Accounting in Spain
Our firm provides full-charge Bookkeeping Services, including Bank Statement
Reconciliation,
General Journal and Subsidiary Ledger Maintenance, receivables, payables, and
payroll management. We prepare financial statements in accordance with Generally
Accepted Accounting Principles (GAAP) for use by banks, investors, and other
third parties. Our firm will also prepare custom financial reports for internal,
managerial use.
The
most important appointment is at the end of the financial
year (after the third quarter), planning to ensure the
year's result is the desired one. There is
no much to do after the financial
year is over
There may be different ways we can offer the
accounting services:
- Email us or post us all the
receipts (invoices, bank statements, etc).
- Enter receipts data in a
quite simple accounting software, and email us
monthly an exported file.
- We report quarterly by email a profit and loss account,
and an interim balanced sheet.
Controlling in Spain
If your business is like most you offer more than one type of product or
service. How do you know which product offerings have the best margins once all
related costs are factored into the equation? The truth is most managers are
surprised to learn what their true gross and net margins are once they have
allocated the fixed and variable expenses. While this information is crucial to
know where your business should focus its assets, cost accounting can be
difficult to set up and monitor on a regular basis. We are experts at using
accounting data bases to create the information you need. We are also experts at
detailed ad-hoc profitability analysis using your accounting software and
Microsoft Excel.
How can we help you
- Cost accounting: if you carry a monthly budget control,
is a good way to separate cost centers
- Controlling/CFO: we can configure cost
accounting parameters and adapt to budget model, report monthly, comparative
data: real-budget-last year.
- Budgeting & Forecasting: Knowing how well your business is doing this
year can frequently be difficult if you do not have a yardstick to measure
your performance against. An annual budget is merely that, a yardstick to help
you gauge your performance and help you manage your expenses. We can help you
establish a budget within your accounting software.
- Our firm provides complete financial and business forecasting services,
including proforma projections. We will also customize -What If- planning
scenarios to help management foresee and plan for unexpected business
contingencies.
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• Commercial Code (Código de Comercio) Royal Decree 22-8-1885, revised by Law
18/1989
• Spanish National Chart of Accounts (Plan General de Contabilidad) Royal Decree
1643/1990
• Corporations Law (Ley de Sociedades Anónimas) Royal Decree-Law 1564/1989
• Limited Liability Companies Law (Ley de Sociedades de Responsabilidad Limitada)
Law 2/1995
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The Spanish National Chart of Accounts (Plan General de Contabilidad),
aproved by Royal Decree 1643/1990 is of obligatory application for all
companies.
Contents of the Spanish National Chart of Accounts:
Part I Accounting principles
Part II Chart of Accounts
Part III Accounting definitions and relationships
Part IV Financial statements
Part V Valuation rules
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Principle of prudence
Going-concern principle
Recording principle
Cost principle
Accrual principle
Matching principle
No-offset principle
Consistency principle
Materiality principle
Spanish "Generally Accepted Accounting Principles" are very similar to the US
GAAP.
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Commercial Code requires all enterprises to keep orderly accounts that are
suitable for their business activities, to keep a book of inventories and
balances and to keep a journal.
Also enterprises must submit the statutory books to the Mercantile Registry in
the place in which their registered office is located, in order to be
authenticated.
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The annual financial statements are consisting of the balance sheet, the
income statement and the notes to financial statements. These documents jointly
form a single body of information.
The whole mercantile regulation about accountant concentrate its efforts in
these documents, as expression of the enterprise’s networth, financial situation
at a given moment, and the annual results.
Enterprise’s directors must submit the financial statements to the Mercantile
Registry in the place in which their registered office is located, in the next
month after the approval of the annual financial statements for the ordinary
stock holder’s meeting.
The annual Statements and the management report placed in the Mercantile
Registry are public documents and any body can ask for a copy of them. Six years
is the deadline to access to this information.
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