In this interview, she shares insights into her career journey, the challenges of uniting three countries under one accounting function, and the future of accounting in an increasingly digitalized world.

What inspired you to pursue accounting, and how did your career lead you to Leinonen?

I have always been drawn to exact sciences, especially mathematics. By the 10th grade, I was sure I wanted to study economics. I earned a bachelor’s degree in economics and a master’s in accounting and finance from Vilnius University. My career in accounting began during my bachelor’s studies when I had an internship at a local accounting firm. I immediately fell in love with the field and have been in it ever since.

Before joining Leinonen, I worked in a small accounting firm handling clients from various industries, then moved to an in-house accounting role at a furniture manufacturing company. While this was an exciting experience, I realized I missed the dynamic nature of working with multiple clients. That’s when I applied to Leinonen, and everything happened very quickly—I sent my application late in the evening, and by the next morning, I had already received a call for an interview. The company’s values, culture, and professionalism stood out to me immediately, and even after 10 years, I still experience that “wow” effect working here.

It has been nearly a year since the Baltic countries were unified under one accounting function. What were the biggest challenges you faced in this transition?

This year has been full of challenges—some expected, some surprising. I had to build my team from scratch, familiarize myself with different accounting regulations and processes in Estonia, Latvia, and Lithuania, and establish a unified working culture. For the first two months, I focused solely on learning how things functioned in each country before implementing changes.

The biggest challenge was shifting the mindset from working as separate national teams to thinking as one Baltic unit. Each country had operated independently for 30 years, so bringing everyone together required careful communication and collaboration. It was a bumpy road, but I enjoy the process because it allows me to create something valuable for both employees and clients.

How do you ensure seamless collaboration among teams in Lithuania, Latvia, and Estonia, considering cultural and regulatory differences?

Strong communication is key. At the beginning, people were understandably cautious, wondering what kind of leader I would be and how things would change. However, I am an empathetic person who values listening and teamwork. My approach has been to work closely with employees, understand their perspectives, and integrate the best practices from each country rather than imposing one country’s way of doing things on the others.

For example, Estonia is known for its highly digitalized tax and business environment, while Lithuania and Latvia follow more traditional frameworks. We are taking Estonia’s best digital solutions and applying them where possible in the other two countries. Similarly, clients in Lithuania and Latvia often value a more personal approach, which we are integrating into the overall Baltic client experience.

The accounting industry is rapidly evolving with automation and AI. How do you see the profession changing in the next five years?

Automation is already reshaping accounting, and this trend will continue. Simple bookkeeping tasks will become fully automated, and accountants will shift towards advisory roles. Instead of manually entering data, accountants will analyze reports, provide insights, and act as strategic advisors to clients.

At Leinonen, we are already seeing this transition. Clients expect us to be more than just bookkeepers—they want financial advisors who can help them make informed business decisions. Those who embrace technology and develop analytical and advisory skills will have a strong future in the industry.

Those who embrace technology and develop analytical and advisory skills will have a strong future in the industry.

Dovilė Pundinienė

What has been the client response to the unification of the Baltic accounting teams?

The feedback has been overwhelmingly positive. One of the biggest benefits for clients is the introduction of a single point of contact for multiple countries. Previously, if a client operated in Estonia, Latvia, and Lithuania, they had to coordinate with separate accounting teams in each country. Now, they have one key accountant managing all three countries, making communication and reporting much more efficient.

Clients appreciate the simplicity and consistency of this approach. They no longer need to juggle multiple contacts and can receive unified financial insights for their operations in the region.

Leinonen operates with strong Finnish values. How does this set the company apart from local firms in the Baltics?

When I first joined Leinonen, I immediately noticed the difference in culture compared to local firms. The Finnish approach to business emphasizes transparency, fairness, and employee well-being. For example, during the Christmas season, Leinonen gives employees additional paid time off to spend with family—small things like this show that the company truly values its people.

Many employees at Leinonen stay for a long time, and I believe this is because of the supportive environment. The company provides growth opportunities, invests in its employees, and maintains a strong ethical foundation.

Leinonen values transparency and professional growth. You have embraced this by building a strong presence on LinkedIn—what inspired you to become so active on the platform?

It started when we worked with an HR agency that introduced us to the concept of employee ambassadorship. I took part in a training program on LinkedIn strategy and decided to become an ambassador for Leinonen. At first, it felt a little intimidating, but I quickly realized the power of sharing insights and engaging with professionals.

Now, I see LinkedIn as an opportunity to contribute to the accounting community, connect with industry leaders, and attract potential employees and clients. Some of our new hires have even mentioned that my LinkedIn presence influenced their decision to apply to Leinonen.

You have a demanding leadership role. How do you unwind in your free time?

I love reading, especially leadership books and detective novels. If I find a great book, I can stay up half the night reading it! Traveling is another passion—whether it’s exploring different cultures, enjoying nature, or simply experiencing new cuisines. I also enjoy painting by numbers—it’s a very relaxing activity that helps me switch off from work and focus on something creative.

Maintaining work-life balance is crucial. While my role is demanding, I make sure to set aside time for hobbies and family.

