Modèle idéal pour la gestion de la comptabilité des sociétés anonymes. Le plan comptable est structuré selon le schéma PME et présente les registres clients/fournisseurs. Il y a des comptes en devises étrangères et des centres de coûts.

Modèle idéal pour la gestion de la comptabilité des sociétés anonymes. Le plan comptable est structuré conformément au régime des PME. Il y a des centres de coûts.

Modèle idéal pour la gestion de la comptabilité de personnes morales. Le plan comptable est structuré conformément au régime des PME. Il y a des centres de coûts et la gestion des clients et fournisseurs.

Plan comptable structuré pour gérer une entreprise dont le chiffre d'affaires annuel n'excède pas 500'000 CHF. Avec TVA et des centres de coûts.

Pour gérer les comptes d'une petite entreprise individuelle. Le plan comptable est structuré avec des groupes et sousgroupes et centres de coût.

Pour gérer les comptes d'une petite entreprise individuelle avec TVA et centres de coût.

Realiza un seguimiento profesional de los gastos e ingresos de un yate o velero. Sin necesidad de experiencia en contabilidad.

Software de contabilidad para yates fácil de usar. Archivo de cuenta predefinido con un plan de cuentas, con una lista completa de gastos (motor, tripulación, administración, invitados) e ingresos, que pueden ser fácilmente adaptados a tus necesidades específicas.

Este modelo de contabilidad proporciona.

• Cuadro de cuentas predefinido con gastos (motor, tripulación, administración, invitados) e ingresos, que pueden ser fácilmente adaptados a tus necesidades específicas. Subdivisión también para crucero.

Cómo empezar

• Primeros pasos en la contabilidad de ingresos y gastos.
• Utilizando una plantilla de contabilidad.

PayPal import transaction

Banana has an import filter that allows you to directly import the PayPal transactions data in your accounting file. 

The attached files are predefined with the accounts so that you can start immediately using it.

There are two template example files you can download and open in Banana:

• Accounting file with EUR as a Basic Currency
• Accounting file with USD as a Basic Currency

Files suitable for

These template files are especially suitable in case you have only one PayPal preferred currency.

The imported transactions will automatically be imported to the currency account, so that you can separately see all transactions.
If in PayPal you keep balances in different currencies, it will be more suitable to use a PayPal accounting in Multicurrency.  

Even if you use another accounting software, you will find that is very efficient to keep a separate accounting in Banana and keep your PayPal accounting  in it. Instead of recording all transactions in your accounting solution, you can keep a separated accounting in Banana and once a month or when needed, only record the summary movement for the period in your accounting solution . 

Further adapting the file

The file can easily be adapted to suit your needs.

Adding new accounts and new currencies

• In the Accounts table, add new accounts for other currencies or for different Income or Expense types.

Changing to another Basic currency

This file can easily be converted into one with another Basic currency.

• Change the Basic currency in the File properties.

Add VAT/Sales Tax, change language or convert into another type

Use Convert to new file to add more options or change the accounting file settings.

PayPal import transactions

Banana has an import filter that allows you to directly import the PayPal transaction data into your accounting files. 

The attached files are predefined with the accounts so that you can immediately start using it.

There are two template example files that you can download and open in Banana:

• Multi currency accounting with EUR as a Basic Currency
• Multi currency accounting with USD as a Basic Currency

Files suitable for

These example files are especially suitable in case you have PayPal transactions in different currencies and especially if you have set up your PayPal account to use and keep different currencies (see also PayPal template for Double-entry accounting) .

The imported transactions will automatically be imported to the currency account, so that you can see all transactions separately and have a balance in the currency.

Even if you use another accounting software, you will find that is very efficient to keep a separate accounting in Banana and keep your PayPal accounting in it. Instead of recording all transctions in your accounting solution, you can keep a separated accounting in Banana and once a month or when needed, only record the summary movement for the period in your accounting solution . 

Further adapting the file

The file can easily be adapted to suit your needs.

Adding new accounts and new currencies

• In the Accounts table, add new accounts for other currencies or for different Income or Expense types.

• Add new currencies in the Exchange rates Table

Changing to another basic currency

This file can easily be converted into one with another Basic Currency

• Change the Basic currency in the Accounting properties.
• Adapt the Exchange Rates table with the appropriate currencies and exchange rates.
• In the Accounts table, change the currency for the accounts that need to be in Basic currency.

Add VAT/Sales Tax, change language or convert into another type

Use the Convert to new file command to add more options or change the accounting file settings.

使用Banana财务会计软件，做专业的复式记账会计，一键生成资产负债表，损益表。多语言多汇率，使用中文做账一键点击生成外文报表。

创建您的文件

• 从该模板开始，创建一个新文件（模板编号+10680），使用在文中所解释的任何一种方式。
• 文件菜单→文件和账户属性命令，设置公司名称，会计期间及本位币。
• 文件菜单→另存为命令保存文件。以公司名称和年份作为文件名很有用。
  例如“公司-2020.ac2”

文件和账户属性

• 账套
  此标签可以编辑账套的信息，账套名称，开账日期和结账日期，以及记账本位币。
• 选项
  此标签可以激活会计发生业务所需的功能。
• 地址
  此标签中可以填入该会计账套的公司或个人信息，这些信息会做为本公司信息显示在给客户开具的发票中。
• 外汇
  此标签中选择汇兑损益的会计科目代码。
• 增值税
  此标签中选择应交增值税的会计科目代码。
• 其它
  此标签中选择做账的语言和出报表的语言。
• 密码
  此标签中设置账套密码。
• 文字
  此标签中可以输入额外的信息，比如会计的名字。

编辑账户表

账户表格内显示有资产负债表及损益表的账户。

• 资产负债表显示所有资产账户的余额，即资产和负债。资产与负债之间的差额决定了个人资本。
• 损益表显示所有收入和费用的账户，它们的差额决定会计年度的损益状况。

所有的账户都可以根据您的需求进行客制化的编辑。例如，可以更改账号或摘要，可以在期初列内输入初始的余额，可以添加账户并且删除那些不需要的账户。

创建您的预算

在预算表格内，您可以输入指定年份的预估收入和费用。

• 列出每月费用和收入
  例如，在办公室的租金中输入日期，重复，摘要，费用，借方账户，贷方账户和金额。
  也可以会月收入执行相同的操作，并输入预估的收入。

输入会计发生业务

在会计发生业务表格中，输入实际的会计发生业务。

• 日期
• 摘要
• 借方账户
  输入相对应的账户科目
• 贷方账户
  输入相对应的账户科目
• 金额

对所有的会计发生业务执行同样的操作。

导入银行对账单

为了加快这些操作的进程，您可以导入银行对账单的数据并将其链接到数字收据。可以使用报表菜单→导入到账套命令。

报告和预算的比较

在输入会计发生业务后，程序将自动更新账户余额，您可以立即将其与预算余额进行比较。可随时查看并比较过去，现在和未来的会计数据。

Definition of IFRS for SME

They are a set of accounting standards adopted globally for the financial statements of small to medium-sized companies with the goal of ensuring transparency, reliability, and comparability of the companies’ financial information. 

They were issued by the International Accounting Standards Board (IASB), an independent organization based in London, composed of a group of experts with the function of defining accounting principles, preparing, reviewing, or using financial statements, and in accounting training.

When the IASB releases a new standard, there must be approval from the European Union, in the specific approval process, the responsibility lies with the European Commission with other consumptive entities.

IFRS Purposes

The main purpose is to create a common accounting framework for most companies operating within the European Community, offering the advantage of greater simplicity and transparency in relation to the balance sheets and financial information. 

The objectives are characterized in various aspects as follows:

Transparency:

provide stakeholders with clear and detailed information on the company's financial status and performance.

Reliability:

financial reports that correspond to the business reality and are trustworthy.

Uniformity: 

to report financial information that is comparable on a global scale.

Relevance: 

to ensure that important information is provided to potential investors and other stakeholders.

Fundamental Principles IFRS SME

The characteristics of IFRS standards are based on principles as explained below:

Full Disclosure

All relevant information must be fully disclosed.

Substance over Form Principle

Transactions must be accounted for and presented based on their economic substance and reality, not just their legal form.

Principle of Prudence

Uncertainties and risks must be duly considered.

Fair Value Measurement

Numerous balance sheet items must be measured at their fair value, rather than at their historical cost.

Qualitative characteristics of financial information 

Understandability 

The presentation of financial statement information should be understandable in terms of the company’s commercial and economic activities. This principle does not allow for the omission of important information as it would become difficult to understand for some users. 

Comparability 

Information about an entity is useful if it can be compared with similar information from other entities. This characteristic allows stakeholders to identify and understand similarities and differences in business accounting realities. 

Verifiability 

Verifiability helps ensure a faithful representation of the company’s accounting and financial information. Quantified accounting information does not necessarily have to be an exact estimate to be verifiable. 

Timeliness 

Timeliness means having information available in time to make decisions. In this sense, the older the information, the less useful it is. There are exceptions, it is emphasized that for some information it can also be less timely since there is an evaluation over a longer period of time to study and identify trends.

References:

• Financial reporting - European Commission (europa.eu)
• IFRS - International Accounting Standards Board
• Accounting Principles and Objectives

Introduction

According to Article 3.17 of the document "Exposure Draft IFRS for SMEs® Accounting Standard - Third edition of the IFRS for SMEs Accounting Standard - September 2022", it must include all of the following documents in order to have a complete set of financial statements:

• Financial statement.
• Income Statement.
• Statement of changes in equity.
• Cash flow.
• Notes.

References

• Exposure Draft: Third edition of the IFRS for SMEs Accounting Standard.pdf

Statement of financial position

It is a document that represents the balance sheet and financial situation of a company. The balance sheet is separated into current and non-current assets, and consists of assets, equity, liabilities.

Current assets comprise resources that are expected to be liquidated or used as part of usual business operations within one year from the date of the balance sheet. The distinction is particularly useful for investors who distinguish between net working capital and capital used for long-term operations in an operating cycle.
There is also another presentation, it is based on the degree of liquidity, but is suitable for banks and financial institutions that do not provide goods or services within an identifiable operating period.

Non-current assets are corporate resources that are expected to remain in use for an extended period beyond twelve months after the balance sheet date.

Short-term (current) liabilities are those due within the usual operating cycle or within twelve months after the balance sheet date. Trade payables must always be classified as short-term liabilities even if their settlement occurs beyond the normal operating cycle or more than twelve months after the balance sheet date.

Long-term (non-current) liabilities are those due beyond the normal operating cycle or more than twelve months after the balance sheet date.

Income statement

The income statement is the representation of the profit and loss account and is classified according to the by nature of expense method. 

The classification by nature is one of the options available from the IFRS for SMEs, and since it is the simplest and most flexible for different business realities, it was decided to implement this approach.

The concept is that costs are aggregated according to their nature, such as depreciation, purchases of materials, transportation costs, etc. 
There is also the classification by cost destination, where costs are distinguished between cost of goods sold and other costs, which provides more meaningful information but requires a considerable degree of discretion on the part of the financial statement preparer.

Statement of changes in equity

The statement of changes in the equity of a company between two financial years reflects the variations in the net equity due to the increase or decrease of its net assets for the period or the wealth generated, based on the specific valuation criteria implemented and indicated in the financial statements.

Cash flow

The IFRS for SMEs stipulates that entities must categorize their transactions into three distinct activities: 

1. Operating. 
2. Investing.
3. Financing. 

It further permits entities to present their operating cash flows using either the direct or indirect method. Ultimately, the framework’s goal is to furnish decision-useful information to users, aiding them in making informed economic choices.

Notes

The notes to the financial statements represent a fundamental part of financial reporting under IFRS for SMEs. They provide additional and detailed information that integrates and explains the data presented in the main financial statements.

Furthermore, they play a crucial role in ensuring the transparency and completeness of financial reporting, allowing users of the financial statements to fully understand the company's financial position, performance, and cash flows.

In conclusion, the notes to the financial statements are therefore an essential tool for improving the transparency and comparability of financial reporting at an international level.

Introduction

On this page, there is a brief explanation of the templates created with the Banana accounting software and how to use them to print the income statement and balance sheet report according to IFRS standards for SMEs. 

At the bottom of the page are links to download the templates.

Template IFRS SME

The template file is set up with the IFRS SME chart of accounts in which the Statement of financial position, Income statement and Statement of changes in equity are present.

This file refers to the document "Reclassification IFRS SME" to print the report according to the IFRS SME setting, with the use of the financial statements embellished by groups.

For more information on financial statement enhanced balance sheet with groups:

• Video of how-to do enhanced balance sheet with groups.
• Documentation about enhanced balance sheet with groups.
• Documentation about reclassification of financial statement and Income statement.

Reclassification IFRS SME

The document contains the basic settings to print the page layout (document title, company master data), amounts, totals, subtotals of the Statement of Financial Position and Income Statement accounts.

The accounts will be printed even if the amount is zero. If you want to change the setting of this printout or the style you can do so within this file.

Report creation with Statement of financial position and Income statement

To create a report with the Statement of Financial Position and Income Statement documents, follow the next steps:

• Open the template file and record all case-specific accounting transactions.
• Click on Reports -> Enhaced balance sheet with groups
• Enter the important data relating to the reference company (e.g. document name, company master data) in the Page-Header and Footer section.
• You can make other settings by reading the details on Banana's site on the enhanced balance sheet.
• Click OK.

At the end of the process a new file will be opened with the Statement of Financial Position and Income Statement inside.

