What is a book account?

A book account is the basic element of all accounting as it acts as the container for a series of transactions that have the same nature, thus certain transactions or economic movements will have a place in one or another book account depending on their characteristics.

These accounts will be used to prepare reports as indicators of the economic reality of the company.

The set of book accounts is called the chart of accounts, which is included in the General Accounting Plan, and which, in addition to said accounts, includes their nature and the interpretation that must be made of said book accounts.

We can differentiate the following groups of accounts within our General Accounting Plan:

1. Basic financing
2. Immobilized
3. Stocks
4. Creditors and debtors
5. Financial accounts
6. Purchases and Expenses
7. Sales and Income
8. Equity expenses
9. Net worth income

These groups are distributed into subgroups at different digits of detail, reaching several levels of accounts and subaccounts, which will be the levels with more digits and therefore with greater detail.

Some charts of accounts may vary, according to different types of activities, such as construction companies, non-profit organizations, or political parties.

When registering a new company in Holded, you will have to choose the spanish legal structure of your business. According to what you have selected you will have a chart of accounts and specific accounting groups among:

• Freelance
• Limited Company
• Limited Liability Company
• Community of property
• Association
• Non-profit entity
• Civil society Personal

Once your company profile has been created, this chart of accounts cannot be modified. We recommend checking that the related chart of accounts includes all the accounts you work with.

By default the book accounts in Holded work with 8 digits.
In case you want to work with more than 8 you should select the number of digits before starting to create invoices or entries.