What are your professional goals for the coming years, and what advice would you give to those looking to grow in their careers?

My priority is to continue strengthening the unified Baltic accounting function at Leinonen. I see a lot of potential for further integration and growth. On a personal level, I have some career goals that I am working towards, but I will keep them as a surprise for now!

My advice to others is to dream big and take action. Small steps lead to big achievements. Hard work, curiosity, and a willingness to embrace change have shaped my career, and I believe they are essential for success in any field.

A huge thank you to Dovilė for sharing her insights and experiences with us! It was fascinating to hear about her journey and the future of Baltic accounting under her leadership. We wish her continued success and look forward to seeing what the future holds for her!

The post Dovilė Pundinienė on Shaping the Future of Baltic Accounting appeared first on Leinonen Global.

¹ The annual basic exemption is up to EUR 7,848 (EUR 654 per month). For the persons who are in an old-age pension, the tax-exempt income will be EUR 9,312 per year (EUR 766 per month).

² According to article 30-2 of the Law on CIT the limitations will also be imposed on the deductibility of the purchase price and rental costs of cars. The new deduction regime will refer to the CO2 emissions of the car. Article 12(6) of the Law on CIT will also be repealed and the income of healthcare institutions for services financed by the PSDF will be classified as taxable income.

The post Tax Rates in the Baltic Countries appeared first on Leinonen Global.

• Private health, life insurance,
• Full or partial compensation of health and sports expenses (e.g. participation fees in public sports events, gym membership etc.)
• Professional development (e.g. foreign languages training),
• Compensation for installation of workplace at home (as a second workplace),
• III pillar pension payments by the employer,
• Company stock options (employee option).

An employee option is a way of motivating employees, when an agreement is concluded between the employee and the employer, according to which the employee is given the right to purchase shares of the company he works for at a discounted price or for free at some point in the future.

Options are an excellent motivational tool that encourages effective contribution to the improvement of performance as the employee is given the right to become a shareholder of the company in the future. Options can give the employee the opportunity to buy a portion of a company’s stock for free or at a very low price (agreed price). The option contract gives the employee the right, but not the obligation to purchase the company’s shares in the future. At the end of the term specified in the option contract, the employee has the right to choose whether to buy the shares or not.

Please find a taxation overview of the options below.

Additional comments about Lithuania

Additional comments about Estonia

Additional comments about Latvia

The post Innovative Employee Benefits in the Baltic Countries: Stock Options appeared first on Leinonen Global.

How did you decide to become a lawyer?

I didn’t start my career thinking I would be a lawyer. At first, I studied finance and worked in audit. But during my internship, I realized I was more interested in what my legal colleagues were doing. Their work in compliance and risk management caught my attention, and I thought, “This is something I want to do.”

So, I decided to study law. While I was in university, I got a job in a sworn attorney’s office. This gave me hands-on experience early in my career. I realized that learning on the job helped me understand the law much better than just studying it in class. That decision to get real-world experience made all the difference for me.

What was it like to move from Latvian law to managing compliance across many countries?

The move was both exciting and challenging. When I started at Leinonen, I focused on Latvian legal matters. But over time, I took on more responsibility, eventually working on projects for the whole company. This new role required me to think globally, not just locally.

I had to learn about different legal systems and how to create rules that work in 11 countries. It pushed me to grow as a professional and as a person. It’s a lot of responsibility, but I enjoy the challenge. Working across many countries has made me a better problem-solver and helped me see things from different perspectives.

How do you keep up with the laws in 11 countries?

Keeping track of laws in 11 countries is a big challenge, but I follow a clear system to manage it. I work closely with local legal experts in each country. These experts help me understand the specific rules and practices in their regions. Their advice is especially helpful for understanding details that are hard to find on my own.

I also spend a lot of time researching European Union regulations. Many of the countries we work in follow EU rules, like GDPR or anti-money laundering laws. Staying updated on these regulations helps me understand how they will affect local laws.

Communication with our country managers is very important. They often spot practical problems or legal changes early, so we can solve them together. I also use technology to track updates and organize my work. Tools like these save time and make it easier to manage large amounts of information.

Finally, I rely on my network of legal contacts. When I face a complex or unfamiliar issue, I can reach out to colleagues for advice. By combining local expertise, EU research, technology, and teamwork, I ensure that Leinonen stays compliant in all our countries. It’s challenging work, but it’s also very satisfying.

How has working internationally helped you grow?

Working with people from different countries has taught me a lot. Every country has its own way of doing business, and I’ve learned to adapt to those differences. For example, some places like to move quickly, while others take more time to make decisions.

It’s also made me better at handling complex problems. International work requires you to think carefully and consider many viewpoints. Personally, I’ve become more patient and understanding. This job has pushed me to keep learning and improving, which I find very rewarding.

How does technology help with legal work?

Technology has completely changed the way lawyers work, making many tasks faster and more efficient. For example, document management systems help organize large amounts of legal documents, ensuring nothing is lost and making it easy to find what you need. AI tools are especially helpful for drafting simple legal documents, reviewing contracts, or summarizing large sets of information. These tools save a lot of time, allowing me to focus on more complex and strategic tasks that require personal judgment.