Download IFRS SME per Banana

We make the models available without any liability, as stipulated in our Terms and Conditions of Use.

• Download the Template IFRS SME for Banana
• Download the Reclassification IFRS SME for Banana

Introduction

On this page, there is a full explanation of how to use the file, what to find in it and its logic.

In addition, there are illustrations and sample figures to help explain how to use the Excel file. The amounts shown in these images are purely for illustrative purposes and do not necessarily reflect actual or significant values.

Documentary reference

For the creation of the accounting structure within the Excel file, the indications of the documentation related to the IFRS standards for SMEs were followed.

Specifically, the documentation is:

• Accounting principles, notes and other: "Exposure Draft IFRS for SMEs Accounting Standard" of September 2022".
• The presentation of the accounts and the explanatory notes: "IFRS Taxonomy Illustrated IFRS Accounting Taxonomy 2023".

Description structure file

The Excel template is divided into ten main parts:

1. General information.
2. Financial Statement.
3. Income Statement.
4. Financial Statement detailed.
5. Income Statement detailed.
6. Statement of changes in equity.
7. Cash flow indirect.
8. Notes of financial statements.
9. Notes of income statement.
10. Notes of cash flow statement.

In order to have a complete set of IFRS financial statements for SMEs, it is mandatory to complete the sheets on General information, Financial statement and Notes of financial statements, Income statement and Notes of income statement, Statement of changes in equity and Cash flow indirect and Notes of cash flow statement.

The Financial Statement detailed and Income Statement detailed sheets, are an alternative to the compilation procedure specified above, as they integrate the entire aspect of the Financial Statement and Income Statement, with all accounts detailed by the notes, having a direct view of the composition and structure of an account with the notes. 

Organitation of the file

File content

The file contains seven fields:

1. Main field.
2. Main account.
3. Sub-category of the main account.
4. Code.
5. Formula.
6. Note.
7. Account amount.

In the main field, you specify the name of the main account, the document reference and generic company information.

The main account is the name of the main account.

The sub-category of the main account can only be displayed if the Statement Financial detailed and Statement Income detailed sheet is used. It is an account taken from the notes and serves to detail the structure of an account, as required in the IFRS notes for SME.

The code is used for Banana's accounting model and serves to identify the account.

The formula is applied for account totals and subtotals.

The note is account-specific and is entered for some accounts as per the IFRS documentation for EMS.

The account amount is a number to two decimal places without currency indication.

Some fields are not editable as they are an essential part of the file structure. The only part to be changed are the amounts to be entered for the various accounts and the descriptions in the note sheet.

The legend below summarises what the fields correspond to and which are and are not editable.

Figure of Excel in the sheet Legend

In the General information sheet, the essential information required by IFRS for SME is entered. 

The essential information is useful to understand the biographical data of the company, the relevant accounting period, the currency used, the main activities and the content of this file, which is the complete structure of the financial statement.

Certain information such as company name, company name, domicile and accounting period is reported on all sheets specifically for the Identifying information of company.

General information

As shown in the image, the information entered on this sheet is carried over to all sheets, so that the company can be identified on each IFRS document, such as: the full name of the company, the address and registered office, and the beginning and end accounting year to be taken into account for accounting purposes.

Statement of financial position

The Financial Statement contains all account items relating to the current and non-current positions of the business for the years 2023 and 2024. 

In this part you are required to enter the budget amounts in the specific accounts. Totals and subtotals are calculated automatically by the formulas.

It should also be noted that for some accounts it is mandatory to complete the Notes. This is done by entering the amounts and other descriptive notes in the ‘Notes of Finacial Statement’ sheet. 
If an account has notes, its amount for the last year refers to the corresponding cell of the account total put in the notes, so it is necessary to fill in the amounts in the notes first.

For the notes, there is also the possibility of consulting the documentation indicated in the ‘Reference documentation’ field, specifying the page and section where the information on the notes can be found.

Finally, there is a final check part to see if the total assets and liabilities are equal.

Modalities of use 
 

In the picture shown, a part of the Statement of Financial Position is selected as an illustrative example to guide the user. There are three highlighted parts in the image:

• Notes.
• The formulas.
• The data to be filled in.

Each part has its own specific function and in some cases the data are directly linked to each other. 

Specifically, if an account has notes, it means that in the ending balance (31.12.xx) there will be the total of the amount calculated in the ‘Notes of financial statement’ sheet. This implies that in order to change that amount, one must fill in the account data on the "Notes of financial statement" sheet.

In this sheet one must therefore:

1. Verify that the account is not linked to notes and enter the amount in the account.
2. If there are notes, then only the ‘Notes of financial statement’ part of the sheet must be filled in.

The formulas integrated in this sheet will make the totals and subtotals of the accounts in the Statement of financial position.

Income Statement

The income statement is presented according to the classification ‘by nature of expense’.

This classification is an aggregation of costs according to their nature (e.g. depreciation, purchase of materials, transport costs, salaries, advertising costs, etc.) and are not allocated according to their purpose within the company. 

The implementation of this classification was decided upon because it is simple and widely applicable for SMEs. The other classification was according to costs by function, where a distinction was made between costs of sales versus other costs (e.g. distribution costs or administrative costs) and this representation requires a considerable degree of discretion on the part of the end user.

As previously done for the Financial Statement, there are the amounts to be entered while the totals are already calculated by means of the formulas applied in the sheets.
In addition, a further breakdown has been made for EBIT (earnings before interest and tax) and EBT (earnings before interest).

Modalities of use 

This figure highlights the important parts of the income statement.

Looking at the accounts, there are indications of the signs (+/-) to be used in the various circumstances, which implies that for accounts that have both positive and negative signs, there is an assessment of the positive or negative impact of that amount on the result of the income statement.

As previously seen in the ‘Statement of financial position’, there are also notes to be entered in the relevant sheet ‘Notes of income statement’ in order to be able to correctly define the amount, as the latter depends on the total in the notes.

In summary, what you need to do on this sheet are the following steps:

1. Evaluate the circumstances of the account with both positive and negative sign and understand whether you are in a situation where it has a positive or negative impact on the result.
2. Verify that the account is not linked to notes and enter the corresponding amount with the correct sign.
3. If the account is correspondent with the notes, then only the ‘Notes of income statement’ sheet must be completed.

Statement Financial detailed

This document differs from the Statement of financial position in that there is more detail on the accounts. The official presentation of the accounts can be found in the ‘Statement of financial position’ sheet in terms of how the accounts are summarised; in this sheet, however, we have more detail, with the aim of avoiding filling in the notes directly in the specific sheet. The use of this sheet excludes the use of the ‘Statement of financial position’ sheet because they refer to the same notes.

The main difference is that not only the main accounts required as a presentation by IFRS for EMS are shown, but they are detailed in sub-categories of accounts that are the same as those found in the notes, so that using this document one can avoid filling in the notes, using only the sub-categories of accounts, except in some cases where the account requires descriptive textual type details, without using calculation formulas or amounts. For this reason, not all parts of notes are integrated, as some accounts require a textual type description.

To distinguish the main accounts from the sub-categories of accounts, the main categories are coloured dark, while the light categories are the accounts related to the notes.  

If there are no subcategories of accounts (coloured light), then it is sufficient to go to the specific Notes of Statement or financial position sheet.

Modalities of use

In this image, you can see four essential parts of the document:

1. Main accounts.
2. Subcategories of the main accounts.
3. Notes.
4. The amounts to be entered.
5. The formulas.

This part, there is more detail only if an account has notes, otherwise it is the same as the Statement of Financial Position. What requires attention is the verification of an account if it is an account with notes and has no sub-categories of accounts, if you find yourself in this situation then it means that the account requires an additional textual description to define some peculiarities in the ‘Notes of financial statement’ sheet.

On the other hand, for accounts that have notes but also account sub-categories, only the amounts of the sub-categories of the specific account need to be filled in. In this way, having filled in all the amounts of the sub-categories of the account, the formulas applied to the sub-categories will calculate the subtotals and the total of the main account.

So to summarise, the procedure for filling in this sheet is:

1. I enter the amounts in the main accounts if there are no notes to refer to.
2. If the main account has notes, I check that it has sub-accounts, if it does not, then I go to the ‘Notes of financial statement’ sheet and fill in the text description.
3. If, on the other hand, the main account has notes and has the subcategories of accounts, then I only fill in the amounts of the subcategories.

In this example image in the Equity part, a case is illustrated where an account has notes but no account subcategories, which requires a textual description in the ‘Notes of financial statement’ sheet, and a normal case where there are notes with account subcategories.

Income statement detailed

Income statement detail is based on the same logic as the Statement of financial detailed, with the aim of providing a single document for its function, detailed by the accounts of the notes, without having to fill in the Notes of income statement.

There are the main accounts and when there are notes, they are detailed by the sub-categories of accounts that are part of them.

Modalities of use

As illustrated in the figure above, there are four equal parts to the ‘Statement of financial detailed’ sheet with the same logic.

The only difference is that there are no descriptive notes, so all accounts with notes are already with their sub-categories without requiring additional compilation on the ‘Notes of income statement’ sheet.

Therefore, to summarise, it is essential to follow these steps:

1. Enter the amounts of the main accounts if they have no notes.
2. If the main account has notes, enter the amounts only in the subcategories of the account.

The Statement of Changes in Equity 

The Statement of Changes in Equity reflects changes in equity.

This part provides insight and transparency into decisions and their effect on the value of equity. It is also a useful tool for investors and other stakeholders to understand how the company has generated and utilised equity capital.

Modalities of use

In the sheet ‘Statement of changes equity’ as shown in the image, there is one part to pay attention to.

The first is the evaluation of the change in the account item, whether it increases or decreases, and then according to the sign (+/-) the amount must be written with the correct sign.

Unlike other documents, this one does not require notes.

So the process of completing the document is:

• Evaluate the account change and follow the indications on the sheet on the sign to be taken in the various circumstances (increase or decrease in the account).
• Enter the amount with the correct sign.

Cash flow indirect

This document draws up the entity in four parts:

1.    Cash flow from operating activities;
2.    Cash flow from investing activities;
3.    Cash flow from financing activities;
4.    Net cash flow.

The document is independent of the other sheets, so you have to do your own calculations to deduct the various amounts to be included in the cash flow items.

The accounts are taken from the IFRS for SME taxonomy, first there are the profit or loss adjustments and then the operating activities are calculated.

Investing activities are characterised by the purchase or sale of fixed assets such as equipment, real estate, joint venture participations and others.

Cash flows from financing activities are related to the company's sources of financing, such as leasing, share issues, debt repayments or financing income. There is also the payment of dividends to shareholders.

In the last part of cash flow there are some clarifications to be made. The net change in cash is assessed in two steps, the first is calculated before the effect of the exchange rate change and the second after this change. In addition, as a form of control, the change in liquidity is also calculated, showing the changes in the period of activity, by calculating the difference between the initial and final liquidity balance.

Modalities of use

As shown in the figure of the cash flow for investing activities, three main components can be identified:

1. The main accounts show the sign depending on the situation.
2. For some accounts, the notes of cash flow statement are required.
3. Entering the amounts requires attention with respect to the sign.

In the cash flow statement, reasoning on the implications of the balance sheet and profit and loss accounts is required in order to conclude which amount to enter in the specific item of the cash flow statement, so the conclusion depending on which cash flow statement has been analysed, could be an increase or decrease of an asset, a payment for property purchase, payment of dividends to shareholders,...

There is no sheet for this purpose, the user must reason with the amounts available, entered in the balance sheet and profit and loss account, and come to his own conclusions.

Next, having an amount, one must distinguish the situation as indicated in the sheet, in order to enter the amount with the correct sign.

Finally, in the event that it is required, fill in the notes of cash flow statement with the specific amounts in the case.

Notes

The notes are divided by the three IFRS documents:

1. Notes to the Financial Statement.
2. Notes of the Income Statement.
3. Notes to the Cash Flow Statement.

As mentioned in the introductory section, the notes serve to supplement the information taken from the financial documents.

The note sheet contains four essential parts: the note code, reference account, amount and notes (text).

The note code is the reference for each part of the documents that serves to understand in which account the notes are to be completed.

The account represents the account taken from the document (Financial Statement, Income Statement, Cash Flow) to be detailed in the notes.

The amount is singular for the detailed account and is not always required because in some cases only a textual description is needed.

Notes as text are necessary if there are cases where only a description or more detailed customisation is required to explain an account.

Modalities of use

Case for the Financial Statement

Figure of Excel in the sheet Notes of financial statement

In this image, four main components can be seen, the account reference code, the account, the detail grouping the sub-categories of accounts, the amounts to be entered with any textual notes.

The starting point for completing this sheet is then the financial statement, where we list which accounts need more detail, and then move on to complete the information in the notes sheet.

The data entry part concerns the amount of the detail account and any descriptive text.

The account totals and subtotals are calculated from the formulas, the account total is shown on the main sheet of the financial statement, so it is essential that if an account needs notes, it is only on the notes sheet.

Case for the Income Statement

 Figure of Excel in the sheet Notes of income statement

As seen above, the structure does not change for the Income statement notes. The main parts are always the same, as also for the cash flow notes.

To summarise therefore in this process one must:

1. Depending on which sheet you are compiling, you must check that the analysed account of the financial statement, income statement or cash flow note is there.
2. All the necessary data and information must be filled in.
3. If there is a sub-account in the notes that is not needed or not used, you can simply leave it blank or enter a zero amount. 

