Double entry bookkeeping 2023

This book is for everyone who wants to learn double-entry bookkeeping properly! It focuses on the most common accounting operations that occur in business practice. It is also suitable for current complex practice – we analyse changes in the area of tangible and intangible assets, especially the abolition of the intangible assets category from the perspective of the Income Tax Act.

We will also briefly touch upon the upcoming 2023 tax package, especially the continuation of extraordinary depreciation for assets acquired in 2022 and 2023 and the increase in the threshold for mandatory VAT registration. We also focus on the possibility of carrying back a tax loss or the new rules for equity distribution according to the Business Corporations Act. The explanation begins with generally accepted accounting principles, and the basic building blocks of double-entry bookkeeping are analysed in detail.

This is followed by an analysis of accounting examples by account class, from tangible fixed assets, through inventories and receivables, to equity accounts, costs and revenues. The examples are solved by posting to accounts, using historically used account numbers. The costs and revenues are accompanied by basic tax implications, e.g., the calculation of tax depreciation or the creation of allowances for receivables.

We pay great attention to the closing of accounts, the preparation of the balance sheet, the profit and loss statement and the notes. The book contains separate chapters with examples on preparing the statement of changes in equity and a number of examples on preparing the cash flow statement. Finally, the obligations of a legal entity after the preparation of the financial statements are discussed, i.e., the obligation to prepare an annual report and a report on relations between related parties, the approval of the financial statements by the general meeting and their disclosure. An important chapter is also the accounting for the payment of a share of profits and its tax implications.