Research is another area where technology makes a big difference. Instead of spending hours searching through books or websites, I can use advanced tools to quickly find updated laws, regulations, or case studies. This speed helps me stay on top of changes in the legal field and better support our business.

However, technology also comes with risks, especially when handling sensitive data. Tools like AI often rely on data to learn and improve, so it’s essential to use secure systems to protect confidential information. At Leinonen, we are very careful about how we use technology. We follow strict rules to ensure that sensitive information stays private and that our tools are used responsibly.

Overall, technology helps us work smarter and stay competitive in a world that is changing quickly. It doesn’t replace the need for human expertise, but it complements our work by saving time, improving accuracy, and giving us better ways to solve problems. By using the right tools and being mindful of risks, technology becomes a powerful partner in legal work.

Is it difficult being the only legal expert in a company focused on accounting?

At times, it can feel lonely. I don’t have legal colleagues in the same office to discuss complicated issues with. But I have a strong network of friends and contacts in the legal field, and I often reach out to them for advice or ideas.

My colleagues at Leinonen are very supportive, even if they don’t have legal backgrounds. They help me understand the business side of things, which is just as important. Together, we find solutions that work for both the legal and operational sides of the company.

What advice do you have for young women starting careers in law?

Believe in yourself and don’t be afraid to take on challenges. The legal field can be tough, and sometimes people might underestimate you because of your age or gender. Use that as motivation to prove them wrong.

Believe in yourself and don’t be afraid to take on challenges.

It’s also important to have mentors who can guide you. Find people who support your growth and push you to do better. Remember, hard work and confidence can help you break down barriers. Things are improving, and more companies, like Leinonen, are becoming inclusive and supportive places to work.

How do you relax and manage stress?

Work-life balance is very important to me. Leinonen has a great culture that encourages employees to take care of themselves. I make time for hobbies like reading or spending time with family and friends.

When work gets stressful, I remind myself to step back and take a break. Sometimes, just a walk or a cup of tea can help clear my mind. I’ve learned that taking care of yourself isn’t just good for your personal life—it makes you better at your job too.

What is your vision for legal compliance at Leinonen?

I believe compliance should be a natural part of our company culture, not just a checklist. Instead of reacting to problems, we should focus on preventing them. This means creating strong legal systems that are clear and easy for everyone to follow. When compliance is simple, it becomes part of daily work without feeling like extra effort.

Educating employees is also important. When people understand why compliance matters and how it supports our goals, they are more likely to follow the rules. Providing clear guidelines and regular training helps make this happen.

At Leinonen, we are already making good progress. We use technology to track changes in laws, manage data, and handle routine tasks. This helps us stay ahead while building trust with clients. My goal is to keep improving these systems and make compliance a strong foundation for the company’s future success.

What is your proudest achievement so far?

Becoming the Director of Legal Compliance at Leinonen is something I’m very proud of. It’s a big responsibility, but it’s also an amazing opportunity to make a difference.

This role has allowed me to grow professionally and contribute to the success of a company that values ethics and innovation. I’m grateful for the trust Leinonen has placed in me, and I’m excited to keep building on what we’ve achieved so far.

Sigita’s journey from Latvian law to managing compliance in 11 countries reflects her dedication, adaptability, and innovative spirit. Her contributions to Leinonen Group have strengthened its compliance framework while inspiring others with her focus on growth and balance. As she continues to lead with passion and precision, we wish her every success in her career and look forward to seeing the positive impact she will undoubtedly create in the years to come.

The post Sigita Zvejniece Leading Legal Compliance Across Borders appeared first on Leinonen Global.

This new initiative will affect all local and foreign-owned businesses that send or receive invoices to or from suppliers or clients in the EU. With some countries being further ahead than others in the implementation of standardised electronic invoicing systems, it is important to stay up to date on ever-changing deadlines and requirements. 

What is Electronic Invoicing? 

Electronic invoicing (e-invoicing) is a modern and fully digitalised way of exchanging invoice documents between suppliers and buyers. An e-invoice is not the same as sending a PDF invoice or using an accounting software. Rather, e-invoices contain secure, machine-readable data that can be imported into a buyer’s Account Payable (AP) system automatically. E-invoicing is more secure and accurate than traditional invoicing; with no manual input of data required, the risks of human data entry errors are eliminated. 

Why is the EU Switching to Mandatory E-invoicing? 

The VAT in the Digital Age (ViDA) initiative aims to ensure the fair and efficient collection of VAT for businesses selling services or goods to customers in the EU. First proposed in 2022 by the European Commission, this plan aims to fight tax fraud by introducing measures like new VAT reporting obligations and single EU VAT registration. Digitalisation is a large part of this initiative, with switching to electronic invoicing being the first step. 

When is Full E-invoicing Being Introduced in the EU? 

2028 is the current planned timeline for switching to electronic invoicing, but each country is free to establish its own timeline. Lack of digitalisation across many companies means the changes are slow, requiring a great deal of time and expertise to implement. For example, e-invoicing should already be in place for B2G, however the realistic picture is different. Technical obstacles and a lack of preparedness from governments mean it is still a way off in most EU countries.  

