Chart of accounts under Spain’s General Accounting Plan for SMEs

Accounting is a key activity for any company, since it allows you to maintain exhaustive control over your financial situation. In this context, the General Accounting Plan (PGC) becomes a fundamental tool to comply with accounting regulations and guarantee transparency in economic management. In this article we explain in great detail what the PGC is, what its chart of accounts is for, what it includes and how it is prepared in small and medium-sized companies (SMEs).

Accounting is a key activity for any company, since it allows you to maintain exhaustive control over your financial situation. In this context, the chart of accounts of the General Accounting Plan for SMEs It becomes a fundamental tool to comply with accounting regulations and guarantee transparency in economic management. In this article we explain in great detail what the PGC is, what its chart of accounts is for, what it includes and how it is prepared in small and medium-sized companies.

What is the General Accounting Plan?

The General Accounting Plan (PGC) is a regulation that regulates the accounting of companies in Spain. Its objective is to offer a homogeneous framework for the recording of all economic transactions, which facilitates the preparation of annual accounts so that they faithfully reflect the financial situation of the company. The PGC applies to all entities, regardless of their size or activity, although there are adapted versions, such as the PGC for SMEs, which simplify some accounting processes for these organisations.

The PGC is prepared and updated by the Institute of Accounting and Audit of Accounts (ICAC), an organisation linked to the Ministry of Economy and Finance. Through the PGC, the accounting principles, valuation criteria and presentation of the annual accounts, among other aspects, are established. In summary, the PGC not only seeks to standardize accounting procedures, but also guarantee transparency and compliance with current regulations.

What is the chart of accounts of the General Accounting Plan of a company?

The chart of accounts of the general accounting plan for SMEs is an indispensable tool in the accounting of any company. It consists of a structured list of all the accounts that a company uses to record its economic operations. This table allows you to order and classify all the elements that make up the company's assets as follows:

• Balance sheet accounts: assets, liabilities and net worth.
• Income statements: income and expenses.

What is the purpose of the chart of accounts of the General Accounting Plan in SMEs?

In the SMEs, the chart of accounts of the General Accounting Plan It has various functions:

• Organization of accounting information: Facilitates the grouping of the different accounting items, which allows a clearer and more efficient record of operations.
• Uniformity: By following the chart of accounts proposed by the PGC, it is ensured that the SME's accounting is consistent with national standards, which facilitates comparison between companies.
• Control and analysis: Allows detailed monitoring of the company's financial status. This helps identify problems or opportunities for improvement in financial management.
• Facilitation in the preparation of annual accounts: The use of a well-structured chart of accounts simplifies the process of preparing and presenting the annual accounts to the Commercial Registry
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In summary, the PGC accounting table for SMEs is essential to guarantee that the company can keep orderly accounting in accordance with legal regulations, which is key both for internal management and for complying with its tax and commercial obligations.

What does the chart of accounts of a company's General Accounting Plan include?

The account chart The PGC is divided into several groups that classify the different accounting accounts according to their nature. In the case of PGC for SMEs, the chart of accounts includes the following main groups:

1. Core Financing (Group 1): This includes accounts related to share capital, reserves, results from previous years, long-term debts and subsidies received by the company. This group is responsible for reflecting the entity's long-term financing structure.
2. Immobilized (Group 2): Includes the assets and rights that the company maintains in the long term, such as tangible assets (machinery, buildings) and intangible assets (patents, brands). Long-term financial investments are also included.
3. Stocks (Group 3): This group contains the accounts related to goods acquired or produced by the company and destined for sale or transformation, such as raw materials, products in progress and finished products.
4. Creditors and debtors for commercial operations (Group 4): Accounts related to suppliers, clients, creditors and debtors for commercial operations are recorded here, as well as accounts with public administrations (such as the Treasury or Social Security).
5. Financial accounts (Group 5): This group includes accounts related to cash, cash equivalents, and short-term financial investments, such as loans and bank deposits.
6. Purchases and expenses (Group 6): All expense items are recorded here, such as stock purchases, personnel expenses, external services (rents, supplies) and taxes.
7. Sales and income (Group 7): This group includes sales of products and services, as well as other income derived from business activity, such as subsidies, financial income or extraordinary income.

Each of these accounts can be subdivided into subgroups and more specific accounts, which allows a high level of detail in the accounting record. SMEs can customize these subaccounts to adapt them to their particular needs, although they must maintain the general structure proposed by the PGC.

How is the chart of accounts of the General Accounting Plan prepared in an SME?

The process of making the chart of accounts in an SME should be based on the guidelines established by the PGC, but it must also take into account the particularities and specific needs of the company. Below, we describe the key steps for its preparation:

1. Analysis of the company's accounting needs: The first step is to identify the economic activities carried out by the SME and the types of transactions that will be recorded. This includes analyzing the cycle of purchases, sales, financing and any other relevant operation.
2. PGC Standard Account Selection: Once you have a clear overview of your accounting needs, you proceed to select the accounts that best suit the company. Although the PGC provides a general chart of accounts, not all accounts are relevant to all SMEs, so some may be omitted.
3. Subaccount Customization: SMEs have the freedom to create subaccounts that best fit their operations. For example, within the customer account (account 430), specific subaccounts can be created for each major customer.
4. Account Coding: The chart of accounts is organized using a numerical coding system. Groups are coded with one digit (1 to 7 for SMEs), subgroups with two digits, and individual accounts with three digits. In some cases, more digits can be added for custom subaccounts.
5. Initial registration and periodic adjustment: Once the table of accounts has been prepared, the transactions must be recorded according to the corresponding accounts. In addition, the chart of accounts must be reviewed periodically to ensure that it remains appropriate to the needs of the company and adjusts to possible regulatory or business changes.

In conclusion, the table of accounts of the General Accounting Plan It is a fundamental tool for the correct accounting management of a SME. Its preparation and proper use allow for more efficient control of the financial situation and ensure compliance with accounting regulations in Spain. Although it is not mandatory to follow it to the letter, it is highly recommended to adjust to its structure to guarantee clarity and transparency in accounting operations.

Do you need help preparing the PGC accounts table in your company? Leave it in the hands of Afianza!, a great team of advisors who will be in charge of all the steps of the production process, ensuring compliance with current regulations in Spain.