Accounting in plain words

Accounting records everything that happens to a company’s money and assets. In DameDoklad, most entries create themselves from documents.

Three regimes

You set the regime per company.

Check with your accountant or tax advisor which regime the law requires of you.

Double-entry accounting

Each transaction is written to two accounts: debit (MD) and credit (D). Both sides are equal, which is why the books always “balance”.

Example: you issue an invoice for CZK 12,100 including 21% VAT.

When the customer pays: debit 221 Bank accounts, credit 311 Customers, CZK 12,100.

• The chart of accounts is the list of accounts. You get a pre-filled standard chart and can extend it with analytics. Account 569 Shortages and damage on financial assets, where a cash shortage from the till closing goes, is not tax deductible (§ 25(1)(n) of the Income Tax Act). Book a shortage covered by compensation, or caused by an unknown perpetrator as confirmed by the police, to a deductible analytic account.
• The journal orders entries by date.
• The general ledger orders them by account.
• The trial balance shows turnovers and balances of all accounts, and debit and credit totals must agree.
• A posting template is a rule for how a type of document posts, so you don’t have to pick accounts every time.

Tax records

With tax records, you record items when paid. The cash book tracks income and expenses and separates what is tax-relevant. The receivables and payables book shows who owes you and whom you owe.

Corrections and closing

A posted entry is never edited in DameDoklad. You fix a mistake with a counter-entry, and the history stays complete.

Closing a period stops further entries in that month or year. After the year-end close, a new period opens with opening balances. The outputs are the balance sheet (what the company owns and how it is financed) and the income statement (revenue, costs and the result).

A medium or large entity also has the cash flow statement under More statements, by the indirect method. What the company owes a supplier for fixed assets is investing, so row B.1 shows an acquisition once you pay for it (§ 41(3) of Decree 500/2002). On an invoice with a service or VAT besides the asset, only the asset’s share goes to investing. A payable carried in as an opening balance without its document, or typed by hand in the journal, cannot be told apart this way and stays operating.

The date lock is on the Periods tab. It locks accounting, stock, orders, assets, VAT, and claims with service through a chosen day, for everyone but the owner and accountant, or for everyone. The VAT lock also guards items on rows 45 to 61 of the return and cash documents with VAT. You can lock a single document the same way, and it then cannot be paid or paired from the bank or the till.

Allowances

Allowances are in the More menu. A wizard offers overdue receivables that can take a statutory allowance under Act 593/1992 (over 18 months up to 50 %, over 30 months up to 100 %, small claims up to 50,000 CZK after 12 months, a debtor in insolvency). It is a tax cost, posted to 558.

An accounting allowance to a receivable, asset or stock comes from a form. It posts to 559, is not a tax cost, and the income tax return adds it back and takes it off when released. Each item shows its balance, and settling reduces it.

Limitation is watched in the table under the allowances: three years from the due date, unless you record an acknowledged debt, a decision, proceedings or an agreed period. What is about to be time-barred appears in To do. A time-barred receivable cannot take a statutory allowance, and an existing one should be cancelled.

A wizard handles writing off a receivable: you pick the ground under § 24(2)(y) of the Income Tax Act, see the deductible and non-deductible parts, and on confirming it posts debit 546 / credit 311, closes the document and settles its allowances. With no ground, only the part covered by a statutory allowance is deductible. VAT does not change: the § 46 correction is under VAT and taxes. An accountant confirms the ground matches the documents.

Open items and pairing symbols

Saldo shows what stays open on an account by pairing symbol. Turn it on for an account in the Chart of accounts, and fill in the symbol on the internal document’s line, on the detail of an invoice or other document under Payments, on the document’s row in Saldo, or when booking a bank movement with no document. Posted entries do not change. A line with no symbol pairs by document number. A foreign balance is kept per currency.