Considering the above points, 2030 is perhaps a more realistic prospect for the full switch to e-invoicing in the EU. 

Which Countries Already use E-invoicing in the EU? 

Scandinavia have adapted to electronic invoicing the best so far. Finland, Norway and Estonia already have functioning e-invoicing systems for B2G. Estonia and Finland also use e-invoicing for B2B. In Norway, electronic invoicing is not yet compulsory, but it is widely used. 

What is the Current E-invoicing Picture in Other EU Countries?* 

• Having failed to meet an earlier goal of July 1, 2024, France’s current target is September 1, 2026. 

• Romania has a new economic system and is making some slow progress towards electronic invoicing. 

• Spain has no deadline at present. 

• Hungary introduced a centralised anti-VAT fraud, real-time invoice reporting (RTIR) model in 2018. 

• Germany’s target for bringing internal B2B e-invoicing up to EU standards is January 2025. 

• Italy successfully switched to electronic invoicing on January 1, 2024. 

• Belgium is in the planning stages. E-invoicing for internal B2B taxpayers is expected by January 1, 2026. 

• E-invoicing is mandatory for B2G in public requirement cases in Lithuania, but does not have to be in accordance with EU standards. The overall deadline is unclear, but there are some talks of 2026. 

• At the end of 2023, Ireland held a public consultation with businesses (mainly SMEs) on current thoughts on and barriers to the modernisation of VAT administration with e-invoicing. 

• In Latvia, the Ministry of Finance (FM) submitted a draft amendment to the Accounting Law for public consultation on May 24. This amendment stipulates that invoices will have to be issued as a structured e-invoice. It has been proposed that this will come into force on January 1, 2025 for companies issuing invoices to budget institutions. For other companies, the change will be applicable from 2026. 

*It is important to note that none of the above dates are guaranteed to stay the same – they are often altered. 

What if a Business Does not Want to Move to E-invoicing? 

Ultimately, the move to e-invoicing in the EU is mandatory. This means that if a company does not make the switch in time, they will be subject to sanctions or disadvantages. For example, VAT registered businesses may not be able to apply relevant VAT reductions. Not moving to e-invoicing would also mean a company cannot work with partners who have switched. And for companies with a yearly income of more than €40k, non-compliance will ultimately result in a fine. 

How can Leinonen Help Businesses Prepare for E-invoicing in the EU? 

For more than three decades, Leinonen have been providing expert accounting, payroll and tax services for local and foreign-owned businesses in the EU. With current operations in 11 countries, our 240+ cross-border and local experts have more than 1500 satisfied customers.  

Depending on where in the EU a company is located, making the switch to e-invoicing can be challenging and time-consuming. But with the most accurate and up-to-date knowledge on constantly shifting e-invoicing requirements and deadlines across the EU, Leinonen can make the transition a breeze. 

To find out how Leinonen could help your local or foreign-owned business prepare for e-invoicing in the EU, arrange a consultation today. 

The post New E-invoicing Laws appeared first on Leinonen Global.

Please share a bit about your career journey, from your time in the banking sector to becoming the country manager for Lithuania, and now the Baltics Manager. 

I was always interested in business, therefore I decided to study business administration and management. Disregarding smaller that I had during my studies, my career started when I joined Nordea, a major bank in the region, as a project manager, where I worked on internal projects and learned about the inner workings of large organizations. I also spent some time in Copenhagen, developing internal IT systems for Nordea. 

After returning to Lithuania, I joined Swedbank and worked with business clients on digital solutions, eventually becoming a department head managing a team across the Baltics. My team focused on delivering digital solutions like Swedbank’s Internet bank and the banking app. 

Following my tenure at Swedbank, I became the CEO of a local bank. During this period, I started studying for a master’s degree in management at ISM (University of Management and Economics) where I met managers from different industries, which broadened my perspective about business in general. 

I was then approached by Leinonen and was impressed by the values and vision shared by Seppo and Petteri. Their commitment to employee well-being and strong business ethics convinced me to join the company.  

How is it to work as a Lithuanian, who is used to a fast-paced work style, with people from the Nordics? 

It’s been quite an experience. I had already gained some experience with the Scandinavian work culture during my time at Nordea, which in itself is a company made of a merger of about 250 banks. Even while physically working in Lithuania, I had my team based in the Baltics and the Nordics. 

There are differences in work styles, of course. Lithuanians tend to be rather strict, aiming to complete tasks quickly and at a high level. In contrast, the Nordic approach is generally more relaxed and analytical, taking time to consider all aspects before making decisions. This can sometimes be a struggle for someone used to a faster pace. However, there are benefits to both methods. The Lithuanian style ensures efficiency and quick results, while the Nordic style promotes thoroughness and well-thought-out decisions. 

Finding a balance between these approaches is key. While it can be challenging, it also leads to comprehensive and well-executed outcomes. However, if you are too slow, it can be frustrating even for a Nordic person. Overall, working with people from the Nordics has been a valuable learning experience, and I’ve come to appreciate the strengths of both work cultures. 

