How to use the Firmify accounting module

If You've Never Done Accounting Before

Don't worry. Firmify is built for people who aren't accountants. Here's what you actually need to know:

Every month, you only do 3 things:

1. 📄 Enter your invoices — the ones you issue to clients and the ones you receive from suppliers
2. 🏦 Check your bank — upload your bank statement from online banking
3. 📊 If you're VAT-registered — by the 14th, review your VAT return (it auto-fills from your invoices)

Once a year: generate your GFO (annual financial report) with one click.

That's it. You don't deal with "debit" and "credit" — Firmify does that for you. You just enter what you sold and what you bought, and the system handles the accounting.

Common Fears (And Why They're Unnecessary)

Three Things You MUST NOT Do Alone

❌ Don't submit the GFO without an accountant's review — a mistake in the annual report can trigger a tax audit. Even if you do your own books, pay an accountant to review the GFO before submission (~€200-400 once a year).

❌ Don't submit the VAT return without checking — before the 14th, open the VAT ledgers and verify all invoices are there. A missed invoice = wrong return = potential fine.

❌ Don't skip zero declarations — even if you had no activity for the month, you must file a zero VAT return. Penalty for non-filing: up to €500.

What Firmify Accounting Does

Firmify offers a complete accounting module that lets a small business owner do their own bookkeeping — without being an accountant. The module covers:

• Chart of Accounts — pre-populated per Bulgarian National Chart of Accounts (NSC) during setup (38 accounts for EOOD, 14 for freelancers)
• Accounting Periods — annual or monthly grouping of transactions
• General Ledger (Journal) — all financial movements, auto-generated from invoices
• Sales and Purchase Invoices — auto-numbering, VAT calculation, PDF/docx export
• VAT Periods and Returns — auto-populated ledgers, ready declaration, XML for NRA
• Financial Reports — trial balance, general ledger, income statement, balance sheet, cash flow statement
• Budgets — plan vs actual with variance percentages
• Recurring Entry Templates — monthly, quarterly, yearly
• Payroll — automatic net salary and social security calculation

How It Works (Plain English)

Think of accounting as a cash register with folders. Each folder represents a type of income or expense:

Firmify already created all these folders for you during setup. When you enter an invoice, you're just saying "here's what I sold and to whom" — the system automatically:

• Puts the amount in the right folder (revenue)
• Calculates VAT and puts it in the VAT folder
• Records the date and invoice number

That's the "journal entry." You don't write it — Firmify creates it automatically.

Additionally, all transactions are grouped by year. At year-end you "close" the year — after that, nothing can be changed (this protects against accidental edits).

Step by Step: Initial Setup

Step 1: Set Up Your Accounting (Self-Setup)

Go to Accounting → Setup or /accounting/setup. Choose:

• Company type: EOOD (LLC) or Freelancer
• VAT registration:
• No VAT — below the €51,130 turnover threshold
• Standard (20%) — registered under the Bulgarian VAT Act
• Art. 97a — voluntary registration for services to EU business clients

Click "Set Up My Books". Firmify automatically creates:

• ✅ NSC chart of accounts
• ✅ Current accounting period (current year)
• ✅ Current month VAT period (if VAT-registered)
• ✅ Compliance deadline calendar (taxes, declarations, insurance)

Step 2: Add a Bank Account

Go to Accounting → Bank Accounts and add your company's IBAN. You'll need this for issuing invoices and bank imports.

💡 Tip: Add all company bank accounts — current, foreign currency, savings. During bank import, Firmify can match transactions to the right account.

Step 3: Add Counterparties

Counterparties are your clients and suppliers. Go to Accounting → Counterparties and add at least the main ones with their EIK/VAT numbers. This is needed for:

• Correct invoice data
• VAT ledgers (require the counterparty's VAT number)
• VIES declarations (for EU supplies)