Objectives of the file

The process of creating the IFRS structure for SMEs took the official documentation and reconstructed a structure in the Excel template, with the aim of allowing the user to follow the IFRS reporting logic by entering the main information in the parts of the file.

The basic characteristics of such a file is the completeness of the document by having all the main parts required for IFRS, the usefulness of preferring the most widely used models that are more suitable for several companies, and excluding other more specialised models only in certain contexts.

The end result is to have a financial and economic view of the company's situation in the specific period, in compliance with the IFRS standards for SMEs. 

In addition, the aim of IFRS for SMEs is to improve the comparability of financial data between different companies, to facilitate the analysis and interpretation of financial results by stakeholders outside the company, and to promote the adoption of IFRS for SMEs by providing a practical and accessible tool.
 

We make the model available without liability as per our Terms and Conditions of Use.

• ⬇️ Download the Excel IFRS-SME model

What is exactly the financial statement analysis?

Financial statement analysis is an accounting tool that provides an assessment of a company's economic, financial and asset condition. It is based on the financial statements and reports the data. It contains the profits and losses of a company and therefore serves to derive the general performance of the company.

Why is this activity very important for your SME ?

Until recently there were few SMEs that often used a financial statement analysis as larger companies could use it.

Today, times have changed. Reading the numbers well can make a difference within the strategy and management of an enterprise. Understanding which products it is worth investing in and which jobs can be neglected determines the difference between the growth or decline of a company.

This activity can be a source of interest for various subjects, external or internal to the company. Entities or external individuals can analyse their solvency profile (current or potential lenders), capacity to provide an adequate return on capital (for those who want to buy shares for example) or even just obtain information on the company's situation with respect to competition in the sector.

Through the comparative balance sheet analysis of the various elements available, it is possible to arrive at the following formulation of a "judgement" on the health of the company in all its dimensions:

• Economic
• Asset
• Financial

How it works

The financial statement analysis is based on two fundamental documents for a company:

• The Balance sheet
• The Profit and loss statement

In order to perform a correct analysis, it is always necessary to start from the reclassification of the accounts, which includes 3 phases in particular.

1. Group the account items into groups
2. Order such groups
3. Bringing out intermediate results

The reclassification allows for a slightly cleaner first view of the company's situation and is already useful information can be obtained from it.

Analysis by Indexes

Once the intermediate results have been obtained, it is possible to proceed with the calculation of the indices useful for the analysis. The financial statements analysis by means of indexes is a very powerful tool that allows you to use indicators capable of providing a very concise assessment of one's own situation.

How should the data be interpreted?

Better results in terms of interpretation and evaluation are therefore achieved by analysing a series of balance sheets and studying the trend over time of the significant balance sheet ratios, so as to understand in which management is moving the company (dynamic financial statements analysis).

How do I evaluate them?

• Temporal evolution
• Comparison with average values of the sector
• Comparison with "normal" values i.e. with the benchmark
• Comparison with objectives

Response to results

This is the last activity of the analysis cycle, where the "relay" passes into the hands of those who deal with the Management of the Company, with data that speak clearly, the Manager will have to plan how to proceed using the right Project Management techniques.

The report contain errors?

If you notice incorrect data within the report or find that for some reason the calculated amounts do not match, please follow the steps below:

• Check that the data in your accounts are correct.
• Check that you have set up the groups correctly in the settings dialog.

If the errors persist, contact us via our feedback form and send us an example accounting file (*.ac2), even with little data, but allowing us to reproduce the possible problem and correct it.

Multi-language

The extension is available in the following languages:

• English
• Italian
• French (translation currently not complete)
• German (translation currently not complete)

And will adapt according to the language in which the application is set up. For all other languages, the standard version in English will be displayed.

Save your analysis 

You can save the report in the following formats:

• Html
• Pdf
• Excel
• Latex

Dialog is accesible:

• By going to the Extensions menu→Cash Flow Statements and financial Ratios →Financial Reports.
• By going to the Extensions menu→Cash Flow Statements and financial Ratios →Settings.

Set up the groups

The first and most important step is to enter the groups or accounts number you are using in your account table.
Once you enter the groups the report and calculations are all done automatically, except for some specific transactions for the Cash Flow Statement.

• Groups must be entered manually
• Groups must be separated by a semi-colon ';'
• Both groups and accounts can be entered
• It is important to make sure that you include elements that exist in your chart of accounts, if are entered groups or accounts that do not exist in your chart of accounts, a message will be displayed on the row of the grouping concerned, returning those elements for which a match was not found in the chart of accounts. Once corrected, you only need to run the dialogue again and the message will disappear.
• By default, the groups within the dialogue refer to the Swiss SME chart of accounts, and it is possible to return to the base scenario by clicking the Restore Defaults button. Beware, however, that in this way the customisations made will be lost, and will be replaced with the default values. 

All the necessary elements must be inserted within the different groupings defined in the dialogue (Liquidity, Fixed Asset,Owned base capital,...).

Assets

They show the total employment of a company, so the investments to which the company has allocated
the means found in carrying out its activity.

•  Liquidity: Must include groups or accounts that define liquidity in the company, such as cash or bank
• Credits: Must include groups or accounts within which are recorded all the operations
  concerning money due to buyers who didn’t paid yet for their purchases
•  Stocks: Must include groups or accounts with all goods for resale in the ordinary course of business.
• Fixed assets: Must include groups or accounts containing fixed assets elements, as:
  •  Buildings
  • Computer equipment
  • Computer software
  • Furniture and fixtures
  • Intangible assets
  • Land
  • Leasehold improvements
  • Machinery
  • Vehicles

Liabilities and Equity

Shows where company's resources come from. In general, the funds at the company's disposal are
classified in a way to distinguish between own funds (which flow into equity) and those from third parties.

• Short-term debt capital: Must include groups or accounts representing the company commitments that must be fulfilled, without any particular cancellation, in the current year.
• Long term debt capital: Must include groups or accounts containing that kind of capital that the company can have at its disposal for several years, on a fixed basis, and that can usually only be withdrawn within a set time limit.
• Own Base capital: Must include groups or accounts those group referring to the company's own capital.
• Reserves and Profits: Must include groups or accounts within which are recorded the amounts to be paid to reserves or designated as profits.

Revenues

Indicates what is produced by the company during a financial year. Whether it is an increase in the value of products or semi-finished products in the course of production or services in progress, revenue from the sale of products or services or the increase in the value of fixed assets thanks to own resources, all these heterogeneous factors add up.

• Sales turnover: Must include groups or accounts within which is recorded what is produced by the company during a financial year. Whether it is an increase in the value of products or semi-finished products in the course of production or services in progress.

Costs

• Costs of Merchandise and services: Must include those groups or accounts in which all costs relating to goods and services consumed during the annual financial year are recorded.
• Personnel Costs: Must include all those accounts referring to a cost due to personnel, such as:
  • Salaries
  • Social charges
  • Severance Pay
  • Pension and similar treatment
  • Other costs
• Different Costs: Must include all other groups or accounts relating to costs during the operating period.
• Interests: Must include groups or accounts containing the costs of financing sources, such as bank interest payable or interest on loans.
• Depreciation and Adjustments: Must include groups or accounts where are registered possible revaluations and write-downs of equity investments, as well as of financial fixed assets and securities included in current assets that are not equity investments.
• Final Result: The group containing the difference between the costs and the revenues at the end of the year.

Average Number of employees

This information is useful for calculating efficiency ratios, enter the average number of employees in the company and find out information such as the average company revenue per employee.

Printing Preferences

To make the Analysis as close as possible to your needs you can set some preferences, and choose about the details of printing and analysis

Printing Details

• Page header: Include the header in the report, the header is composed with the information retrieved from the properties of the file.
• Logo: Choose whether to include your company logo in the report. for information on how to set up a logo visit this Logo set up page.
• Background color of headers: Choose the colors for the table headings
• Text color of headers: Choose the color for the texts in the table headings
• Report Without colors: Check the box for no colours in the report.

Analysis Details

• Number of previous years: Set the number of previous accounts (years) to be included in the analysis, which will be added to the current year and the Budget (if present and included).If you don't know how to set the previous year to a file, go to “File→File and Accounting Properties→Options Tab.
• Number of decimals: Choose how many numbers after the decimal point you want for the digits in the report, if you don't want to have decimals you only need to insert a zero 0.
• Include Budget: If you are using the Budget table for your financial planning, you have the possibility to include it in the analysis.
• Include Budget to date column: Include the columns showing the values of the budget up to that day, compare the values with those of the year-to-date.
• Include Current year projection column: You can include the projection for the current year. The programme uses the values in the budget table to return what could be the values at the end of the year.
• Current Date: Insert the current date. If no date is entered, the date of the day is taken automatically
• Include DuPont Analysis: Choose whether to include the Dupont Analysis
• Include Control Sums: Choose whether to include the table with the control sums, useful to inform in case of errors on the totals (assets/liabilities, operating result).
• Show the formulas column: Choose whether to show the column with the calculation formulas.
• Show the acronym column: Decide whether or not to show the acronym column, which is useful for identifying the elements used for formulas.

The columns of acronyms and formulas are complementary, that's beacuse the acronym column is useful to uderstand how the formulas are composed. if you dont need these columns, just uncheck the checkbox.

Set the benchmarks

Benchmarking is a method of assessing an organisation's competences based on comparison with the "best
in class", whatever sector it belongs to. So the Benchmark is a key performance indicator on the basis of
which a company assesses its performance with regarding to products, services and business processes.

You can customise these values depending on your company:

• Sector  
• Size
• Targets

These values are only representative, which means that the figures you enter are not used in the analysis but are shown as they are. In the report, they are displayed in the Benchmark column, in the indexes tables, so that you can quickly assess the situation.

It's also possible to call the dialog from the opened report and change the parameters. The values of the
analysis will be updated automatically. 

Cash Flow is an analytical tool that helps to visualise the positive and negative changes in liquidity as a result of management, with reference to a given period of time: it is in fact the reconstruction of monetary flows, then the difference between all the monetary income and expenditure of a company.

Cash Flow analysis is not subject to accounting rules and many investors use the data to assess the strength of the company.

Essentially, if the Cash Flow is positive, it shows the financial availability for the company within the reporting period, whereas if the cash flow is negative, it means that more resources have been absorbed than have been received.

Special Cash Flow transactions

The first step to obtain the Cash flow Statement i its to setup the account groups in the settings dialog, Most value needed for preparing the Cash Flow Statement can be calculated based on the changes of the standard account classification. Identifying Disinvestments, Revaluations, transactions and other specific movements effecting the cash flow, would require a restructuring of the account plan. We have therefore opted  to identify these values, by adding a special code to the description of a transaction.

It is important that these transactions are made using the recommended account type or group, because the program searches for cashflow amounts in certain groups, so if an entry is made using another account type, there could be an error as the amount may not be found.

If we talk about entering a fixed asset account, the account must belong to one of the groups entered in the fixed assets section of the dialogue. For example, if I disinvest by selling a vehicle and I use the standard chart of accounts for SMEs, I can use the account Vehicles '1530', which is part of the group 150, which in the dialogue is entered under the section 'Tangible Assets' in the fixed assets.

• Disinvestments (#disinvest)
  • A disinvestment simply represents the sale of a fixed asset such as a vehicle or machinery. When recording a disinvestment.
    • Debit Column: Insert the account where you will collect the money from the sale, such as the post or the bank.
    • Credit Column: Insert a fixed asset account that relates to the item sold.
  • Knowing the amount of disinvestments, the program is able to calculate in detail the real amount of investments that have been made during the year. For an SME, the number of disinvestments during the accounting period usually remains quite small, whereas investment activities are much more frequent operations, which is why it is very important to find the real amount net of all other movements.
• Revaluations of fixed assets (#revaluations)
  • Revaluation of a fixed asset is the accounting process of increasing  the carrying value of a company's fixed asset or group of fixed assets to account for any major changes in their fair market value.
    • Debit Column: Enter the account of the fixed asset item you are revaluing to increase its value.
    • Credit Colum: Enter an income account, if you don't have a particular one you can enter it as extraordinary income.
• Devaluations of fixed assets (#devaluations)
  • It works in the same way as a revaluation, but instead of increasing the value of the fixed asset it decreases it, which means that the accounting entry is also reversed, i.e. the income becomes a cost.
    • Debit Column: Enter a cost account, if you don't have a particular one you can enter it as extraordinary cost.
    • Credit Colum: Enter the account of the fixed asset item you are revaluing to increase its value.
• Dividends (#dividends)
  • Dividends are fees paid to shareholders and usually depend on the profit made. The payment of a dividend must be recorded in a specific liability account, and should appear under short-term liabilities.
    • Debit Column: Enter the reported balance sheet Profit / Loss carried forward account.
    • Credit Colum: Enter the specific account for dividends.

Cashflow Statement

Cash flow is divided into three main components:

• Operating cash flow which originates from the core business operations of a company.
• Cash flow for the company, which is the cash flow available to all investors in the company.
• Cash flow available to shareholders, which only considers the cash flows that are due to the shareholders, resulting from the net of all payments made and received, including from debt holders.

Adding up all the totals you find the amount that corresponds to the change in liquidity for the period, which in turn when added to the value of the liquidity at the opening of the period should give you the current liquidity balance.

If the results do not match, an error message is displayed.

Acronym column

In the acronym column of the cashflow, the reference to the account taken into account in the calculation is entered, or in the case of special entries, the prefix of the entry, so that it is easy to see which item of the balance sheet or income statement a certain movement relates to.