You joined Leinonen in April last year and became the Baltics Manager in less than a year. How did this happen, and how would you describe the transition from being the Country Manager for Lithuania to managing the whole Baltics? 

It was a combination of good timing and organizational readiness. When I joined Leinonen in April, the company was ready to take the next step in its development. I was fortunate to be in a position to help with that transition. The management decided to entrust me with the role of Baltics Manager, and I’m very grateful for that. 

My experience at Swedbank, where I led a Baltic team, was valuable. I had previously combined three local units into one Baltic team, creating common processes, structures, and ways of working. This experience was directly applicable to my new role at Leinonen, where I’m now building something similar on a larger scale. 

Having already led Baltic teams, I knew what to expect and how to communicate effectively across different countries. This familiarity helped me greatly in my transition. 

What do you think is the big advantage for clients now that the Baltic countries are unified under one structure at Leinonen? 

To give some examples, many companies we work with are becoming regional or are already operating regionally. They are looking for efficiencies, the ability to leverage a larger organization for better expertise and investments, and more streamlined processes. 

For instance, when we want to sign an agreement with a mobile network operator, dealing with three separate countries can be a lengthy process. Ideally, we want one point of contact who can provide services across all three Baltic countries, offering us one contract instead of three. This unified approach saves time and simplifies operations. 

This unification is crucial because our clients are also moving in this direction. They prefer working with a single company across multiple countries. For example, a client expanding from Latvia to Lithuania wants to work with the same company in both countries. If we can’t offer that, they’ll look for someone who can. 

Ultimately, everything we do is for the client. Our internal needs are secondary, and we must follow our clients’ needs to provide the best service. 

It’s been about four months since the change. Have you seen any positive impact, especially from the client’s perspective? 

I think the biggest positive change is yet to come. We’re still in the early stages of harmonizing our processes and understanding the intricacies of each country. This change also led to some managerial shifts, which created some initial instability. However, the clients we’ve introduced to this new way of working have given us positive feedback, especially those who were already our clients in other countries. They appreciate the shorter and more efficient communication lines, which meet their expectations for better service. 

What were the challenges regarding employees, and how did employees adjust to the new structure, especially since many leading positions went to Lithuanians? 

Lithuania is the largest of the three countries, both in revenue and personnel. It just happened that we had the strongest people (who are Lithuanian) for some of the key positions in the new org. structure. This fact of course does not mean that Lithuanians are better managers than Latvians or Estonians. Not at all. As an organization we promote people to higher positions based on the value that they bring to the company.   

Different work cultures are a challenge. Lithuania tends to work faster, while Estonia has a more methodical, Nordic approach. We respect each country’s specifics and try to ensure that our employees are not overly stressed. The key is balancing differences while working towards common goals and high standards for our clients. 

As a leader, how do you ensure your employees feel well-supported while maintaining the necessary authority and respect? 

Managing a company is a complex task, which requires expertise in many fields. What I try to do is to create a team of top professionals and build circumstances for them to do what they do best.  
I feel that in the Baltic management team we have created a good and welcoming atmosphere where members feel that they can speak openly, get their point across freely, and steer the conversation in the direction that they wish. What matters most is not who proposed the decision, but whether the decision that we made is the right one. This is important, because those decisions influence how we as an organization perform, how our employees feel at work and how our clients perceive our services.  

Speaking about authority, I think that in the Baltics (especially in Lithuania and Latvia) it comes naturally with the manager’s position even before one gets to know the person. Managers often seem distant, strict, and even intimidating. I think that this perception is changing. And one of the reasons behind it is that there are many new young managers coming into companies with international experience, where this old-school management by orders is a thing of the past. 

Attaining authority based on merit (in other words, based on what you have accomplished) is of course much more difficult. In the Baltics we have a brilliant management team of energetic professionals, who strive to be excellent at what they do. I have no doubt that even after this short period of running the Baltic organization they have proven themselves to the whole organization to be the leaders that can take Leinonen to the next level. 

You always have positions with a lot of responsibility, especially now in Leinonen. Do you ever get tired of it, or do you enjoy it? How do you maintain a good work-life balance, and what kind of activities do you enjoy in your free time? 

I do enjoy it. Of course, there are times when I get tired, but I generally thrive on the responsibility. What I do is I try to make sure to draw a line between work and personal life. I rarely work from home; I usually leave my laptop at the office and focus on home activities like walking my dog, reading books, and doing sports. For weekends, I enjoy traveling outside of the city with my wife. I think it’s important to have interests outside of work to keep a healthy balance.  

You have achieved a lot in your career and hold a high position at Leinonen. What advice would you give to those who feel they are not successful yet?  

It might sound cliché, but being curious and trying new things is crucial. When I am selecting someone for my team, I want a person who is active, knowledgeable, eager to learn, and has a drive to improve. For example, if a question is posed to the team and no one knows the answer, it’s great when there’s someone that takes the initiative to find out and comes back with the answer. This kind of curiosity and proactive attitude is invaluable. It builds trust, and you start relying on this person for more tasks and responsibilities. So, my advice is to stay curious, be ready to take on more, and don’t be afraid to face challenges. Always be open and active in your work. 