Analysis

The Analysis tab computes financial ratios by year: liquidity, profitability, activity and debt, each with its formula. No law defines them, so the formulas are the textbook ones. Documents due more than a year after the year end do not count as short-term. You can build your own analysis from rows such as Receivables = Z(311), and in tax records and single-entry from the cash book, such as Income = P() or Services = V(B04). Ratios and analyses download as PDF. Saved reports now also read the journal and all documents together.

Moving from tax records to accounting

Tax records have a Move to accounting wizard in the More menu. On the first day of a period it works out opening balances from the cash book, open documents, assets and stock, puts the difference on account 491, and prepares the tax base adjustment under Annex 3 of the Income Tax Act. Inventories and receivables can go in at once, or over 9 periods (§ 23(14)). It runs once the period has started and while the period has no cash book rows. This is not an import from another program: see Migrating from POHODA. Each bank account gets its own line, and stock goes to 132, 112 or 123 by the kind of item. From single-entry books the wizard moves to the chart of decree 504/2002 Coll. with the difference on 901 and no spreading over 9 periods.

Non-profit organisations

An association, foundation, institute or owners’ association keeping double entry switches the kind of accounting entity under Settings, while it has no entries. It gets the chart, balance sheet and income statement of Decree 504/2002, with main and economic activity, and a close through accounts 961, 962 and 963.

More statements offers the notes under § 30 of the decree, with the result by activity, personnel costs, subsidies and gifts from the books, and the rest for you to fill in. The decree has no cash flow or equity overview and the law does not ask a non-profit for them, so you build them by choice.

Under Taxes, income tax switch on the publicly beneficial taxpayer. The app reads the activities from the books: subsidies and a non-business activity with costs above its income fall outside the tax and their costs go to row 40, while economic activity is taxed. It says when you need not file (§ 38mb) and works out the reduction of the base under § 20(7). An accountant must confirm how shared costs are split.

Contributory organisations

Schools, libraries, and other contributory organisations follow Decree 410/2009. In Settings, Accounting choose the kind of accounting unit while the books are empty. You get the chart of Annex 7, a balance sheet and income statement by Annexes 1 and 2 with main and economic activity, and a close through 491, 492, and 493. Bank goes to 241, cash to 261.

On the Reports to the Ministry tab you set the founder and find:

• Notes by Annex 5 of the decree, with off-balance accounts, transfers, funds, and the breakdown of buildings and land.
• Transfers: advance, settlement, returning a surplus, and releasing account 403, under ČÚS 703. A project carries the purpose code, so a cost on an invoice counts towards it too.
• Funds: creation and use under ČÚS 704. The amount lands on its row of the notes.
• Approval: the decision of the founder or council and a protocol PDF under Decree 220/2013.
• ROZP 1-01 SPO for state organisations. FIN 2-04 U was abolished, and organisations of municipalities and regions file no financial statement.
• PAP in full, as a contributory organisation files it. Parts I to III and the breakdown by partner (X, XI, XV, XVI) come from the books: the partner is taken from the entry, the transfer or the account’s setting, such as the bank on account 241. You enter the change types of parts IV to VIII, and with them the partners for parts XII and XIII. The form’s items can be analytic accounts with the same number, or you assign an account to an item. Part XIV is only for the state and territorial units.
• Cash receipts and expenditure (C007) for state organisations, from the entries that moved money. What the books do not say you move between rows, and E. still ties to the balance sheet.
• ZAM 1-04 U for state organisations with regulated employment. You enter the numbers per quarter.
• Checks from CSÚIS control links no. 70, while there is still time to fix a statement.

For each of them you can download XML for CSÚIS by XSD package no. 57 of the State Treasury. The responsible person uploads the file on the CSÚIS portal; the app sends nothing, and it has not been tried on the portal. The cash flow and equity overviews are no longer drawn up or filed from 1 January 2026 (Act 316/2025), so their XML is for 2025 and earlier only. An accountant must confirm the postings and rows.

Cost centers, activities and projects

You can tag documents with a cost center, activity or project, and then see what each part of the business earns.

Foreign currencies

A document in a foreign currency converts at the ČNB rate. If the rate changes between issuing and payment, an exchange difference arises and posts as income or a cost.