Cash Flow verification

This table shows any differences between the change in cash flow calculated in the cashflow and the actual cash flow in the accounts, which in an optimal situation should match. If there is a difference in one of the years of analysis the amount in question is printed in red on a line below.

Usually, when an error occurs, the first thing to do is to check whether the amounts in the balance sheet and profit and loss statement are correct or whether there are differences between the assets and liabilities, for checking them, control sums are very useful because they immediately show whether there is a difference.

if you realise there is some error but you dont know exactly where, you can check the amounts by comparing the ones in the report with those in the chart of accounts. 

The differences are generally due to an error when entering groups in the settings dialog, which can occur in two ways:

• One or more groups were not included
• One or more groups were entered under the wrong heading

In case the balance and profit and loss amounts are correct but the cashflow displays an error, is probably due to the fact that a group has been inserted in the wrong place.

Retained Earnings Statement

This table shows the movements made with the annual profit achieved. Starting from the reported annual profit it adds the profit for the period and adjusts the value by taking into account the payment of dividends and the creation or dissolution of reserves. The last two rows show the total undistributed profit, and the undistributed profit realised in the current year.

This information is somewhat supportive of Cash Flow but since earnings management does not directly affect cash, it is presented in a separate statement.

Record Transactions

It is useful to first record the transfer of the profit for the year from the profit and loss account to the profit shown in the balance sheet as shown in the example image.

In order to record the payment/discharge of reserves and the payment of dividends, it is sufficient to use the specific account of one of the above items and to decrease or increase the profit account shown in the balance sheet. The remaining amount (not allocated to reserves or dividends) then increases the retained earnings.

Cash Flow Ratios

In addition to the ratios already present, those ratios are added just below the Cashflow table and in the Charts

• Cashflow margin: Measures the amount of revenue a firm can convert into operating cash flow. When a firm is thriving, operating cash flow should grow alongside revenue. While profit margins measure a firm's pricing power; a declining cash flow margin also measures the health of customer and supplier relationships.
• Asset Efficiency Ratio: This is a basic ratio to show you how well the company uses its assets to generate cash flow. It’s best used to view the historical trend as well as to compare with competitors.
• Cashflow to current Liabilties: This ratio gives you an idea about the company’s debt management practices.It’s also a better indicator of the company’s ability to pay current liabilities than the current ratio or quick ratio
• Cashflow to Liabilities: Measures the amount of operating cash flow a firm generates on each dollar of total liabilities. Businesses that can't produce operating cash flow to pay off all their liabilities cannot continue to operate indefinitely, making this ratio an important indicator of liquidity as well as solvency
• Cashflow to Investments: Measures the amount a company outlays for capital assets for each dollar of cash dollar it generates from those investments.

Why Is Cash Flow Analysis Important?

Performing cash flow calculations in combination with constant monitoring of the company's cash flows is the winning formula for effective treasury management, and is useful for making the best use of available cash.

Thanks to the ability to generate cash flow and the financial solvency of the company, you gain confidence from banks and suppliers, as it symbolises a certain control over your business: the calculation of cash flow is in fact a way to detect the actual availability of the company, giving the possibility to face unexpected events or to plan consistently the future of projects.

For more information on Cashflow Analysis, please refer to the following page.

Generate the Report by going to the Extensions menu→Cash Flow Statements and financial Ratios →Financial Reports.

The Report contains all the analysis data processed by the extension:

• Reclassified balance sheet 
• Reclassified Profit and Loss Statement
• Control Sums table

Reclassified Balance Sheet

The reclassification of accounts allows for the display of a series of values, results and intermediate margins that contain more information than the traditional structure.

• Current Assets:  All the assets of a company that are expected to be sold or used as a result of standard business operations over the next year.
• Fixed Assets:  Items, such as property or equipment, a company plans to use over the long-term to help generate income.
• Total Assets: The sum of current assets and fixed assets.
• Debt Capital: Is the capital that a business raises by taking out a loan. It is a loan made to a company, typically as growth capital, and is normally repaid at some future date.
• Own Capital: It is the capital owned by the company.
• Total Liabilites and equity: The sum of Debt Capital and Own Capital.

Reclassified Profit and Loss Statement

• Added value: The difference between operating costs and operating revenues incurred for resources outside the company, expresses the company's ability to create wealth and then remunerate the various production factors and stakeholders.
• MOL /EBITDA: "Earning Before Interests, Taxes, Depreciation and amortization" is obtained by subtracting from production revenues the costs of production (including internal costs such as personnel costs), without considering provisions and depreciation. As it does not contain economic items without monetary movement, its value assumes very important information for financial investors.
• EBIT :"Earning Before interests and Taxes", helps to understand whether the company is also able to cover the financial charges arising from its financial commitments.

Control Sums

Resumes the totals of the reclassified accounts (Assets, Liabilities and Equity , Annual Result). Checks that the sums calculated in the analysis match the totals in the accounting sheets and that Assets and Labilities and equity match.

• Accounting Total column: Represents the actual total in the accounts.
• Calculated Total column: Represents the total calculated by the program based on the groups entered.
• Difference column: Represents the difference found between the total in the accounts and the calculated total for each year.  The value equal to 0, otherwise will be displayed an error message, which means that there may have been an error in entering the accounts/groups .In this case it is useful to check in the dialogue that you have entered the groups correctly.

Generate the Report by going to the Extensions menu→Cash Flow Statements and financial Ratios →Financial Reports.

The balance sheet ratios are formulas calculated on financial, economic and asset values. These ratios are derived from the income statement and balance sheet data. Balance sheet indices are important analysis tools that provide essential indications for the entrepreneur's activity. 

It is widely used by all professionals who are interested in assessing the soundness of a company for their work.
In fact, banks use the balance sheet indexes to evaluate company loan applications.

the indexes are divided into four main types

• Liquidity ratios:
• Financing ratios
• Profitability ratios
• Efficiency ratios

Liquidity ratios

An important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety through the calculation of metrics.

• Cash ratio: Indicates the extent to which the company is able to repay its debts at the end of the term.
• Quick ratio: Indicates the extent to which the company is able to pay its debts when due.
• Current ratio: Indicates the extent to which the company is able to pay its short-term debts without touching fixed assets.
• Net Current Asset: Indicates the part of the current assets free of short-term commitments, which can therefore be used in the activity.

Financing ratios

They look at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations.

• Degree of Circulating Assets: It allows us to understand whether there is a balance within the company's assets, a judgement can only be made if we have the average data for the same line of business.
• Percentage Fixed Assets: It is complementary to the previous one.
• Debt ratio: Indicates the extent to which the company has had to resort to external financing, the judgement depends very much on the branch of activity.
• Equity ratio: Is complementary to the previous one, equity ratio has the advantage of being less expensive.
• Self-Financing ratio: Indicates the extent to which the company has been able to accumulate undistributed profits. 
• Fixed Asset coverage: The fixed assets must absolutely be financed from equity or possibly from long term capital, otherwise major repayment problems could occur.

Profitability ratios

Are useful to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity over time, using data from a specific point in time. 

• Return on equity (ROE): By comparing the percentage obtained with the rates commonly applied for other investments, it is possible to understand whether the equity invested by the company gives a sufficient return or not.
• Return on investment (ROI): Identifies the return on invested capital. Basically it serves to understand how much the invested capital returns in terms of income.
• Gross Operating Margin (MOL) :Is a value that measures the profitability of a company. In other words, it measures the ability to make profit margins: Indicates the company's return on sales made.
• EBIT margin: Is the ratio of EBIT to turnover of a company. This ratio provides information on its profitability and helps to compare different companies and sectors.
• Profit margin: It represents what percentage of sales has turned into profits.

Efficiency ratios

Express the degree of efficiency of the company's factors of production, those chosen by us give us an indication of the relationship between the number of employees and the various margins of the profit and loss account. Efficiency indicators are related to profitability indicators, as higher productivity generates an improvement in profitability indicators.

• Revenue per Employee: An increase indicates greater efficiency of the company and a lowering of the break even point. Its increase is certainly an indicator of the good health of the company itself.
• Added Value per Employee: Gives evidence of efficiency in terms of cost reduction (e.g. economies of scale). If the revenue per capita index remains stable and the value added per capita index increases, this is evidence of cost efficiency.
• Personnel Cost per Employee: Highlights the trend in average personnel costs.

Within the tables and also visible the calculation formula of each index.

Dupont Analysis

The Dupont model is a technique that can be used to analyse the profitability of a company using
traditional performance management tools. To enable this, the model integrates the elements of the Profit
and Loss Account and Balance Sheet.

Altman index Z-Score

The Z-Score is an index of the discriminating analysis used to determine the probability of bankruptcy of a
company within 2 years using statistical techniques.

It’s possible to access to the charts by going to the Extensions menu→Cash Flow Statements and financial Ratios →Financial Charts.

Charts allow you to read the same information as you can find in the report but in a clearer and more
intuitive way. Once the dialogue is open, you can move between the various elements thanks to a drop-down menu.

Ratios charts 

1. Financing ratios evolution
2. Liquidity ratios evolution
3. Profitability ratios evolution
4. Efficiency ratios evolution
5. Cashflow ratios evolution

These charts represent the evolution of the indexes over time. For each type of index there is a bar chart,
within which there is a section that represents the evolution over time of each index for each year included
in the analysis. 

Reclassified Elements charts

1. Reclassified asset variation
2. Reclassified liabilities and equity variation

These charts show the time evolution of the reclassified assets, and reclassified liabilities, using stacked
chart. It is possible to see how and in what quantity the groups make up the total of assets and liabilities (in
percentage %)

Reclassified profit and loss variation

Shows by using histogram the value of the intermediate totals (EBIT,EBIT-DA,..) of the reclassified profit and loss account ,and their evolution over the time.

Manage your accommodation on Airbnb, Booking.com, Vrbo or the platforms you use with this free template and keep track of your finances easily and efficiently.

The Banana Accounting Plus template is superior to an Excel spreadsheet or a Google Sheet but avoids potential errors and time loss due to formula management. This way, you have a completely free accounting management template specifically designed for hosts.

With Banana Accounting Plus, unlike Excel or Google spreadsheets, there are no limits on the number of rooms, apartments or houses you can manage, and it allows you to easily track income and expenses for each individual rental property and your entire short-term rental business.

With this template, you can record and monitor all your income and expenses quickly and easily, providing you with a clear and detailed snapshot of your finances and how to optimize expenses. The accounting management template on Banana Accounting Plus offers a simple and effective way to organize and analyze all the financial data that is important for hosts.

Here are some of the key features and benefits of the free accounting management template:

• Easy to use: the template is designed to be intuitive and user-friendly, even for those who are not accounting experts. No technical skills or in-depth knowledge of Excel spreadsheets are required to use it. Banana Accounting also has extensive online documentation in multiple languages readily available.
• Startup budget: create, manage and update the budget of your startup to generate detailed and useful reports and forecasts for the success of the business.
• Income tracking: record all income generated from bookings, including payments from platforms, booking fees and reimbursement of cleaning expenses for rooms, apartments or houses, with all the necessary tracking details.
• Expense management: keep track of all expenses associated with your properties, such as utilities, cleaning, maintenance and supplies. Choose the level of detail you prefer for each expense associated with your rental properties. Add, edit, group and customize expenses you want to monitor without limitations.
• Track rental property information: easily track guest names, rented room, apartment or house, check-in and check-out dates, total nights stayed, number of guests per booking, the source of guests' bookings and payment dates from platforms.
• Automatic calculations: the template performs calculations automatically for you, without the potential errors of Excel or Google Sheet formulas, providing a clear overview of your cash flow, profits and expenses for your entire business or for a single room, apartment or house you manage.
• Detailed reports: generate comprehensive and professional financial reports, including profit and expense statements, balance sheets and more. These reports will help you make informed decisions and have detailed control over your finances.
• Manage hosting platform Experiences: easily and quickly manage the Experiences you offer on Airbnb, Vrbo or other similar platform.
• Customizable: the template can be easily customized to fit your specific needs. You can add custom categories, modify, group and personalize all the details you want to monitor according to your preferences.
• Privacy: it's important to note that the data entered into Banana Accounting is not used for commercial purposes. Your information remains confidential, offline and is not repurposed in any way.

This free template for income and expense accounting management for hosts managing their short-term rental properties simplifies the management of your finances, saves you valuable time, and provides you with a clear and comprehensive overview of your income and expenses professionally.

Banana Accounting is a highly versatile and customizable accounting software that can be used for broader accounting purposes beyond managing hosts on Airbnb, Booking.com, Vrbo and other hosting platforms.

Totally free

This template is based on the Cash Manager feature of Banana Accounting Plus, which can be used for free and without limitations with the free subscription plan.

Create and save the file

You can open and save your new file to start either through Banana Accounting Plus Web or by downloading and installing the software on your computer:

• Download and install Banana Accounting Plus.
• Click on File > New.
• Select Cash Manager.
• Search for the Category Business.
• Select the template "Income and expenses management template for Airbnb or similar platforms".
• Click on Create.

If you click on the text "More info...", you will be directed to this specific documentation page for the template. On this page, you can always find the tutorial file including sample records.

Using the command File > File Properties, set your references, the accounting period with opening, closing dates and the base currency. In the Address section, fill in the fields for the entity managing the rental properties. If necessary, change the base currency of the accounting file in the Accounting section.

With the command File > Save As, save the file. It is useful to include the name of your business and the year in the file name. For example, "BusinessName-2023.ac2".

Also, refer to the article on organizing accounting files locally, on a network, and in the cloud.

