series of sample invoices based on provided scenarios

    • Participants will use NAV’s online invoicing tool and accounting software

  2. Petty cash reporting simulation

    • Participants will record and reconcile petty cash transactions using provided petty cash vouchers and logbooks

    • Participants will perform a petty cash audit and reconciliation based on company records

Why These Elements Are Important

  1. Compliance with Hungarian regulations: Failure to issue proper invoices or manage petty cash can lead to fines, tax penalties, and legal issues.

  2. Understanding VAT regulations and invoicing software: This is essential for companies dealing with cross-border transactions, especially between Italy and Hungary.

  3. Efficient cash management: Proper petty cash management ensures transparency, reduces discrepancies in financial reports, and prevents fraud.

  4. Practical application: Hands-on sessions ensure that theoretical knowledge is applied in real-world scenarios, improving the learning experience and retention.

 

By following this structured training plan, Italian companies can ensure their accounting departments are well-equipped to handle Hungary’s invoicing and petty cash reporting requirements.

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