Configure deadlines, type, and regime of VAT and payrolls
When you set a goal in the Targets view, a corresponding projection is automatically created in the Cashflow view. This automation process facilitates cash management by reflecting the financial targets you set.
Holded uses a number of key parameters to perform this automatic calculation, based on:
VAT regime: monthly or quarterly.
Payment and collection terms: defined according to your policies.
VAT rate for purchases.
VAT on sales.
Personal Income Tax and Social Security (SS) %: applied to employee payrolls.
Personal income tax regime: monthly or quarterly.
These parameters directly affect Cashflow goals and are fully customizable. With these variables, Holded is not only able to predict when to expect to collect or pay according to income and expense targets, but can also estimate the amount of taxes (VAT, IRPF) and Social Security, as well as the exact timing of these payments.
You can configure income, expenses and payroll parameters by following these steps:
Go to Analytics > Goals or Treasury > Cashflow.
Go to the three dots (⋮) button at the top right and click "Settings".
Go to the “Billing” tab to define the payment and collection conditions for your business, as well as the type and VAT regime that Holded will take into account.
☝🏼 These conditions will apply to all accounts 6 and 7, except account 640 wages and salaries, to which the settings in the “Payroll” section will apply.
Choose, using the drop-down menus, for the income accounts:
Collection period: same day of billing, 7 days, 14 days, 1 month, 2 months.
Sales VAT: VAT not defined, VAT 21%, VAT 10%, VAT 7.5%, VAT 5%, VAT 4%, VAT 2%, VAT 0%.
Now do the same for the expense accounts:
Payment term: same day of billing, 7 days, 14 days, 1 month, 2 months.
VAT on purchases: VAT not defined, VAT 21%, VAT 10%, VAT 7.5%, VAT 5%, VAT 4%, VAT 2%, VAT 0%.
Next, define the VAT regime (monthly or quarterly).
Go now to the “Payroll” tab, to define the conditions that will be applied to calculate your payroll, IRPF and SS targets.
☝🏼 This setting applies to the targets defined in the Targets view for 640 accounts, where you must have entered the values in the net of expense.
Configure the personal income tax using the drop-down menus: the filing period, its percentage, and the accounting account.
In case you have employees with different income tax brackets, you will have to establish an average income tax percentage, since at the moment it is not possible to adjust either by accounting account or to create different percentages. This IRPF will be used to calculate what you will have to pay in IRPF taxes.
Configure, finally, the percentage and the accounting account for social security (total social security, not only for employees). You can calculate it previously based on your history.
Click "Save".
Configure your goals and cashflow by accounting account
If you want a certain accounting account to behave differently, or you prefer to give it a different configuration than the general one, you can do it from the three-point menu (⋮) > Configuration > Invoicing, like this:
Set the general settings for your plan, defined in steps 1 to 4 of the previous section, then click "Define by accounting account".
Use the drop-down menus to select a specific accounting account, maturity date, and VAT rate.
☝🏼 Use the "+ Add account" button to add additional lines, or the trash button to delete them.
Click on the arrow, in top left, to return to the general settings; or on the "X", in the upper right corner, to finalize the stage configuration. The changes will be saved automatically.
Finally, keep in mind that:
The specific configuration of a ledger account will take priority over the general configuration.
Only income and expense-type accounting accounts (7 and 6) may have a configuration, both general and specific.
Income or expense accounts not specifically configured will behave according to the general configuration.