Banana Accounting Plus Web Access

When you have downloaded and saved your new accounting file to open and use it from the web, you can bookmark the following link to access Banana Accounting Plus Web. However, it is recommended to download and install Banana Accounting Plus on the computers where it is needed, because Banana Accounting Plus Web does not yet have all the features available.

Create the budget

With Banana Accounting Plus, you can easily create a startup budget for your new short-term rental business on Airbnb, Booking.com, Vrbo and other platforms, and forecast all the costs you'll need to deal with. Consult all the relevant documentation on how to create a budget with Banana Accounting for detailed information.

Customize and categorize expenses

If you prefer, you can group similar costs into categories and maintain the detail for each type of expense:

• Properties costs: mortgage payments, repairs and insurance coverage.
• Initial setup expenses: spending on furniture and household utensils.
• Bills: electricity, gas and water expenses.
• Supplies: expenses for items like linens, toiletries and cleaning products.
• Business expenses: costs related to accounting, software and taxes.
• Other costs: payments for cleaners, laundry services and ads.

See how you can easily create accounts groups.

Recording transactions

In the Transactions table, record all transactions in chronological order, including debtor payments and invoice payments, as well as other types of transactions. The recordings can always be sorted and viewed instantly. You can highlight rows, correct any mistakes and copy and paste previously entered transactions.

To expedite data entry, we suggest using the various features of Banana:

• The auto-completion data entry feature automatically retrieves previously entered data.
• The recurring transactions feature (in the Actions menu) allows you to store frequently recurring transactions in a dedicated table.
• You can import data from bank statements, automatically capturing all bank transactions.
• You can link each recording to its corresponding digital document, and with a simple click, you can view the document. Refer to accounting files and digital documents for better document organization.
• Use the sort recordings command to arrange rows in chronological order.
• Use the print/preview command to print or export the journal in PDF format.

Bank transactions import

You can import bank statements, eliminating the need for manual entry.
Additionally, with the Advanced plan, it also allows for easy management of rules to automate accounting according to your specified criteria. This significantly reduces the effort required for accounting management, resulting in unmatched time savings.

Print financial statements or accounting reports

To view and print the financial statements at any time, click on the Report menu > Enhanced financial statements with groups. You can customize them or have an accounting report for a specific period.

Obtain detailed and customizable reports on all expenses and revenues of your business with Airbnb. You can compare them with the budget to always keep track of the performance of your startup.

If you manage multiple rooms, apartments or rental properties, you can keep track of expenses and revenues allocated to each individual property you rent. You can also create room-specific budgets and compare the results with the actual expenses and earnings whenever you want.

Advanced management

If you want, you can manage your Airbnb business in an advanced and optimized way through the rental management view called Manage Rentals. This allows you to keep track of all the necessary information about the reservations you receive. For those who offer Airbnb Experiences, there is the experiences management view, called Manage Experiences, available to track guest bookings related to experiences.

Navigate between the various available views to keep all the relevant data under control.

Questions or specific requests

Do you have any questions or specific requests regarding this template for Airbnb hosts or other short-term rental platforms? Please e-mail us.

Sample records for managing income and expenses for Airbnb hosts or other hosting platforms

Here are the sample accounting records for this template.

Recording an Airbnb or other platform revenue transaction

Record revenue from online platforms such as Airbnb, where you receive booking fees, with the preferred breakdown of the collected amounts and platform commissions. If you want, keep track of the ad from which the guest made the reservation, the check-in and check-out dates, the number of guests for the booking, the booked nights, the room or flat rented and the date of payment from the online platform.

To print the receipt to be given to the guest upon arrival, enter the receipt number in the Doc column and use the designated printer extension. You can also attach the receipt to the corresponding revenue record using the Link column.

Recording an expense for your short-term rental business

Record the expenses you incur for your Airbnb business by indicating the date of the expense, a description of the purchase, the amount incurred, the expense category, and the room or flat associated with your monetary outflow. You can always attach your receipts using the Link column.

This template is useful for comprehensive and efficient accounting management for Airbnb hosts who need a system that supports double-entry bookkeeping and handles multiple currencies. Banana Accounting Plus provides a wide range of features to track the income and expenses of your short-term rental business.

Banana Accounting Plus is an advanced accounting software that is superior to Excel, yet it is simpler and more cutting-edge, catering to the common needs of Airbnb hosts. The accounting template has been specifically designed to offer a comprehensive and customizable solution for the financial management of your Airbnb properties. It allows you to track expenses, record income, monitor cash flow and much more.

The key features of this accounting template for Airbnb include:

• Asset Management: this template encompasses all the features of the free template for Airbnb, Booking.com, Vrbo and similar hosting platforms and provides an advanced solution for those with greater needs. It allows you to manage unlimited assets compared to the free template.
• Double-Entry Bookkeeping: the template adheres to the fundamental accounting principle of double-entry bookkeeping, ensuring the accuracy and correctness of your financial records.
• Multi-Currency Management: if you manage Airbnb properties using different currencies, Banana Accounting enables you to record and track income and expenses in different currencies, simplifying international financial management.
• Advanced Reporting: the software offers the ability to generate detailed reports on your finances, including profit and loss statements, account statements, balance sheets and detailed budgets. These reports provide you with a comprehensive overview of the performance of your Airbnb properties.
• User-Friendly: the software is designed to be user-friendly, even for those new to double-entry bookkeeping or without extensive accounting experience. The accounting template is intuitive, and the extensive available online documentation guides you step-by-step in managing your finances.

Banana Accounting Plus is intuitive, easy to use and simplifies your accounting management for Airbnb.

Example of a multi-currency income transaction for hosts

Here's how to use the multi-currency feature of Banana Accounting Plus:

1. Set the desired currency exchange rate through the Exchange Rates table.
2. Perform the accounting entry by entering date, description, bank of the currency received, income account, amount in the currency received and specify the currency received. Banana Accounting Plus will automatically calculate the amount in the main currency used for managing your Airbnb accounting.

Image of the Exchange Rates table

Image of the Transactions table where to record the income received from Airbnb or similar platform.

[This page is currently being updated]

INPAS key accounting documents

This page is dedicated to the chart of accounts template that conforms to the INPAS standard. The INPAS standard is designed to improve the transparency and accuracy of nonprofit associations' financial statements. It is also possible to download a complete Excel template that facilitates the compilation of all the documents required to comply with the standard.

The chart of accounts has been designed and interpreted based on the INPAS drafts and may require adjustments once the final guidance is published in 2025.

The compliance of the accounting with the INPAS standard always depends on the accountant and the auditor working on the accounts.

Updates may be possible following the final publication of INPAS in 2025.

Statement of Financial Position

The balance sheet is an essential document that provides a detailed view of your organization's financial health, clearly showing assets, liabilities and net worth. Because of the flexibility of the INPAS standard, you can present the financial statements either vertically or horizontally, tailoring them to the specific needs of your nonprofit.

This document can be generated easily using Banana Accounting+ template.

Statement of Income and Expenses

This document shows your organization's income and expenses during a period. Proper management of the income statement is crucial to demonstrate how resources were used to achieve missionary goals.

This document can be generated easily using Banana Accounting+ template.

Statement of Changes in Net Assets

This document is critical to understanding the changes that have occurred in net assets during the fiscal year. The INPAS standard provides a sequence of elements that transparently reflects the changes, making clear the impact of financial activities on the organization's assets.

Statement of Cash Flows

The cash flow statement, which shows cash flows, is essential for monitoring your organization's liquidity and ability to fund its activities. With our INPAS template, you can present this information in a clear and accessible way, improving transparency to donors and board members.

Explanatory notes

Explanatory notes offer crucial details to fully understand the numbers presented in other accounting documents. They provide a clear description of adopted accounting policies and significant changes, contributing to a deeper and more accurate analysis of the institution's financial position.

Excel template to download

To facilitate the accounting management of associations, a complete Excel template can be downloaded to provide all the necessary documents according to the INPAS standard. In fact, this versatile and easy-to-use tool also allows you to create the Statement of Changes in Net Assets, Statement of Cash flows and Explanatory notes, completing the documentation with the Balance Sheet and Statement of Income and Expenses you can easily obtaine through Banana Accounting+.

Download the INPAS Excel Template

Statement of Financial Position

This document can be generated easily using Banana Accounting+ template. Here is what the statement of financial position must contain.

Current and non-current assets

Assets should be distinguished into current and non-current. Current assets are those that are expected to be converted to cash or used within one year. They include accounts such as cash and cash equivalents, short-term receivables, and inventories. Non-current assets, on the other hand, are those that are expected to be held for periods longer than one year and may include tangible assets, intangible assets, and long-term investments.

Current and non-current liabilities

Liabilities must also be classified into current and noncurrent. Current liabilities are payables and obligations that are expected to be settled within one year, such as accounts payable, accrued expenses, and other short-term liabilities. Non-current liabilities represent long-term commitments that the organization does not expect to settle within the next year, such as long-term debts and mortgages.

Shareholders' Net Assets

Net Assets represents the difference between the organization's total assets and total liabilities. In financial statements according to the INPAS standard, net assets should be divided into three main categories:

• Unrestricted funds: resources available for general use and not subject to specific restrictions. These funds may be used at the discretion of the organization to fund any activity or operational need.
• Restricted funds:
  • Temporarily restricted funds: resources subject to restrictions imposed by donors or temporary conditions. These funds may be used only for specific purposes and for a specified period, after which, if conditions are met, they may be reclassified as unrestricted funds.
  • Permanently restricted funds: resources that must be kept intact indefinitely, often to ensure a continuous source of income for the organization. These funds are typically associated with permanently restricted donations.

Statement of Income and Expenses

This document can be generated easily using Banana Accounting+ template. Here is what the statement of activities must contain.

Revenue

Income should be divided between restricted and unrestricted to reflect donor or regulatory restrictions. This distinction is crucial to understanding the organization's flexibility in the use of funds received.

• Restricted income: funds earmarked for specific purposes, such as particular projects or specific periods. These funds may come from donations, grants, or funding with donor-imposed conditions limiting their use.
• Unrestricted income: funds that can be used at the discretion of the organization for any operational need. These include general donations, proceeds from nonspecific fundraising events, and other income that has no special restrictions.

Expenses

Expenses should be broken down into major categories to give a clear view of how resources are allocated. This breakdown helps to better understand the organization's priorities and efficiency in managing funds.

• Programmatic expenses: costs directly associated with the implementation of the organization's core programs and activities. These include salaries of operational staff, costs of materials and equipment used in projects, and other expenses directly related to the organization's missions.
• Fundraising expenses: costs incurred for fundraising activities, including events, marketing campaigns, and salaries of dedicated fundraising staff. This category highlights the investment made to secure future financial resources.
• Administrative expenses: general costs of running and administering the organization. These include administrative staff salaries, office rent, consulting fees, and other overhead costs necessary for the day-to-day operation of the organization.

Changes in shareholders' Net Assets

The income and expenses statement should report changes in net worth during the reporting period, broken down by fund category:

• Unrestricted funds: changes resulting from the use or appropriation of unrestricted revenues and non-programmatic expenditures.
• Restricted funds:
  • Temporarily restricted funds: changes due to the use of restricted funds according to donor-imposed conditions and their eventual transfer to unrestricted funds once conditions are met.
  • Permanently restricted funds: changes related to new permanently restricted gifts or changes in the investment policies of permanent assets.

Statement of Changes in Net Assets

Here is what the statement of changes in net assets must contain.

Changes in shareholders' Net Assets by period

The statement should report all changes in net assets broken down by period, clearly showing increases and decreases in the various funds.

• Increases in net assets: these may result from new donations, contributions, grants received, or other sources of income. Each increase should be specified in terms of restricted and unrestricted funds to highlight restrictions on the use of funds.
• Decreases in net assets: decreases may result from the use of funds to cover programmatic, fundraising, and administrative expenses. Again, it is important to specify whether the decreases involve restricted or unrestricted funds.

Details on contributions, donations and other sources of funding

The statement should include a detailed description of all funding sources received during the period, broken down by type and restriction.

• Contributions and donations: specify donations received, indicating whether they are restricted or unrestricted, and describe any conditions or restrictions imposed by donors.
• Grants and funding: detail grants obtained, including conditions of use and periods of application.
• Other income: include any other sources of funding, such as income from fundraising activities, investment income, or income from ancillary activities, detailing any applicable restrictions.

Use of funds under restrictions

The statement should clearly show how funds have been used according to donor or regulatory restrictions, ensuring transparency and compliance.

• Restricted funds:
  • Temporarily restricted funds: describe how these funds were used for specific projects or programs, and whether any restrictions were met, allowing the funds to be reclassified as unrestricted.
  • Permanently restricted funds: highlight the use of income generated by these funds to support the organization's activities, keeping the principal capital intact according to the conditions set by the donors.
• Unrestricted funds: indicate how these funds have been allocated for general operating expenses and other needs without specific restrictions.

Mandatory elements of the statement of changes in Net Assets

• Beginning balances
  • The beginning balances of each component of net assets at the beginning of the accounting period must be reported.
  • Example: share capital, reserves, retained earnings.
• Changes for each component
  • Detail all changes for each component of net assets during the accounting period.
  • These changes may include:
    • Profits or losses for the year.
    • Increases in capital stock.
    • Reductions in capital stock.
    • Dividend distributions (if applicable).
• Contributions and distributions from owners
  • If applicable, indicate contributions made by owners and distributions made to owners.
• Reserves
  • Any changes in reserves, such as legal reserves, extraordinary reserves, revaluation reserves, etc.
• Ending balance
  • Report the ending balances of each component of net assets at the end of the accounting period.

