You do not need to be an accounting expert to run a small business. Knowing a few basics will help you understand what is happening in your company.
The Spanish General Chart of Accounts (PGC)
The PGC defines the accounts you must use. Some of the most common:
- 430: customers.
- 400: suppliers.
- 572: bank accounts.
- 700: sales of goods.
- 600: purchases of goods.
Accounting entries
An entry records an economic movement. Each entry has debit and credit lines that must balance. For example, when issuing a sales invoice:
- Debit: 430 Customers (the customer owes you).
- Credit: 700 Sales (income) and 477 VAT collected.
ERP DLM creates this entry automatically when you issue the invoice.
Balance sheets
- Trial balance: breakdown of all accounts with movements.
- Profit and loss: result of the financial year (income minus expenses).
- Balance sheet: assets, liabilities and net equity.
ERP DLM generates these reports in real time, grouped by fiscal year.
Closing the financial year
When closing a year, result accounts are regularized, the VAT to be refunded or paid is calculated, and everything is prepared for the following year.
Conclusion
Accounting does not have to be an obstacle. ERP DLM automates entries and gives you the reports you need. Try it free.