Accounting setup: accounts, VAT, banks and journal entries

Availability: Accounting, tax plans and automatic journal entries depend on the features enabled in your account and your role’s permissions. If an option does not appear, contact Aragro support.

Aragro connects the field with accounting: when you complete a work order, a purchase, an expense order or a payroll, it can create the journal entry automatically. For that to happen, and for financial reports not to come out empty, the accounting setup needs to be ready first.

If your financial reports are empty

It’s almost always because the accounting setup isn’t complete. Without assigned accounts, operations don’t create journal entries, and the journal, balance sheet and income statement have nothing to show. Follow the steps below.

1. Review the chart of accounts

Aragro comes with a base chart. Adapt it to your accounting: add, rename or deactivate accounts so it matches the chart your accountant uses.

Also create one ledger account for each bank account you will use.

2. Map categories to accounts

Each category (expense categories, product categories, payroll components) points to a ledger account. If an expense lands in the wrong account (for example, Stationery under Repairs and maintenance), the mapping is the problem: fix that category’s account and later records will be right.

• Expenses: in the expense categories. See Expenses.
• Payroll: assign an account to each component (salary, bonus, social security, income tax…) in the payroll structure. When payroll is completed, Aragro posts the entry and splits the cost across cost centers. See Run payroll and print pay stubs.

3. Set up VAT with tax plans

Tax plans calculate VAT on purchases and expenses. What matters is that the plan matches how you enter the amount:

• If you enter the cost before VAT (recommended): use a formula such as itemSubtotal * 0.12. Expense reports show the real cost and VAT stays separate.
• If you enter the invoice total with VAT included: the plan must split the net amount (total / 1.12) and the VAT. Otherwise, your expense reports are inflated by VAT.

Always check a test purchase: the Grand total must equal the invoice total. More in Taxes and the Tax plans FAQ.

4. Link the banks

To record payments and issue checks:

1. Create each bank’s ledger account (step 1).
2. In the company settings, link each physical bank account to its ledger account.

If you can’t generate checks, one of these two steps is almost always missing. See Invoice payments.

5. Review automatic journal entries

• Entries are created when each document is completed.
• You can edit a generated entry (for example, its date or account) when an expense must be recorded in another month or account.
• If an accounting period is closed, Aragro rejects operations that affect it. Close it only once that month has been reviewed.

Checklist

• Chart of accounts reviewed with your accountant
• One ledger account per bank, linked in the company settings
• Expense and product categories mapped to their accounts
• Accounts assigned to each payroll component
• Tax plan tested with a real invoice
• Cost centers defined

If you have a question this guide does not answer, contact us in the Aragro chat or write to [email protected].