Steps to implement the statement of changes in Net Assets

• Identification of the components of shareholders' Net Assets
  • Determine all components of net assets that should be reported in the statement, such as share capital, reserves, and retained earnings.
• Collection of initial data
  • Collect the beginning balances of all components of net assets from the last closed financial statements.
• Recording of changes
  • Record all changes that have occurred during the accounting period, such as capital increases, recorded gains or losses, dividend distributions, and other changes in reserves.
• Calculating ending balances
  • Calculate the ending balances of each component of net assets taking into account the changes recorded.
• Preparation of schedule
  • Compile the statement of changes in net worth with all the information collected, making sure that the totals are correct and that all changes are adequately explained.

Statement of changes in funds

The Statement of Changes in Funds is a crucial accounting document that illustrates the changes in an organization's funds during an accounting period. According to the INPAG standard, the Statement of Changes in Funds must include a detailed set of information to ensure transparency and accuracy in reporting.

Here are the required elements of the statement of changes in funds.

• Initial balances of funds
  • The initial balances of each fund at the beginning of the accounting period must be reported.
• Revenue by fund
  • Detail the income received for each fund during the accounting period.
• Expenditures by fund
  • Detail the expenditures made for each fund during the accounting period.
• Transfers between funds
  • Information on any transfers of resources between different funds.
• Ending fund balances
  • Indication of the ending balance of each fund at the end of the accounting period.
• Variations in funds with restrictions
  • Specific details on changes in time-restricted or donor-restricted funds.

Statement of Cash Flows

Here is what the cash flow statement must contain.

Cash flows from operating activities

This section reports cash flows generated or used by the daily operations of the organization. It must include:

• Income from donations and grants: cash flows from donations, grants, and other funding sources not specifically tied to investments or financing.
• Payments for operating expenses: cash flows used to cover programmatic, fundraising, and administrative expenses, including salaries, supplies, and other operating costs.
• Receivables collections and payables payments: cash flows associated with the management of short-term receivables and payables.

Cash flows from investing activities

This section covers cash flows related to the purchase and sale of long-term assets and other investments. It must include:

• Purchases of fixed assets: cash flows used to purchase tangible fixed assets, such as buildings, equipment, and intangible fixed assets.
• Income from sales of fixed assets: cash flows generated from the sale of long-term assets.
• Financial investments: cash flows related to acquisitions or disposals of financial investments, such as securities and other investment instruments.

Cash flows from financing activities

This section reports cash flows associated with the organization's financing activities, including changes in restricted and unrestricted funds. It must include:

• Receipts from long-term restricted loans and donations: cash flows from donations and loans restricted specifically for long-term purposes.
• Repayment of long-term debts: cash flows used to repay long-term debts and obligations.
• Interest payments and other financing costs: cash flows related to interest payments and other financing-related costs.

Reconciliation of net income to net cash flow from operating activities

This section is critical to linking net income with actual cash flows from operations. It must include:

• Net income: the net economic result of the organization for the period.
• Adjustments for nonmonetary items: for example, depreciation and amortization.
• Changes in financial statement balances: changes in accounts receivable, accounts payable, inventories and other operating items.
• Extraordinary items: any extraordinary non-recurring cash inflows or outflows.

Explanatory notes

Explanatory notes should include detailed information regarding the accounting policies adopted, explanations of major items in the financial statements, and details of material subsequent events that could affect the understanding of the financial statements.

Here is what the explanatory notes must contain.

Information on accounting policies adopted

The notes to the financial statements should provide a detailed description of the accounting policies followed by the organization. This information helps users of financial statements understand the principles on which the figures reported are based.

• Principles of recognition and measurement: description of the criteria used to recognize and measure assets, liabilities, income, and expenses.
• Depreciation methods: explanation of the methods used to depreciate tangible and intangible assets.
• Valuation policies: information on valuation policies for inventories, receivables, and liabilities.
• Revenue recognition: criteria adopted for revenue recognition, including restricted and unrestricted donations.

Additional details on items in the balance sheet and income statement

Explanatory notes should provide additional details that help to better understand the items presented in the balance sheet and income statement.

• Analysis of principal items: detailed explanation of major items of assets, liabilities, income, and expenses. For example, a breakdown of fixed assets, long-term debt, and major revenue categories.
• Significant transactions: description of significant transactions that occurred during the period, such as acquisitions, sales of fixed assets, or extraordinary events.
• Significant changes: explanation of significant changes from previous periods, providing a context for understanding changes in financial data.

Information on possible risks and uncertainties

Explanatory notes should include information on any risks and uncertainties that could affect the organization. This information helps assess the financial strength and risk management of the institution.

• Financial risks: description of key financial risks, such as credit risk, liquidity risk, and market risk, and the policies adopted to manage them.
• Contingencies and contingent liabilities: information on legal contingencies, contingent liabilities, or other uncertain events that could have a significant financial impact.
• Risk management: details of the risk management strategies and policies implemented by the organization to mitigate the effects of such risks.

Segment reporting if applicable

If the organization operates in different industries or geographic areas, the explanatory notes should include segment reporting information to provide a more detailed view of financial and operational performance.

• Information by segment: details on revenues, expenses, assets, and liabilities for each operating or geographic segment.
• Aggregation criteria: explanation of the criteria used to aggregate data for different segments.
• Performance by segment: analysis of the financial and operational performance of each segment, highlighting differences and relative contributions to the overall performance of the organization.

Accrual accounting requirement

The INPAG standard requires that all transactions be recorded on an accrual basis. This means that transactions must be recognized in the period in which they occur, regardless of actual cash flows. Adopting accrual accounting provides a more accurate and realistic view of an organization's financial position and performance, improving the transparency and reliability of financial information.

Examples for Income from donations

When a donation is promised but has not yet been received insert:

• in Debtor Account column the account Debtors from donations.
• in Creditor Account column the account Income from donations.
• in the Amount column the promised amount.

This record recognizes the income as a debt, reflecting the promise of the donation, even though the money has not yet been received.

When the donation is actually received insert:

• in the Debtor Account column the account Bank.
• in the Creditor Account column the account Donation debtor.
• in the Amount column the received amount.

This recording adjusts the accounts once the money is actually received, eliminating the previously recorded debt.

Examples for project expenses

When an invoice for project services is received but not yet paid insert:

• in the Debtor Account column the account Project expenses.
• in the Creditor Account column the account Creditors.
• in the Amount column the invoice total amount.

This entry recognizes the expense when the invoice is received, regardless of whether it has been paid or not.

When the invoice is actually paid insert:

• in the Debtor Account column the account Creditors.
• in the Creditor Account column the account Bank.
• in the Amount column the paid invoice total amount.

This entry reduces creditors once the invoice has been paid, reflecting actual cash flow.

Benefits of accrual accounting

Adopting accrual accounting, as required by the INPAG standard, ensures that revenues and expenses are recorded in the correct period. This approach provides a more accurate view of the organization's financial activities, facilitating better resource management and more accurate planning. Nonprofit organizations that follow these accounting practices can demonstrate greater transparency and accountability, increasing the trust of donors, board members and other stakeholders.

Accounting for restricted grants and donations

INPAG requires that funds be distinguished between restricted and unrestricted funds. This distinction should be visible in the financial statements or notes.

Accounting for grant and donation income according to the INPAG standard requires a specific structure to ensure proper recording and recognition. The accounting process includes the following steps:

• Identify whether there is an enforceable agreement that confers rights and obligations.
• Identify the enforceable obligations in the agreement.
• Determine the amount of the transaction.
• Allocate the transaction amount to the enforceable obligations.
• Recognize the revenue when (or while) the enforceable obligation is satisfied.
• These steps ensure that revenue is recognized appropriately, accurately reflecting the economic activity of the organization.

Example of accounting transactions for restricted donations

Receipt of a grant for a specific project with implementing obligations.

When you receive the amount insert:

• in the Debtor Account column the account Cash/Bank or Donation debtor if the donation was promised.
• in the Creditor Account column the account Liabilities for grants.
• in the Amount column the amount received.

At this stage the amount received is recorded as a liability because the organization has an obligation to meet the conditions of the grant.

When you fulfill the executive obligation insert:

• in the Debtor Account column the account Expense1.
• in the Creditor Account column the account Bank.
• in the Amount column the paid amount.

The second transaction must be insert:

• in the Debtor Account column the account Liabilities from grants.
• in the Creditor Account column the account Income from grants.
• in the Amount column the paid amount.

Once the enforceable obligation is fulfilled, the liability is reduced and the amount is recognized as revenue, reflecting the completion of the project or condition fulfilled.

Accounting for unrestricted donations

Unrestricted donations, which do not impose specific obligations on the organization, follow a simpler accounting process than donations with enforceable obligations. These receipts can be recognized immediately upon receipt.

Example of an unrestricted donation

When you receive the amount insert:

• in the Debtor Account column the account Cash/Bank or Donation debtor if the donation was promised.
• in the Creditor Account column the account Income from donations.
• in the Amount column the received amount.

In this case the amount is immediately recognized as income since there are no specific obligations to be met.

Foreign currency conversion

Managing foreign currency transactions is an essential part of accounting, especially for nonprofit organizations that receive international grants and donations. The INPAS standard establishes precise rules for managing these transactions, including disclosure of foreign exchange gains and losses and retranslation of foreign currency monetary assets and liabilities related to grant agreements.

Foreign currency transactions must be translated into the functional currency using the exchange rate in effect on the date of the transaction. Monetary items, such as debtors and creditors, must be retranslated at the balance sheet date to reflect current exchange rates.

Example of transactions for foreign currency conversion

Receipt of 10'000$ grant when the exchange rate is 1$ = 0.90€.

Initial acknowledgement:

• in the Debtor Account column the account Cash/Bank.
• in the Creditor Account column the account Liabilities for grants.
• in the Amount column the amount 9'000€ (10'000$ * 0.90€ = 9'000€).

In this case the grant is recorded in euros at the exchange rate in effect at the time of the transaction.

Retranslation on the balance sheet date with the exchange rate 1$ = 0.85€.

• in the Debtor Account column the account Loss on exchange.
• in the Creditor Account column the account Cash/Bank.
• in the Amount column the lost amount 500€.

At the balance sheet date the grant must be retranslated at the new exchange rate. The difference between the initial value and the retranslated value is recorded as an exchange loss.

Treatment of exchange rate changes on grants

Exchange rate differences on monetary items related to grants should be treated in a manner consistent with the nature of the transaction. For example, if a grant received is to be spent on a specific project and the exchange rate varies, the amount to be reimbursed could differ due to exchange rate fluctuations.

For example a grant received of 10'000$ must be spent on a specific project. If the exchange rate varies and the grant must be partially repaid due to exchange rate differences.

No INPAS adoption for certain transactions

When an organization chooses not to apply INPAS standard for certain transactions, it is essential to provide a clear explanation and details of the accounting management adopted. The INPAS standard requires disclosure of the following information to maintain transparency and understandability in financial statements.

Mandatory disclosures in the case of no INPAS adoption

• Disclosure of transactions not compliant with INPAS
  • The organization must specify which transactions do not follow INPAS standards.
  • Example: “Donations in kind were not accounted for in accordance with INPAS standards.”
• Accounting treatment adopted
  • The alternative accounting treatment used for these transactions must be described.
  • Example: “In-kind donations were recorded at appraised value rather than market value according to INPAS guidelines.”
• Rationale for non adoption of INPAS
  • It is necessary to explain the reasons why INPAS standards were not applied.
  • Example: “Valuation of in-kind donations according to INPAS standards required specialized skills that the organization does not currently possess.”
• Impact on budgets
  • It must be indicated how the financial statements would differ if INPAS requirements had been applied.
  • Example: “If in-kind donations had been valued according to INPAS, the total value of income would have increased by €10,000.”
• Quantification of differences
  • Where possible differences between the accounting treatment adopted and that provided by INPAS should be quantified, without excessive costs.
  • Example: “Donations in kind were recorded at €5,000, while according to INPAS the correct value would have been €15,000, resulting in a difference of €10,000.”

References

• International Financial Reporting For Non Profit Organisations: www.ifr4npo.org

Diese Vorlage enthält einen HRM2-Kontenplan mit den typischen Konten und Kategorien für die Buchhaltung einer Kirchgemeinde. Einnahmen und Ausgaben lassen sich einfach erfassen – auch ohne Kenntnisse der doppelten Buchhaltung oder der Unterscheidung zwischen Soll und Haben.

In der Tabelle Konten sind die Bilanzkonten aufgeführt, während die Tabelle Kategorien der Erfassung von Einnahmen und Ausgaben dient.

Die Einnahmen und Ausgaben sind in mehrere Untergruppen gegliedert. Zudem stehen in der Tabelle Kategorien zwei Arten von Kostenstellen zur Verfügung, mit denen sich die Kosten der Kirchgemeinde und des Oratoriums getrennt verwalten lassen.

Konten und Kategorien können individuell angepasst und auf die spezifischen Bedürfnisse Ihrer Buchhaltung zugeschnitten werden.

Für erweiterte Anforderungen empfehlen wir die Vorlage Doppelte Buchhaltung für Kirchgemeinde.
 

