All companies must keep up to date a series of mandatory and official books,through which business activity is recorded throughout the year.
These books are included in three different groups, of commercial, tax and accounting legislation,which often tend to fall into oblivion, and generate doubts in many entrepreneurs.
That is why in AYCE Laborytax we are going to tell you the different mandatory books that your company must bring up to date,with the aim of helping you meet your business obligations.
The mercantile books are those that are responsible for collecting any type of agreement between partners, general meetings, shareholders,etc., being advisable to have specialized commercial advice to carry them out.
A. Book of minutes
As the name implies, the minutes book is responsible for collecting all the minutes of any meeting,agreement or vote that has taken place within the company, including also the number of attendees, the date, the place or any other information that serves to justify any business decision.
It is necessary to differentiate the Book of Minutes of the Board of Directors, and the Book of Minutes of the General Attach of Partners.
In the case of Sole Proprietorships (SLU), the sole member exercises the powers of the General Meeting and its decisions are recorded in a record that is also recorded in the Minutes Book.
B. Partner or stock record book
These are books that are responsible for recording the identity of the partners, the company or the shares,as well as their participation within the company, and any changes that may occur.
- 1. Partner registration book:
The partner registration book is mandatory for limited liability companies (SL) and labor limited companies (SLL), since these are companies in which most of the capital is contributed by the workers themselves.
They will also be mandatory in mutual guarantee companies (SGR), which are responsible for facilitating access to credit for SMEs.
- 2. Record book of actions actions nominatvias:
The registered book of registered shares is used in the case of public limited companies with registered shares. These companies, whose shares are configured as nominative, are obliged to keep these books, since it identifies the shareholders and the successive transfers of the shares.
C. Register of sole proprietorships
It includes the contracts concluded between the sole partner and the company.
Those companies that invoice with VAT must have a series of books in which any transaction supported with VAT is recorded,with the aim of keeping an exhaustive record of movements of income and expenses:
- Book of invoices issued:
This book should keep track of all VAT invoices issued to your customers.
- Book of invoices received:
In the same way as in the receipts book, all the company’s expense invoices must be posted here.
- Book of capital goods
- Intra-Community transaction book:
Any type of transaction with a customer or supplier in the European Union must be recorded here. Contact our tax advisors if you have any questions.
The mandatory accounting record books for companies are established in article 25 of the Commercial Code:
All transactions related to economic activity,either on a daily or chronological basis, must be recorded in the journal.
These transactions must be recorded under an accounting format and terminology,so it may be necessary to have a specialized accounting advisor, who will be responsible for their management and interpretation.
The journal must be made in each financial period, which usually coincides with the calendar year. It must start with the registration of the initial situation of the company (opening seat), subsequently collecting all the operations carried out throughout the year, the regularization entry and, finally, register the final situation of the year (closing seat).
Inventory book and annual accounts
The book of inventories and annual accounts is responsible for collecting the initial situation of the company, as well as its evolution through balance sheets of sums and balances, and the final inventory of the company.
In addition, the inventory book and annual accounts must also contain a set of accounting reports known as “annual accounts”:
- Balance sheet: report on the assets of the company.
- Profit and loss account: reports of income, expenses and final results.
- Statement of changes in net worth– Report that records any changes in corporate wealth.
- Report of the exercise: a report in which all previous reports must be explained and detailed.
How to legalize the mandatory books of companies?
As established by the Commercial Code and the Regulations of the Mercantile Registry, all companies are obliged to legalize their mandatory books.
To do this, they must present the mandatory books in the Mercantile Registry,through a diligence and a seal that certifies the originality of the books, thus avoiding their subsequent manipulation.
The diligence of the registrar must identify the entrepreneur,including all his registration data, and express which book it is, as well as the number of sheets that compose it, and the sealing system used.
All companies are obliged to keep the register of a series of mandatory books, of a commercial, fiscal and accounting nature, which are responsible for recording any activity carried out by a company throughout the year.