When am I required to audit the annual accounts?
When during two consecutive years you meet at least two of these three limits: assets exceeding 2.85 million euros
How is the distribution of dividends recorded and limited?
After approval at the meeting of the application of the result, a liability for “dividend payable” and the corresponding withholding for the partners are recognized.
What is the legal reserve and when must I fund it?
Every period you must allocate 10% of the year’s profit until the legal reserve reaches at least 20% of the share capital.
How do I calculate and use the hourly cost to set prices for services?
For this type of situation, you must allocate direct and indirect costs (such as billable hours), add an objective margin
How are business property leases treated from an accounting and tax perspective?
From an accounting perspective, you record the lease expense and incorporate it. Remember that from a tax perspective, the expense is deductible if it is necessary and justified
Does confirming affect the financial image and accounting?
Supplier confirming does not alter trade payables unless there is a condition that allows reclassification to financial debt.
How do I account for impairment due to customers’ inability to pay and does not doing so have any effect?
It is important to recognize an impairment loss when there is evidence of uncollectibility. The transparency of your accounts is also…
What allows one to opt for the special cash basis scheme in VAT?
It allows you to defer payment of the charged VAT until full collection or a deadline in the following year. It requires including specific mentions…
When can I apply the PGC PYMEs (SMEs)?
For your company to still be considered an SME and be able to use the special accounting plan, it must: not have assets exceeding 4 million euros
Are there books and accounting records that are mandatory for my new SL?
Of course, in this case for your business venture, you must remember to keep the Daily Journal and the Book of Inventories and Annual Accounts
