Double-entry and simple bookkeeping

We know two systems of accounting, simple and double-entry accounting. Bookkeeping, as well as who has to guide it and in what way it is regulated in Act no. 513/1991 Coll. The Commercial Code, as amended, and Act No. 431/2002 Coll. on Accounting as amended.

Double-entry bookkeeping

Double-entry bookkeeping is the type of accounting that must be used by anyone who is a business company (s.r.o., a.s., v.o.s., k.s.) or a natural person registered in the business register voluntarily or obligatorily as well as cooperatives. Double-entry accounting can also be referred to as double-entry bookkeeping, bookkeeping, bookkeeping, double-entry accounting.

How to charge
It is charged in the form of double-entry registrations. Each accounting case must be posted to at least two accounts, once on the left (MD) and once on the right (D). Competing accounts are those on which the same accounting cases are accounted for. Compensatory entries are the records of accounting cases on both sides of at least two accounts.

This is the Framework Account Plan for Entrepreneurs, which has 235 accounts. The real businessman uses no more than half. Profit or loss is a difference in income and expense in double-ended bookkeeping. This is important when determining the tax base. In double-entry bookkeeping, it is important to know that if revenue is generated, revenue will not be gained immediately.

Simple accounting

Simple bookkeeping (or simple bookkeeping) is a type of accounting that is not in the proper sense of accounting because it is not accounted for in the accounts. It is much easier because it is only a comparison of income and expenditure. Double-entry bookkeeping is mandatory for selected entities. Simple is not mandatory and it is up to you to choose it if permitted by Act no. 513/1991 Coll. Commercial Code as amended and Act No. 431/2002 Coll. on Accounting as amended. It may be a natural person not registered in the business register (eg tradesman, interpreter, lawyer, expert, physician, geodet, civil engineer …)

How to charge

In this case, it is important that the assets and liabilities are known at the beginning and end of the reporting period. During the period under review, various accounting books and income and expenditure records are also kept.

It shall be charged in the following books:

  • moneybook
  • book of receivables
  • book of commitments
  • auxiliary books

Simple bookkeeping accounts consist of:

  • Statement of Assets and Liabilities
  • statement of revenue and expenditure