Administration
Not the most fun job: accounting and updating administration. Still, orderly administration is indispensable. The Tax Administration has no specific requirements for an administration, as long as it satisfies the following: Keep proper records in a way that can give auditing tax people quick insight. You must keep your records for 7 years, both paper and electronic. Therefore, it is important to keep your records from day one. What are the components of business records? We give them to you.
1. General Ledger
A general ledger consists of a number of "collective folders" in which you group income and expenses. Think of products delivered, bank accounts, car expenses, telephone expenses, VAT received, VAT paid, etc. All these items are given a number, called a general ledger account number. The general ledger is actually the shell around the entire accounting system.
2. Debtor and creditor administration
In the accounts receivable and accounts payable, customer and supplier invoices are itemized with amounts, outstanding items, etc. You get this data from your purchase and sales records.
3. Inventory management
Do you work with the purchase and sale of goods? Then at least once a year, you need to take stock and record the inventory and its value in your bookkeeping.
4. Purchase and sales administration
Purchase and sales accounting consists of entering your sales invoices and purchase invoices into general ledger accounts.
5. Processing expenses in accounting
Did you pay for a lunch date with a client or buy a new laptop? All business expenses you incur are recorded in your accounting records. This includes car expenses, travel expenses, etc. Expenses are deductible from your profit so you pay less tax and can reclaim VAT on purchases.
6. VAT declaration
As a VAT entrepreneur, you must file a VAT return. In your tax return, you report the VAT you have charged to customers, and the VAT you can deduct. Most freelancers do this once a quarter. Sometimes you have to file your tax return monthly or annually. This is decided by the Tax Administration and depends on the average amount to be remitted.