Changing the structure inside a company is difficult, but with the right team, everything is possible. Povilas Sadaunykas’ role is one of the key elements in this, and it was interesting to hear him share the benefits of unifying the Baltic countries under one structure at Leinonen, highlighting improved efficiency and client satisfaction. He also reflects on the challenges faced during the transition and emphasizes the importance of curiosity, proactive learning, and balancing authority with approachability to become a successful leader. We wish Povilas continued success in his journey and look forward to seeing the positive impact he will undoubtedly continue to make. 

The post Navigating Leadership in the Baltics: Povilas Sadaunykas’ Journey  appeared first on Leinonen Global.

On the flipside, larger companies with many employees usually have more complex payroll calculations to handle. And businesses operating cross-border must navigate a whole new set of intricacies.

Outsourcing payroll can help a business:

1. Save time.

Manually managing payroll is a laborious, intensely time-consuming task. For small business owners doing this singlehandedly, time constraints may become overwhelming. With expert input to streamline procedures and automate as much as possible, businesses can save hours of precious time each month.

2. Avoid mistakes.

Not only do mistakes with things like overtime, holiday pay and sick pay cause practical issues, but they may also reduce your employees’ trust in you. And while a single accountant cannot be expected to have the expertise to resolve every possible scenario, a team can pool their knowledge and efficiently find the right solution in the most unique situations.

3. Communicate accurately and efficiently.

With an automated payroll system set up by experts, payroll information can be communicated to employees clearly. Detailed breakdowns can quickly answer employees’ questions around how their take-home pay has been calculated (e.g., why sick leave salary is different).

4. Improve security and confidentiality.

By entrusting all payroll services to one provider that prioritises the anonymity and confidentiality of personal and financial data, you can minimise the number of individuals with access to sensitive information. Payroll data can also be encrypted and password protected when sent to employees.

5. Access specialists.

Employment and tax laws are constantly changing, and these alterations can be hard to keep up with. This may be particularly true if you are operating in a new country. An accounting firm with local knowledge can be consulted for advice on these complex issues and changes.

6. Guarantee accurate tax calculations.

Calculating tax and deductions correctly will prevent unnecessary and costly interactions with bailiffs. Tax laws vary from country to country, so if you are operating in a new territory, hiring an accounting firm with local expertise is highly recommended.

To find out how Leinonen can help your company stay compliant with local laws while streamlining and automating payroll processes, arrange a consultation today.

The post 6 Great Reasons to Outsource Payroll appeared first on Leinonen Global.

Can you tell us about your career journey? How did you get started in the accounting and financial services industry?

I learned accounting after high school in Budapest and got a B.Sc. degree. Then I went to Austria where I learned tourism and management for two years and completed my second B.Sc. degree in business administration in The Netherlands in 2000. I completed my internship in a five star hotel in Budapest, and it seemed to be a unique combo of accounting and tourism management, because they instantly offered me the position of CFO. I was only 24 when I found myself not only in the management of a 310 rooms hotel, but in the middle of the renovation of another one as CFO and even CEO for a while. Beside accounting, budgeting, reporting, team leading, legal issues were all on my desk. This was the time of 09/11 and the huge crisis in tourism afterwards when we had to think out of the box to survive. I quit after 5 years and moved to investment and insurance business with a lot of personal interactions, negotiation and sales techniques, presentations, trainings, time-management, team leading and self-development. I gained a lot of skills that are extremely useful in both business and personal life in ten years. After a shorter story with financial management of IT startups who got venture capital from EU funds, I got to Leinonen Hungary in 2016 when they were looking for a Country Manager with some accounting background.

How would you describe your leadership style, and how has it evolved since you started working with Leinonen, a Finnish company?

It was rather strange to work in such a quiet office…

I always aim to reach a consensus and agreement in the targets, tools and solutions. I do not intend to dictate or press; I rather want a cooperative team climate where the professional people know their tasks and freely ask if they have any doubt or problem. We built a very good team during the recent years. On the other hand, I have to get rid of micromanagement and let my colleagues utilise their knowledge and talents.

The Finnish business culture was a kind of shock to me. The instant trust and freedom in daily operation and decisions I was given was completely new for me. As long as the targets are clear and we move in the right direction, there are not many questions and hassle.

Can you share your insights on fostering teamwork and collaboration in Leinonen’s culturally diverse environment?

Since I have lived in various countries and I had classmates from over 20 countries, cultural diversity is not an issue for me. I enjoy working with people with different background and finding the common points in thoughts and solutions. Cultural diversity is present not only in the Leinonen family, but among our clients as well. Communicating with them from Australia to Korea and USA makes this work really challenging and joyful.

Regarding tough decisions, the Covid time was the best occasion to practice it. My team proved to be very cooperative and flexible. Accountants are told to be rigid and resistant people, but all of them were open to new solutions and improvements that are crucial not only in crisis management but also in the current boom of technological development. Cold blood and strategic thinking should overcome the first shock and all the decisions should properly backed up with a clear vision.