Weitere Details finden Sie in unserer Dokumentation, insbesondere zu folgenden Themen:

• Einnahmen-/Ausgabenrechnung
• So beginnen
• Konten
• Kategorien
• Buchungen
• Neues Jahr erstellen
• Budget
• Ausdrucke

This template presents a very simple chart of accounts, ideal for teaching the basics of double-entry accounting, with Assets, Liabilities, Costs and Revenues, without subgroups.

For more information on Education:

• Accounting Education page
• Free subscription of Banana Plus for schools
• Teacher Tools: extension for Accounting exercises preparation and correction

To learn how to use Banana Accounting:

• ▶ Video: Banana Interface

Chart of Accounts

The Chart of Accounts, with Balance Sheet and Income Statement at a glance, is visible in the Accounts table.

It can be adapted by modifying, adding, and deleting accounts, according to the needs. More details on how to set up the chart of accounts are available in the online lesson Chart of Accounts.

An important aspect is that from an IT perspective, accounting software generally relies on the equation "Debits = Credits", which is rewritten as "Debits - Credits = 0". The developers have chosen to maintain this format, so debit amounts are associated by the system with the plus sign "+," while credit amounts are associated with the minus sign "-".

Opening Balances

In the Opening column, you enter the opening balances of Assets and Liabilities. Liabilities balances are entered with a minus sign in front.

Journal and Transactions

The Transactions table is the core of Banana Accounting and is used to enter double-entry accounting transactions. Students perform all operations here: they practice entering data, check it, and can correct any mistakes at any time.

To enter transactions in the journal, you need to complete the following columns:

• Date, eventual document number
• Description
• Debit Account
• Credit Account
• Amount

Individual transactions can take the form of a single row or be composed of multiple rows (if more than two accounts are involved). This is exactly the same as in the traditional paper form, but quicker thanks to the use of the computer.

After each transaction, the balances of the accounts (in the Accounts table) are automatically updated. This way, students can immediately see the impact of each operation, and the accounting is always in order.

Balance Column

Thanks to the Balance Column, students can instantly see if there are any accounting errors or anomalies and correct the data entered immediately.

Account cards

The Account Cards correspond to the ledgers and therefore show the movements of each individual account. They report the initial balance, the variations due to the entries made in the journal, and the resulting final balance.

Balance Sheet and Profit & Loss Statement

Once the accounting transactions have been entered, you can obtain the Balance Sheet and Profit & Loss Statement. The Chart of Accounts, which has already been automatically and instantly completed with the final balances, already shows the final Balance Sheet and Profit & Loss Statement.

Thanks to the Report > Enhanced Balance Sheet with Groups command, you can obtain an orderly and well-crafted presentation of the Balance Sheet and Profit & Loss Statement to be saved in PDF or printed out. They are "enhanced" and reproduced in a traditional style for presentation purposes.

The statements can be customised by choosing the sections to be printed, the period, the subdivision of the period and more.

Balance Sheet Analysis

By means of a special extension, from the menu Extensions > Cash Flow Statements and Financial Ratios, you can automatically obtain a report in PDF format containing:

• Liquidity ratios (Cash ratio, Quick ratio, Current ratio)
• Profitability ratios (ROE, ROI, ROS, ... )
• Efficiency ratios
• Cash Flow
• DuPont Analysis and Altman Index Z-Score

Scopri il libro che svela le logiche alla base dei software di contabilità, pensato per chiunque voglia comprendere a fondo il funzionamento dei programmi contabili. Questo testo offre una guida completa e accessibile, partendo dalla storia della contabilità fino alle tecnologie digitali più recenti, per mostrare come i software moderni automatizzano operazioni complesse di bilancio, calcolo e reporting.

• Funzionamento e logiche dei programmi di contabilità (formato PDF)

A chi è indirizzato?

Il libro è rivolto a una vasta gamma di lettori: professionisti, sviluppatori di software, docenti, studenti e chiunque si avvicini alla contabilità per la prima volta. È ideale per chi utilizza software di contabilità senza una formazione specifica, fornendo una comprensione più profonda delle logiche e dei meccanismi che facilitano la gestione contabile e permettono di sfruttare al meglio questi strumenti.

Perché leggere questo libro?

L'automazione dei software contabili ha semplificato notevolmente il lavoro di contabilità, ma spesso ha anche nascosto i meccanismi fondamentali della contabilità a partita doppia. Questo libro è stato scritto per colmare questa lacuna, offrendo una guida chiara che permette ai lettori di comprendere come i software gestiscono automaticamente diverse operazioni contabili. La comprensione delle logiche di base dietro questi strumenti consente di usare i software in modo più consapevole e di sfruttarne al massimo il potenziale.

Domenico Zucchetti, contabile, giurista e programmatore, è un pioniere nello sviluppo di soluzioni per la contabilità digitale. Con oltre 40 anni di esperienza nel settore, ha fondato Banana.ch SA e creato Banana Contabilità, uno dei software più accessibili per la gestione contabile. Zucchetti ha dedicato la sua carriera a rendere la contabilità intuitiva e automatizzata, focalizzandosi sulle esigenze delle piccole imprese e sull’efficacia didattica dei suoi strumenti. La sua profonda conoscenza dei principi contabili e delle tecnologie emergenti lo rende una figura di riferimento per chiunque voglia migliorare la gestione finanziaria aziendale.

Condividi la tua opinione

Siamo sempre interessati a conoscere le opinioni dei nostri lettori. Dopo aver letto “Funzionamento e logiche dei programmi di contabilità” ti invitiamo a condividere i tuoi feedback e suggerimenti. Facci anche sapere se dovessi trovare che alcuni argomenti vadano spiegati in maniera più semplicistica. Le tua opinione è preziosa e ci aiuta a migliorare continuamente la qualità del nostro lavoro.

Puoi inviare il tuo feedback tramite questo modulo. Grazie per il tuo contributo!
 

[This extension and this documentation is in development and is not in its final form]

The Automatic Corrections for Accounting Exams extension can adapt existing files or use the chart of accounts templates available directly in Banana Accounting+. This makes them suitable for training purposes as well as for exercises and exams in double-entry accounting. 

• Create or open a double-entry accounting file.
• From the Banana menu, click on Extensions.
• Click on Automatic Corrections for Accounting Exams.
• Click on File Preparation.
• The extension asks you to prepare either a teacher file or a student file.
• Choose the file type you want to prepare and click the Ok button.

• Click the OK button in the window that appears. The modifications shown in the image below will then be applied to the file.

The extension will automatically add the necessary columns to the file, while preserving your existing transactions.

If the required columns are already present, they will not be added again. If the file is already prepared, this function will make no changes.

If your file is already ready to be used this function will not make any modifications.

The following columns are added:

• Auto (the first column on the left).
• Max Score.
• Auto Score.
• Adjusted Score.
• Corrections Notes.

This feature is available only for double-entry accounting templates.

Instructions Added for the Teacher’s File

• A hash symbol (#) is inserted in the Doc column of the Transactions Table.
• The key teacherfile is added in the Description column (without quotation marks and written entirely in lowercase).

Instructions Added for the Student’s File

• The word Student is added in the Doc column (without quotation marks and with the first letter capitalized).

[This extension and this documentation is in development and is not in its final form]

The automatic correction can be executed only on the student’s file:

• It is not available when run on the teacher’s file.
• It can only be performed if no previous automatic corrections have been applied to the student’s file.
• If a second correction is needed, the existing automatic corrections must first be removed using the Delete the corrections function.

Check the solution

This is the workflow for running an automatic correction with the extension:

• From the menu, select Actions > Recalculate Accounting. The program will notify you if there are issues within the file.  
• Run the command Extensions > Automatic Corrections for Accounting Exams > Correct the Exercises.
  • This command performs specific checks, such as verifying that account numbers and other data are correct.
    • If a transaction contains an error, a message will appear in the Corrections Notes column.
    • The Auto Score column will be updated with the calculated score.

[This extension and this documentation is in development and is not in its final form]

This functionality works only if automatic corrections have already been executed using Correct the exercises.

The Adjusted Score column allows the teacher to manually change the automatically calculated score whenever necessary. After making adjustments, the teacher can recalculate the total score for the entire exercise through the extension menu.

The last row, which displays the total score, will then be updated with the final adjusted score set by the teacher.

[This extension and this documentation is in development and is not in its final form]

This function removes the rows that were automatically added by the extension during the correction process.

The student’s original rows remain in the file, but any color highlighting, scores or error messages are removed.

In this way, the student’s file is restored to its original state.

The function can only be executed if an automatic correction has already been performed, and it applies exclusively to the student’s file.

[This extension and this documentation is in development and is not in its final form]

The settings allow you to decide whether to assign an automatic score and to define the points for each condition being verified.

All settings must be configured in the teacher’s file, and they will be applied automatically when grading the students’ files.

Available Settings in the teacher's file

The currently available settings and their descriptions are as follows:

• Point-based assessment: enables or disables the automatic scoring of student records.
• Points for correct date: awards points if the student’s date matches the teacher’s date.
  • Set to zero if you do not want to grade this field.
• Points for correct debit account: assigns a score if the entered debit account is correct.
  • Set to zero if you do not want to grade this field.
• Points for correct credit account: assigns a score if the entered credit account is correct.
  • Set to zero if you do not want to grade this field.
• Separate debit and credit accounts : allows for separate scoring if the debit account and credit account are correct.
  • If the checkbox is checked the score is assigned separately even if one of the debit or credit accounts is incorrect.
  • If the checkbox is not selected, the score is zero when both the debit and credit accounts are incorrect, or when either one is incorrect.
  • If the checkbox is not selected, points are awarded only when both the debit and credit accounts are correct.
    • In this case the debit account score and credit account score are added together as the final score assigned to the student.
• Points for correct amount: assigns a score if the entered amount is correct.
  • Set to zero if you do not want to grade this field.
• Points for VAT code: assigns a score if the entered VAT code is correct.
  • Set to zero if you do not want to grade this field.
  • The VAT code points are only considered for templates with VAT functionalities enabled.
• Points for currency amount: assigns a score if the entered currency amount is correct.
  • Set to zero if you do not want to grade this field.
  • The currency amount points are only considered for multi-currency templates.
• Points for currency: assigns a score if the entered currency is correct.
  • Set to zero if you do not want to grade this field.
  • The currency points are only considered for multi-currency templates.
• Points for exchange rate: assigns a score if the entered exchange rate is correct.
  • Set to zero if you do not want to grade this field.
  • The exchange rate points are only considered for multi-currency templates.
• Penalize the amount only if Debit and Credit are correct: assigns a score to the amount if the entered Debit and Credit Accounts are correct.

At the bottom, an image of the settings window in the teacher’s file illustrates how these options are configured.

For more information see:

• Investment accounting integrated in financial accounting 

Use for your accounting

This template is conceived to experiment with the Portfolio extension and it contains example of investments and transactions. 

The accounts list is very limited, but if you want to use as a base of your accounting simply:

• Delete all transactions
• Delete the opening amount in the Accounts table
• Delete the opening values in the Items table.

The Accounts Settings dialog allows you to specify the accounts used for different investment transactions, such as sales, valuation adjustments, and other investment-related entries.

These accounts are used by the Investment Accounting extension when it automatically calculates or creates accounting transactions, ensuring that the appropriate accounts are used for each type of operation.

You do not need to specify every account, only those required for your accounting setup. The accounts entered in the dialog must exist in the Accounts table. If an account does not exist, the program displays an error message when you try to confirm the settings.

Sections in the Dialog and Account Usage

The dialog is divided into three main sections.

Balance Accounts

This section contains the Balance Sheet accounts associated with investments and other investment-related balances.

• Assets 
  Contains the accounts used to record investment assets.
  The first time you open the dialog, the program automatically fills this field with the Investment Balance Sheet Accounts specified in the Asset Account column of the Items table.
• Liabilities
  Contains the accounts used for investment-related liabilities, such as margin loans or other financial obligations.
   

Value Changing Accounts

This section contains the accounts used to record realized and unrealized gains and losses, exchange rate differences, and other adjustments affecting the value of investments.

• Realized Gain: Account for recording realized gains from investment sales.
• Realized Loss: Account for recording realized losses from investment sales.
• Unrealized Gain: Account for recording unrealized gains due to an increase in the market value of investments.
  Used by the Create adjustment transactions command.
• Unrealized Loss: Account for recording unrealized losses due to a decrease in the market value of investments.
  Used by the Create adjustment transactions command.
• Realized Exchange Rate Gain: Account for recording realized exchange rate gains arising from the sale of investments denominated in a foreign currency.
• Realized Exchange Rate Loss: Account for recording realized exchange rate losses arising from the sale of investments denominated in a foreign currency.
• Unrealized Exchange Rate Gain: Account for recording unrealized currency gains due to favorable exchange rate movements.
• Unrealized Exchange Rate Loss: Account for recording unrealized currency losses due to unfavorable exchange rate movements.
• Depreciations: Account for recording investment depreciation adjustments, if applicable.
• Other Value Changing Costs: Account for miscellaneous expenses affecting the value of investments.
• Other Value Changing Income: Account for miscellaneous income affecting the value of investments.
• Rounding Differences: Account for small discrepancies due to rounding or decimal precision differences.

Profit and Loss Accounts

This section contains the accounts used to record income and expenses related to investment activities.

• Charges: Account for general investment-related charges and fees.
• Commissions: Account for broker or bank commissions on investment transactions.
• Interest Earned: Account for interest income from bonds or other financial instruments.
• Interest Paid: Account for interest expenses related to investment loans or margin trading.
• Dividends Income: Account for dividend income received from investments.
• Other Income: Account for any additional investment-related income not classified elsewhere.
• Other Costs: Account for any additional investment-related costs not classified elsewhere.

