Accounting and Bookkeeping (GAAP)
We provide a wide range of solutions in different accounting areas such as: Account Management, bookkeeping, financial information, financial records, payroll solutions, accounting documentation and annual accounts.
You are in great company, at Henry Towers we want to be you partner in Spain (Madrid and Barcelona). In our ambition to maximize the success of your business, we offer a wide range of accounting services: from bookkeeping to management reporting, we assist clients whether they need a full outsourced solution, interim support during busy periods, short term cover, month end support, or specific technical resource to assist with accounting matters alongside their existing teams. We make it easy, as one, two and three to run your business.
Precision and accuracy it is required to perform this service properly. These values are in the pillars of Henry Towers. Preserving the particularity of each service, we have a standard approach with our clients, help you run your business and make it successful. Hereto our services require to be as easy for you to deal with as one, two and three.
Information gathering and context understanding about Accounting and bookkeeping
Our team will be working with you and your teams to understand the business context and any other information, so we can assess properly the different activities we need to perform. We expect our client to submit to us the invoices received and declare to us the business activities, such and not limited to: sales contracts, payments, hires, general meetings, etc.
Execution process of Accounting and bookkeeping
Our team of experts will process the information and allocate properly each concept on the books, as well as keeping the minutes of the general meetings or shareholder meeting. We will remove all this burden from your day to day so you can focus on what you like the most, your business. Henry Towers’ services include the declaration and reporting to the Spanish authorities, so your business is safe and compliant.
Accounting and bookkeeping Report
In accordance with you we will define the managerial reporting you need to run your business and keep you updated on our progress as well as the results of your business. Our experience provides a wide range of best practices for you to benefit from.
The adoption in 2003 by the European Union (EU) of the International Accounting Standards / International Financial Reporting Standards (IAS / IFRS) has meant that consolidated financial statements of listed groups have been formulated since 2005 in accordance with the mentioned IAS / IFRS, but the scope of that adoption did not reach the individual financial statements of the companies. Therefore, there was a model of accounting dualism: listed groups were applying the IAS while for the individual financial statements the applicable law was that established by the Spanish law – commercial laws (Commercial Law and Corporate Enterprises Act) and its regulatory development through the Spanish GAAP (PGC - Plan General de Contabilidad) –.
The existence of the abovementioned dualism required a commercial and accounting reform, which began with the Law 16/2007, of July 4th, the Royal Decree 1514/2007 of October 16th which approves the General Accounting Plan and the Royal Decree 1515/2007, of October 16th, approving the General Accounting Plan for Small and Medium Enterprises and the specific accounting criteria for microenterprises.
The reform is quite deep, since the following operations were regulated in further detail:
- Financial instruments.
- Tax on benefits.
- New valuation criteria: market value.
- Information required regarding related parties.
- A complete framework for the financial statements.
- Accounting principles.
The General Accounting Plan from 2007 is divided in five parts which are preceded by an Introduction explaining its fundamental characteristics:
- Conceptual framework of accounting.
- Registration and valuation rules.
- Financial statements.
- Account structure.
- Definitions and accounting relationships.
- While points one to three are mandatory, points four and five are voluntary.
Its incorporation to the PGC (General Accounting Plan) and being considered a legal norm itself are aimed to guarantee the rigor and coherence of the registration and valuation procedure and rules. The conceptual framework is divided in the following 7 points:
- Annual accounts. Fair presentation.
- Disclosure requirements in annual accounts.
- Accounting principles.
- Components of the annual accounts.
- Recognition criteria for elements of annual accounts.
- Valuation and measurement criteria.
- Generally accepted accounting principles and standards.
Registration and valuations standards
The second part of the PGC (General Accounting Plan), which is also mandatory, develops accounting principles and other provisions contained in the Framework. It includes the criteria for recording and valuing the various transactions and assets of the company from a general perspective, without falling into the particular cases. The adequate accounting treatment of those is stablished through the resolutions that under development of the PGC areapproved by the ICAC, in execution of the competence attributed by the first final provision of the Accounting Reform Law.
The PGC provides for the following registration and valuation standards:
- Application of the Accounting Framework.
- Tangible fixed assets: property, plant and equipment.
- Specific standards on tangible fixed assets.
- Investment property.
- Intangible assets.
- Specific standards on intangible assets.
- Non-current assets and disposal groups held for sale.
- Leases and similar operations.
- Financial instruments.
- Foreign currency.
- Value Added Tax (VAT), General Indirect Canary Tax (IGIC) and other indirect taxes.
- Income tax.
- Income from sales and the rendering of services.
- Provisions and contingencies.
- Liabilities arising from long-term employee benefits.
- Transactions with payments based on equity instruments.
- Grants, donations and heritages received.
- Business combinations.
- Joint ventures.
- Transactions between group companies.
- Changes in accounting criteria, errors and accounting estimates.
- Events after year-end.
The third part of the PGC, also mandatory, is related to the financial statements and it is divided into three parts:
- Rules for the preparation of the financial statements.
- Standards commonly applicable.
- Abbreviated annual accounts.
The rules for the preparation of the annual accounts include the rules regarding their formulation, as well as the definitions and explanatory explanations of the content of the documents that comprise them.
The inclusion in the PGC of abbreviated annual accounts models has its raison d'être in those accounting subjects excluded from the PGC scope of SMEs and those who voluntarily prefer to directly apply the PGC.
The figures included in the financial statements according to the PGC are as follows:
- Balance sheet.
- Profit and loss account.
ECPN. Statement of Changes in Equity.
- EFE. Statement of cash flows.
- Notes to the financial statements.
Chart of accounts
The fourth part of the PGC contains the relationship of all the accounts proposed to account all the operations of a company.
Definitions and accounting relationships
The fifth part, which is not mandatory, includes the definitions of the different groups, subgroups and accounts, the most outstanding characteristics and economic facts in which are collected.
Precision, this what this service requires. We at Henry Towers, deliver outstanding service. Our process are very simple towards our clients, we ensure the proper understanding of your requirement and business context, we process the task and report back to you the status and completion
Accounting and Payroll Manager at Henry Towers