Entry accounting explanation

There are 2 entries for one invoice, 4 entries for VAT. The price of one entry is 0.80 €.

Therefore, if your company has 20 invoices per month, then 20 × 2 or 40 entries, at a price of 32 € + VAT.

When you are liable for VAT, 20 invoices are 80 entries and priced at 64 € + VAT. Entries resulting from bank transactions will be added to the price.

There are 2 entries for each transaction. * 1 original document (checks, invoices, contracts) equals 2 entries, cost entry and debt entry. The cost entry enters the expense into the account and is recognized in the profit and loss account.

Debt entry reduces cash or bank balance, debt statement is reflected in the balance sheet (in the balance sheet is the assets and liabilities of the company, expenses and income in the profit and loss account).

* VAT payers add 2 entries for each transaction (purchasers’ advances – sales invoices or invoices from suppliers, and another entry for VAT payment). Therefore, each transaction (i.e., a sales invoice) means at least 4 entries for a taxable person, in some specific cases even more.