How have recent global events, like the COVID-19 pandemic and the Ukrainian conflict, affected business operations and strategies in Hungary?

The COVID-19 was like a big boost to our technological development. We had plans to gradually implement remote work and cloud solutions, and we suddenly had to arrange everything in a few days. It took three weeks and we were all working form home with all the necessary equipment. It was also a great chance to convince our clients about the advantages of paperless operation. This a standard since then and my colleagues could not imagine to work with papers again.

The war in Ukraine was the next crisis, but it mostly impacted us mentally, since it is in the neighborhood and there is a significant Hungarian minority as well. The uncertainty in the first few weeks was hard, and we helped our colleagues leaving Kiev. Our business was not hit because we did not have clients from any involved country.

What approach does Leinonen Hungary take towards building and maintaining long-term relationships with clients?

As I learned from the company’s owner Petteri Leinonen, there are three key factors to choose a colleague: professional knowledge, English language skills (these can be improved), and the right personality. This latter one is crucial and we can not change it. Personal interactions are still very important even in the era of technology and AI. We receive countless feedbacks from customers that they stick with us because the personal relationship is very good. Being there when they face a challenge that might not be related to our scope of services gives a lot to the engagement, especially because we mostly work with foreigners who need support in the local environment.

Where do you see the accounting industry heading in the next 5-10 years, especially in Central and Eastern Europe?

We are just getting to know the possibilities offered by artificial intelligence. This will definitely determine the coming years. But I do not agree with the opinions about the disappearing accounting jobs etc. Business people still understand their business and do not want to deal with increasingly complex regulations. They will need business assistants who know the local regulations, manage the administration and can advise in new situations.

How do the economic policies of the Hungarian government influence the business environment, particularly for international companies?

The Hungarian government has a clear concept of the development of the economy for over a decade. The tools are related to the local traditions and mentality. We have the highest general VAT rate in the EU, 27%. This is easy to collect, hard to hide and it is related to consumption. On the other side, taxes on revenues have been gradually cut. The lowest tax on corporate profit (9%), the flat income tax (15%) all serve the same goal: produce more, earn more, and spend what you need and want.
Foreign investments are welcome, and Budapest’s economic predominance is also slowly decreasing thanks to the huge new investments coming to rural cities. We currently face with very low unemployment, therefore the improvement of efficiency is the next step to make – also at Leinonen Hungary.

How do you like to spend your free time? Do you have any hobbies or interests that you’re passionate about?

My main hobby is my family. We have three kids, and they love horse riding and show jumping. This activity consumes most of our free time and gives the pleasure of time together outdoors in the nature. I also like reading and building model airplanes, which helps me relax and recharge.

Could you share what you find most rewarding about your role at Leinonen and your vision for the future, both personally and professionally?

I already experienced a tremendous development of the local company in the recent years. We have laid the foundations for further development. The next target is to grow further and become a visible company in the Hungarian market. This again requires new tools, solutions and processes, as well as a very active market presence.

As we wrap up Ákos’s story at Leinonen Hungary, his unique leadership has clearly steered the company through many changes, blending his rich background with the Finnish work ethics. His approach emphasizes teamwork, innovation, and a close-knit relationship with clients, all balanced with his passion for family and hobbies. Let’s look forward to seeing how Ákos continues to shape the company’s path forward.

The post Ákos Journey: Leading with Vision and Values at Leinonen Hungary appeared first on Leinonen Global.

Can you briefly introduce yourself and tell us about your journey with Leinonen? 

I have been working in Poland and the CEE region for many years in different finance-related positions and always in Finnish-rooted organizations. Leinonen combines nicely both financial services and Finnish roots as the slogan “a very Finnish accounting office” states,  so it was a natural step. In previous positions, I have been on both sides of the table, meaning providing and buying financial services, so I felt I could also provide some insights and ideas to Leinonen services and portfolio.  I started in Leinonen 1.4.2020 and not enough that it was April Fools’ Day, but it was also the very first day of the total lockdown due to COVID-19. The whole country was closed, and we were forced to work remotely, so in fact I met my new team for the first time face-to-face after three months. 

As someone originally from Finland, how has your Finnish background influenced your approach to managing the Poland office? 

My team could better answer this, but I think the Finnish way is low hierarchy and open doors. I try to be easily approachable and listen to ideas and opinions. I emphasize straightforwardness, transparency, and a can-do attitude, which leads to quick decision-making and agile business. It is also valued by our clients that I can relate to those entering the Polish market; I understand their background, expectations, and assumptions.

I try to be easily approachable and listen to ideas and opinions. I emphasize straightforwardness, transparency, and a can-do attitude, which leads to quick decision-making and agile business.

What are the primary goals and objectives you have set for Leinonen Poland for this year? 

We have of course our hard targets linked directly to our everyday work. Our vision is to be part of the infinity game, meaning that we’re here to stay. This makes continuous improvement very important and our goal currently is to build a solid foundation for future development and utilize the technical possibilities enabled by the legislation (such as planned obligatory e-invoices in Poland).   

