Fiscal Obligations and Accounting Records for Businesses

Posted on Dec 18, 2024 in Mathematics

Item 5. System of Accounting Records of the Company and the Initial Registration of Operations

5.1. Formal Fiscal Obligations for the Individual Entrepreneur

General Obligations VAT

Obligations of Taxpayers

The taxpayer is forced to pay VAT to the Treasury. Their duties are:

  • Submit the statement of the beginning of the activity (i.e., starting at the farm), which is the census declaration.
  • Request the NIF / CIF
  • Issue and deliver bills and keep duplicates
  • Keeping the accounts
  • Present VAT returns and payments (take a day)

Books and Records

  • Record Book of Invoices Issued:

    Record all invoices, tickets, and receipts. Even register those exempt of VAT and consumption.

    Each bill must have -> No fra, issue date, completion date if different dispatch, the recipient (customer data), BI, tax rate, and tax charged.

    It is counted one by one (invoice is posted to a different seat). There are two options:

    1. When there are different VAT rates: when the same invoice is recorded in 2 seats.
    2. Group several invoices in a seat if they meet certain requirements: they are numbered, are the same date, same tax rate (VAT), does not exceed 100 € BI. We must put on the invoice date, the initial number and final invoice, ticket, global share, BI total. In general, there is no standard model. Companies must have a copy to classify.

  • Record Book of Invoices Received:

    Should be numbered consecutively, often called the reception number -> have to appear issued data (supplier) CIF or NIF, BI, tax rate, share, data from the receiver.

    You can make a bill more seating if you have different VAT rates and several bills a seat.

    You can if you have the same date, same provider, numbered consecutively. Each invoice does not exceed 500 € BI. The total amount does not exceed € 6000.

  • Record Book of Investment Goods:

    Just what are the companies that have operations subject to VAT and other exempt property is used to record investment and VAT share purchase follows the company or investment goods (ANC). During 4 years, tracks the investment goods. 5 + 10% of various makes the adjustment.

    Ex.1)

    We bought a 2011 Audi for € 36000 + VAT (€ 6,480 VAT).

    30% exempt.

    70% transactions subject -> 4536 follows (in 6480).

    2013

    50% exempt

    50% of transactions subject -> 6480 • 50% = € 3240

    4536-3240 = 1296 to pay.

    Land or buildings if the review is 9 years.

    It contains: purchase invoice, the date used, applied pro rata, regularization applied.

These 3 books have all sorts of businesses. Some companies will save these books. They have the special VAT regime.

Simplified system -> e.g., BAR does not take control of the bill. Is a flat fee.

RE AGP

Charge equivalence -> e.g., Those who sell at the market.

How to Carry Books, Proceedings, and Conversation

Has to be sorted by date, clarity, and accuracy. There should be no erasures or scratches.

The books can be physical and computer formats, but at the end of the year have to bind. Saved 4 years but capital goods are 9 years old.

5.2. Organization of a Basic System of Bookkeeping for the Company

Organization of Book-Entry System

When a company begins its accounting, it organizes the accounting system used to plan, as does the accounting …

To organize its accounting system takes into account:

  • The volume and scale of operations
  • Complexity of the company
  • Specific information and control your need
  • Internal organization of the company

Points Required for the Basic System

  1. Commercial and tax legislation referred to the books and records which the company must perform.
  2. The need to record and value their assets. Establish accounts and subaccounts.
  3. The need to control and identify in greater detail stocks, commodities, goods … We must control the value, detail, quantity, etc. There is a book to accomplish this book called auxiliary storage. Inventory is made and is posted each day.
  4. The need to monitor the outstanding amounts payable. Control who and what we owe. In that period shall be paid and the payment method. Payment ledger controls the amount due, payment …
  5. The need to monitor the outstanding amounts of receivables. Ledger of receivables is where you say the amount you must pay when we pay, how … Control who owes us, and so on.