Error Messages

• Account XXX not found in the Accounts table: The account entered does not exist in the Accounts table.
  • Add the account to your Accounts table.
  • Select the “Ignore warnings/errors” checkbox at the bottom of the dialog to ignore the error.

This command updates the current market prices of investments in the Items table. Market price data can be imported from a CSV file or from the clipboard.

Before applying the changes, Banana Accounting displays a preview in the Commit changes dialog. Once the changes are confirmed, the imported prices are entered in the Price Current column of the Items table.

Price Current Column

The Price Current column in the Items table contains the current market price used to calculate the current value of the investment.

You can update Price Current manually, by copying and pasting values into the Items table, or by using the Update market prices command to import prices for multiple investments.

When market prices are imported and the changes are confirmed, the command updates the Price Current column of the corresponding Items.

Prepare Current Market Price Data

Current market prices can be obtained from financial information providers and prepared in an Excel or CSV file for import.

For each investment, provide:

• the ISIN or other identifier used to identify the investment
• the corresponding current market price.

Make sure that the identifier used in the import data corresponds exactly to the identifier entered for the investment in the Items table.

File Format

The extension expects the data to be in the following two-column format, with ISIN and current market price separated by a semicolon (;):

US123456789;11.04873
IT000792468;10.98732
...

• First column: The ISIN or other investment identifier.
• Second column: The current market price, without thousands separators and using a period (".") as the decimal separator.

Import Procedure

You can import the data in two different ways.

Import *.csv File

1. Choose Extensions > Investment accounting > Update market prices.
2. Select the *.csv file.
3. Review the changes in the Commit changes dialog and confirm them.

Import from Clipboard

1. Choose Actions > Import to accounting and select the Import File option.
2. Select the extension to be used, in this case 2. Update market prices.
3. Open the Excel file, select the data, and copy it to the clipboard.
4. In the import dialog, select Import data from clipboard.
5. Click OK.
6. Review the changes in the Commit changes dialog and confirm them.

Error Messages

• Unrecognised *.csv file format: The format of the *.csv file you are trying to import does not match the required format.
  • Make sure that you selected the correct file.
  • Check that the data follows the format described in the File Format section above.
• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to the accounting file.
• Asset: XXX not found in the Items table: The identifier contained in the imported data does not correspond to an investment in the Items table.
  • Check that the identifier is correct and corresponds to the one entered in the Items table.
  • If the investment has not yet been defined, add it to the Items table before importing its market price.

The Calculate sales data dialog allows you to calculate the realized gain or loss resulting from the sale of an investment and, when required, create the related accounting transactions.

The dialog provides two main functions:

1. Calculate the Sale Result – Click Calculate profit or loss to preview the realized gain or loss based on the data entered in the dialog or automatically retrieved from the accounting file. No accounting transactions are created. This function can also be used without starting from the sale transaction row in the Transactions table.
2. Create the Sales Record – Click Create sales record to create the accounting transactions required to complete the sale recording. To use this function, start from the sale transaction row in the Transactions table that records the net proceeds from the investment sale.

Start from the Sale Transaction Row

When creating the sales record, the program needs to identify the transaction to be completed with the additional entries required to record the sale, such as charges, realized gains or losses, and exchange rate differences. Therefore, you must start from the transaction row that records the net proceeds from the investment sale.

If this row already includes:

• Item (security ID)
• Quantity
• Unit Price (Market Price)
• Exchange Rate (for multi-currency accounting)

The dialog retrieves this information automatically. Otherwise, you need to enter the missing information in the dialog.

The sale transaction row is the only row that must be entered manually. Once this row is available, the program can automatically create the additional entries required to complete the sale recording.

How to use the dialog

When you execute this command, a dialog titled Calculate book profit/loss on sale opens.

Enter or review the information required for the sale:

• Security Data:
  • Id (ISIN): Select the security from the dropdown.
  • Type: Displays whether the security is a Stock or a Bond.
  • Quantity/Nominal Value: Enter the quantity or nominal value of the investment being sold.
  • Current Price: Enter the price per unit at which the investment is being sold.
  • Current Exchange Rate: For investments denominated in a foreign currency, enter the exchange rate applicable to the transaction.
  • Bank Charges: Enter any bank charges related to the sale. If no amount is entered, the corresponding transaction is not created.
  • Other Charges: Enter any additional costs related to the sale. If no amount is entered, the corresponding transaction is not created.
  • Accrued Interests: For bonds, enter any accrued interest related to the sale. This field is enabled only for bonds.
• Results Preview: Once the required data is entered, click Calculate profit or loss to generate a preview showing:
  • Actual Quantity:  The quantity held before the sale.
  • Book Value per Unit: The current book value per unit of the investment.
  • Total Book Value: The book value of the investment quantity being sold.
  • Total at Current Price: The value of the investment quantity being sold at the entered Current Price.
  • Book Profit/Loss: The difference between the book value and the sale value.
  • Exchange Rate Profit/Loss: For investments denominated in a foreign currency, the gain or loss resulting from exchange rate differences.

Amounts are displayed using the number of decimal places defined for the corresponding columns in the Transactions table.

When you enter an amount in the dialog, make sure to use the local number format (for example, “1'234.56” in Switzerland), as this is the format expected by the program.

Recording the Sale

Once you are satisfied with the preview, click Create sales record to create the accounting entries required to complete the sale recording. The program displays a confirmation dialog showing the entries to be added or modified, allowing you to review them before applying the changes.

• Upon confirmation, the program updates the accounting records with the new or modified entries.
• If the quantity is zero or the calculated profit/loss is zero, no transaction is created.
• The program adds a transaction identifier to the ExternalReference column of both the original sale row and any newly created rows. This prevents duplicate entries if the command is run multiple times on the same sale row.
• If the program detects an existing record for this sale, it will ask whether you want to overwrite it.

This procedure helps ensure that investment sales are correctly recorded while allowing you to review the accounting entries before they are applied.

In the example shown in the image, placeholder accounts are used. These are used when the corresponding accounts have not been defined in the Accounts Settings dialog.

The extension uses a neutral number (±123.00) in the Quantity column when recording the realized gain or loss. A neutral quantity does not change the quantity held but allows the amount of the realized gain or loss to be associated with the investment and its corresponding unit value to be shown in the Unit Price column. This is especially useful for investment funds and ETFs.

Error Messages

• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to your file.
• Asset: XXX not foun: The selected Asset does not exist in the Items table.
  • Add the Item to the Items table
  • A valid Asset must have an ID and an Asset Account
• Asset: XXX without assigned Asset Account: No Asset Account has been assigned to this Asset in the Items table.
  • Define an account in the Asset Account column for the Asset in the Items table.
• Asset: XXX without assigned type: No Asset Type has been defined for this Asset.
  • Define the Asset Type in the Items table.
• The selected row does not contain the Asset ID: The selected row does not contain a valid Asset ID. To create the sales record, the selected row must contain the ID of an Asset defined in the Items table.
• The selected row does not contain a valid sale Quantity: The selected row does not contain a valid quantity for an investment sale. The sale quantity must be negative. Check that the quantity is preceded by a minus sign (-) and that you have selected a sale row rather than a purchase row.
• The selected row in the Transactions table is not correct: The selected row does not correspond to the investment sale row required to create the sales record.
• The selected row in the Transactions table is not valid: The selected row in the Transactions table is not a valid transaction row.

This command automatically creates adjustment transactions to align the book value of investments with their current market value and, for investments denominated in a foreign currency, with current exchange rates. Adjustment transactions can be created multiple times during the year. For year-end adjustments, see Investment Accounting Opening and Closing the Year.

Define Current Market Values

Set Up the Current Prices

In the Items table, enter the current market price for each investment in the Price Current column.

You can:

• Enter the current prices manually, including only for the investments for which you want to create adjustment transactions.
• Use the Update Market Prices command to import and update current prices for multiple investments.

Current Exchange Rates

For investments denominated in a foreign currency, the current value in base currency is automatically calculated using the current exchange rate defined for the corresponding currency in the Exchange rates table.

The current exchange rate is the exchange rate entered without a specific date. For more information, see Items Table with Investments List.

Adjustment Transactions Dialog

When you run the Create adjustment transactions command, a dialog asks you to enter the date to be used for the adjustment transactions. By default, the current date is suggested.

All adjustment transactions created by the command are recorded with the specified date.

Commit Changes Dialog

Before the adjustment transactions are recorded, the Commit changes dialog displays a preview of all the transactions that will be created, allowing you to review them before confirming the changes.

Adjustement Transactions

Adjustment transactions are generated and grouped by investment. If both a market price adjustment and an exchange rate adjustment are required for the same investment, the corresponding transactions are kept together.

Adjustment transactions are recorded using the Asset Account defined for the investment in the Items table, increasing or decreasing its book value. The offsetting entry is recorded in the corresponding gain or loss account.

If the following accounts are defined in the Accounts Settings dialog, the program uses them to record the adjustments:

• Unrealized Gain / Unrealized Loss for market price adjustments.
• Unrealized Exchange Rate Gain / Unrealized Exchange Rate Loss for exchange rate adjustments.

If the required accounts are not defined in the Accounts Settings dialog, the program inserts descriptive placeholder accounts in the generated transactions.

Once the adjustment transactions have been recorded, verify that the balances of the Asset Accounts match the current values of the corresponding investments in the Items table. For more information, see Create Adjustment Transactions.

In the following cases, no adjustment transactions are created:

• The book value already corresponds to the current market value and, for investments denominated in a foreign currency, the book exchange rate corresponds to the current exchange rate.
• The investment has a current quantity of zero.
• No current market price is defined for the investment.

Error Messages

• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to your file.
• No Asset found in the Items table: The Items table does not contain any valid Assets.
  • Add Assets to the Items table.
  • A valid Asset must have an ID and an Asset Account.
• No Asset with current price found in the Items table: No Asset with a valid current price was found in the Items table.
• The carrying amounts are already aligned with the current market prices. No unrealized gains or losses have been generated: The book values of the investments are already aligned with their current market values and, where applicable, current exchange rates. No adjustment transactions are required.

The Check Balances report verifies that the values of individual investments are consistent with the balances of the Asset Accounts to which they are assigned.

This check is particularly useful at the beginning of a new accounting year to verify that:

• Opening and closing balances have been recorded correctly.
• The values of individual investments are consistent with the balances of their corresponding Asset Accounts.

Currently, the check is performed only for the current accounting year.

Why Use This Report?

The report helps you:

• Identify discrepancies between investment values and the balances of the corresponding Asset Accounts.
• Verify that investments and their assigned Asset Accounts remain consistent.
• Check the consistency of balances after year-end closing.

The report can be exported and saved at any time. For more information, see Printouts/preview.

Error Messages

• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to your file.
• No Asset found in the Items table: The Items table does not contain any Asset.
  • Add Assets to the Items table.
  • A valid Asset must have an ID and an Asset Account.
• No Asset accounts found in the Items table: No Asset Accounts have been assigned to the Assets in the Items table.
  • Define an Asset Account for each Asset using the  Asset Account column. in the Items table.

The Reconciliation Report provides a detailed overview of the transactions recorded for investments and verifies that the balance of each Asset Account in the accounting records is consistent with the balance calculated from the transactions of the investments assigned to that account.

At the end of the report, a reconciliation summary shows the opening balance, the net change during the period, and the closing balance, allowing you to verify that the Asset Account balance matches the balance calculated from the corresponding investment transactions. Any differences are shown in the Differences fields, with the corresponding amounts highlighted in red.

Selection Dialog

Select the Asset Account(s) for which you want to generate the reconciliation report.

Report Structure

The structure of this report is similar to the Security Card report, as it lists the transactions for each investment assigned to the selected Asset Account.

For each selected Asset Account, a separate table is generated on a new page of the report.

Saving and Exporting the Report

The report can be exported and saved at any time. For more information, see Printouts/preview.

Error Messages

• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to your file.
• No Asset found in the Items table: The Items table does not contain any Asset.
  • Add Assets to the Items table.
  • A valid Asset must have an ID and an Asset Account.
• No Asset accounts found in the Items table: No Asset Accounts have been assigned to the Assets in the Items table.
  • Define an Asset account for each Asset in the Items table using the Asset Account column.

The Security Card report provides a detailed overview of all transactions recorded for a specific investment. Its structure is similar to the Account Card, but the report is filtered by investment and also shows how the quantity held and the book value change after each transaction.

Selection Dialog

Select the investment for which you want to generate the Security Card report. By default, the dialog displays the list of investments defined in the Items table.

If the selected investment is not found in the Items table, an error message is displayed. Make sure that the investment is correctly defined in the table.

When you reopen the dialog, the investment selected the last time is displayed again.

Report structure

• Date: Transaction date.
• Doc: Transaction number.
• Description: Transaction description.
• Debit (item Currency): Debit amount in the item currency.
• Credit (item Currency): Credit amount in the item currency.
• Quantity:
  • Purchased: No sign.
  • Sold: With minus '-' sign.
  • Neutral: With neutral number symbol: '±'.
• Unit Price (item Currency): purchase or sale (unit) price of the investment.
• Balance (item Currency): Balance amount in the item currency.
• Quantity Balance: Current quantity of securities.
• Book value per unit (item Currency): Current book value per unit of the investment.
• Debit (Base Currency): Debit amount in base currency.
• Credit (Base Currency): Credit amount in base currency.
• Balance (Base Currency): Balance amount in base currency.