How do I create an account?

Accounting, what should I keep?

The tax authorities oblige you to keep certain documents and digital administration. You must be able to prove that you have earned what you earn according to your tax return. Consider the following documents:

  • Invoices sent and received;
  • contracts;
  • order confirmations;
  • quotes;
  • Account statement;
  • correspondence with customers;
  • time management;
  • cash administration;
  • private use of goods and services for VAT purposes;
  • agendas.

This does not have to be on paper, accounting can also take place online. You must keep the data for at least 7 years. You even have to store real estate data for 10 years.

If you have staff, there is a whole extra administration involved. Think of employment contracts, payroll administration and a staff directory with minutes of performance appraisals and appraisal interviews. This is also called your personnel administration.

Why should I keep this?

The burden of proof for your income lies with you. If you can not prove what you have earned and spent, the tax authorities will remedy it. This is usually not beneficial. You can not claim deductions for entrepreneurs without administration. The bank sometimes also asks for your numbers. For example, when applying for funding.

But: you do not only keep accounts for the bank and the tax authorities. Your numbers also give you insight into how the business is doing, when you can expect money and need to send reminders, what you spend (too much) money on, and how you can save. Thanks to your administration, you can make adjustments as soon as things go wrong.

How do I organize my accounts?

A few tips for creating good accounts:

General ledger and balance

All expenses and income must be booked as debit and credit. This provides an overview of the financial flows of your business.

Start with a balance. To the left you put the assets, in other words all your belongings. This also includes outstanding loans and receivables. To the right you put the liabilities, all your debts and payment obligations, including for example depreciation, maintenance costs and deductible for damage. The general ledger gives you an overview of your finances.

General ledger

Keep track of all your income and business expenses in a cash book (with VAT specification). This is sometimes also possible with online banking. If you have inventories, you must also keep specific accounts for this.

Income and loss account

At the end of the calendar year, you should be able to make an income statement, also known as an income statement. Here you enter all your income and expenses, supplemented by depreciation, future costs, outstanding invoices and unpaid suppliers.

  • The balance sheet and income statement together with the explanatory notes constitute the annual accounts.

How can I keep accounts?

Everything is possible on paper. But it is quite old-fashioned, space-consuming and time-consuming and not environmentally friendly. Digital is easier. With a reasonably manageable company, you can easily manage with a few overviews in Excel (income, expenses, hours, received and paid VAT) and a few well-organized folders on your computer. You then need to scan or photograph business expense receipts and email them to yourself. A separate bank account and a business email address do the rest.

Online accounting

If you need to process many transactions, it is more convenient to install an (online) accounting program or app. This takes a lot of work out of your hands. With these programs you can automatically send an invoice, you have an overview of when your customers have to pay and you can often quickly book a few hours, a new customer or a new task. Thanks to such a program, your accounts automatically meet the legal requirements.

The independent comparison site Boekenreview.nl is most enthusiastic about e-accounting, Acumulus, Fisc Book and MoneyMonk. Gnu Cash is a great free accounting software. Moneybird is useful for creating and maintaining invoices, but you can not file tax returns with this program. Davilex online is user-friendly and has a good support department. ZZP Nederland also offers a special accounting program to its members.

Please note: do you file an automatic tax return from your accounting program? This must be done in accordance with Standard Business Reporting (SBR). Make sure your software is ready for this.

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