Other Books and Records Assistants

  • Books auxiliary box: used to control cash receipts and payments.
  • Books ancillary suppliers and creditors, is used to control the amount of purchase, how much and to whom, at what price, etc.
  • Books auxiliary clients and debtors who register will have sold, how and who.
  • Books subsidiary banks: used to control the movement of bank accounts.

Models Auxiliary Books and Records

  • Book Store: control of entry and removal from storage. For each product has a tab. Each has, date of entry or exit, quantity, price, value … also the ending balance remaining in the store.
  • Books auxiliary to control the portfolio of pay, to whom we pay, conditions, amount, method of payment. It is divided into 2 books: subledger payables (liabilities that we have implemented with a bill of exchange, 411 and 401) and subsidiary ledger of pay (debts that are not manipulated by bill of exchange, 400 and 410).
  • Books auxiliaries for the control of the portfolio collection: book recording what is outstanding, conditions, number … There are 2 books (same as above). This well know the debit account receivables.

5.3. The Supporting Documents for the Accounting of Transactions

In a company, there are many documents, and for each operation, there is at least 1 document. All documents must bear the accounting department. The most common documents are:

  1. Bills and invoices issued and received valued both
  2. Corrected invoice, both clients and debtors issued as received from suppliers and creditors.
  3. Records store. It has to make a document for every case that comes out.
  4. Billing and payment documents. May include: bank charges, receipts, photocopies, Banker …

Everyone must be filed and sorted. They must also be traceable. Of all the documents must have a copy and the documents that are extinct.

5.4. The Accounting for Initial Operations (When Starting an Activity is a Series of Accounting Entries)

There are 4 operations:

Initial Capital Contribution

Haber Accounts (100, 101,102) Capital mercantil. Fondo companies with a social enterprise without a commercial manner. Capital individual companies.

Accounts must be realized that the transfer. Active (572, 570) and any account of the 200.

Acquisition of Fixed Assets and the Specific Costs of Building the Company

  • Accounts Sub intangible assets 20. There are 3 common accounts: patents, trademarks, and administrative concessions
  • Accounts of tangible fixed assets

    Subgroups 21, 22, and 23.

    21: land, buildings, machinery, facilities, transport items, computers, and furniture.

    22: land and buildings purchased as an investment, we plan to sell or rent.

    23: any item of plant is under construction, assembly, or adaptation.

  • Fixed asset suppliers

    Those who are long-term group 1 -> sub 16 (related parties) and 17 (unrelated parties). The 161 is used more 121 (immobilized suppliers long-term related parties). Subgroup 173-175 (long-term fixed providers, suppliers long-term fixed points change).

    Group 5 -> sub 51 (related companies) and 52 (foreign companies unrelated). Using the 511 (short-term fixed providers related parties) and 523, 525 (short-term fixed providers, fixed providers to pay short-term effects). To be connected must be taken into account: a company is part of the domain group and there is a company over another.

    Commands the other. Associated company that is considered 20% of voting rights.

    A company is bound because it has some influence.

  • Specific expenses of the company building

    Accounts group 6 (626.623).

  • The VAT paid on acquisitions of property, plant, and start-up costs

    All expenses and purchases that have VAT on sales to 472 and the 477.

    VAT is assessed quarterly to finance and large companies monthly.

Terms of Valuation of Initial Operations

  1. When something is valued at the cost of acquisition or production.
  2. All additional costs of operation are allocated to the same account.

Recruitment of Basic Services and Supplies

Electricity, water, telephone, gas, Internet access … Subgroup 62.

Rental Real Estate for the Establishment of the Company

The companies start spending so many renters. When is a landlord who rents and tenants who pay rent.

Rent-Amount (621)

Bond sub-Constitution 26 (long term), 56 (short term).

VAT (472)

Withholding tax and accounting records to be retained: the rent we pay, the landlord pays income tax when renting to an individual (475)