How do you build teamwork and get your team to work well together? 

We have regular team meetings where we discuss and share different topics. It’s very important that everyone can have a say and contribute; more junior team members have a chance to learn from more senior specialists etc. We have also put extra effort into increasing the awareness of the importance of communication, both internal and external, in the form of training and exercises. We have some celebrations as well, last summer we organized a Summer Days meeting in Poland for whole the Leinonen Group, and locally we meet for Christmas, etc. When teams get to know each other better, it’s also easier to work together.   

How has the shift to remote work impacted Leinonen Poland’s operations, and what strategies have you employed to ensure productivity and cohesion among team members? 

I think this is not an issue anymore. The hybrid work model is a standard nowadays; we do have our office days and remote workdays. The situation now is different than at the beginning of the pandemic time. Now we’re in the driver’s seat and decide how to organize the work in the best way, and we’re not forced to do full-time remote work. Everyone is familiar with the equipment and online tools and the teams are utilizing them impressively well for communicating with each other’s, clients or generally organizing the work, so I haven’t observed any major changes in the efficiency. In our business, the work is anyway very task-oriented, and cyclical (monthly, quarterly, and annual) and we need to deliver on time regardless of the circumstances.   

How do you ensure continuous professional development for your team members and yourself? 

We organize internal and external trainings regarding the legal or tax changes etc., and support with the courses or other ways to increase and improve professional qualifications. We also follow Leinonen Group projects e.g. there is a new program for Team Leaders, which focuses more on management skills.

How do you recharge and maintain a work-life balance, especially given the demands of leading a team? 

I have a dear adulthood hobby, discgolf (also known as frisbee golf) which is the best way to switch off completely from work. Discgolf means hours of outdoor exercise, techniques of throwing discs, and strategy on how to play in different courses in varying terrain or changing weather conditions. You may play with or against others (in a tournament), but mostly it’s about challenging yourself and playing against your own weaknesses.    

What advice would you give to someone aspiring to take on a leadership role in a multinational organization? 

It’s hard to give advice, but at least I have always tried to be open-minded but very clear about my expectations and communication. Having the right people in the right place is very important and I believe very much in teamwork and encourage it.

We extend our heartfelt thanks to Maria for sharing her journey and insights with us. To our readers, thank you for joining us on this enlightening journey. We look forward to bringing you more inspiring stories from our team at Leinonen.

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What Gross Salary is? 

To start with, let’s define what gross income means based on the Eurostat Glossary. If we take the total cost of an employee’s salary it would consist of the employer’s and employee’s tax burden along with social contributions and the amount employee receives as the net income. So, in practice, gross salary is the sum of employee’s net pay, taxes and social contributions. Meaning that social contributions paid by employer are not included and that’s where the core of the comparability problems starts to show. 

Now what if the government shifts all or part of its employer’s social security costs to employees. That would increase the gross salary of an employee, but not affect his net pay or affect the amount of taxes paid. So, the employer pays the same cost in total, the government gets the same amount of taxes (employee + employer), and the employee gets the same net pay. Seemingly no change, but there is a significant increase in gross salary. A comparable and illustrative example of a country that shifted most of its employer’s social security contributions to employees is Lithuania. They have done this labor taxation reform in 2019, you can read more on our news covering this change or find a brief overview in the OECD Library. 

A practical example of how gross salary compares 

To see how Lithuania compares with other countries let’s take the Baltic region as an example and compare how the total cost of employment breaks down. 

As you can see comparing gross salaries in this region would not bring us an understanding of what an employee’s net pay is and/or total cost of employment for the employer. While we bring the example of the Baltics, it applies to all countries and regions in the EU and beyond. The extant might be bigger or smaller, but the idea stays the same. 

Why is it important to acknowledge the difference? 

We have already explored the statistical effect that such a change has, and this could be crucially important to consider when making decisions based on such data. As an employer, when comparing the cost of employing in your cross-border business or planning business expansion abroad you need to consider the total cost of employment not just gross salary. As an employee, when choosing to move abroad be sure to understand that a higher gross salary does not always mean higher net income. 

If you are running a cross-border business, you will also find the gross salary comparability issue worth considering in decisions on the remuneration of your employees. For example, you might decide to introduce a bonus system for your sales resources that would pay 5% of the sales they make in the Baltics. If you simply translate it into gross income, roll out the model saying that 5% of all sales are going to be gross income for the sales manager. Then you will have a significant difference in return on such investment, as in Estonia you would have to add a bit below 34% of the employer’s social contributions as a cost, while in Lithuania only 2%. So, in Estonia, this would mean the actual cost of almost 6,7% from sales, while in Lithuania stays at the same level of 5%. 

In summary, while gross salary is a common metric in salary discussions, it can be misleading due to differences in taxation and social contributions across borders. Employers and employees alike must consider the total cost of employment and actual net income for accurate financial planning. Understanding these nuances is crucial in cross-border business to ensure informed decision-making and equitable compensation strategies.

In case of any questions, feel free to consult with Leinonen team. Further contact details can be found HERE. Stay informed about our latest news by following Leinonen on LinkedIn.

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