Guide
Double-entry bookkeeping
A system where every transaction is recorded twice: as a debit and a credit.
Double-entry bookkeeping is a system in which every business transaction is recorded on at least two accounts, once as a debit and once as a credit, so the books must always stay in balance. Thanks to this dual record you get a complete picture of assets, liabilities, equity, income and expenses, not just an overview of cash coming in and out. For an owner this means accurate financial statements, easier decision-making and compliance with the Accounting Act.
What you should know
- Every transaction is recorded twice (debit and credit) in the same amount, so the totals of the debit and credit sides must always match, which helps reveal posting errors.
- The system consists of the prescribed chart of accounts, the journal (a chronological record of all entries), the general ledger (organized systematically by account) and auxiliary, analytical records (customers, suppliers, fixed assets, inventory).
- All legal entities (LLCs, joint-stock companies and other companies) must keep books by double entry, while a sole trader may be taxed on a lump-sum (pausal) basis or keep business books, either by simple or double entry, except where the law requires double entry.
- Difference from simple bookkeeping: simple bookkeeping is based on the income and expense ledger (KPO) plus a few auxiliary records and does not produce full financial statements, whereas double entry produces a complete balance sheet and income statement.
- Annual financial statements are prepared from the books and filed with the Business Registers Agency (APR); for entities whose business year equals the calendar year the deadline is, as a rule, 31 March of the following year.
How we handle it
- 01 Onboarding and review We take over your documentation, existing books and opening balances, and align the chart of accounts with your activity.
- 02 Recording transactions Based on valid source documents we record every transaction by double entry in the journal and general ledger, as a debit and a credit.
- 03 Analytical records We maintain sub-ledgers for customers, suppliers, fixed assets and inventory, and regularly reconcile balances (IOS) with your partners.
- 04 Controls and taxes We check that accounts balance, calculate VAT and other tax obligations, and file the returns within the statutory deadlines.
- 05 Reports and filing We prepare the balance sheet, income statement and annual financial report and file it with the APR, alongside regular reports for your decisions.
Company formation
We register your company with APR and handle all tax and banking obligations.
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