Administration and bookkeeping for businesses

Good bookkeeping provides insight into your income and expenditure and helps you make business decisions. And as an entrepreneur, you are required to keep up-to-date records. You will need these for your tax returns.

What to include in your business records

The Netherlands Tax Administration (Belastingdienst) has rules on which records you must keep. You must at least keep these records:

• invoices: received invoices and copies of outgoing invoices
• cash flow records
• statements for your business bank account
• contracts with clients and suppliers
• time-tracking records
• travel records for car and/or public transport,
• tax returns, both VAT and income tax, and correspondence with the Tax Adminsitration
• model agreements, if you use any (DBA act)
• business correspondence such as letters, emails, quotations, contracts, brochures, and messages

How do you set up a good bookkeeping system?

Follow this step-by-step guide to set up a good bookkeeping system:

Step 1: Open a business bank account

A business bank account allows you to keep your business and personal expenses separate. A business bank account isn’t mandatory, but it does give you a clear overview. This makes your bookkeeping easier.

Step 2: Choose how you want to manage your accounts

Choose an accounting system that suits you. For example, using Excel or an online accounting application. You can also choose to work with a bookkeeper or accountant.

Step 3: Store your records digitally straight away

You can store invoices, receipts and contracts digitally. This makes it less likely that you will lose any data and means you have everything in one place.

Make sure all the information in the digital document is clearly legible. The files must not be altered. If you receive an invoice digitally, for example as a PDF, save it as a PDF.

Step 4: Set aside a fixed time for your administration

Update your records at a fixed time. This prevents the work from piling up.

Step 5: Check your records

To avoid mistakes, it’s important to check your records regularly. For example, check whether all invoices have been paid and whether you have filed your receipts correctly. This way, you will spot any mistakes in good time and avoid problems with your tax return. You can also ask an accountant or bookkeeper to review your records.

How long must you keep your records?

You must keep the basic data of your business administration for 7 years. This includes, for example, records relating to customers and suppliers, purchase and sales data, income and expenditure, stock records, and payroll records.

You must keep records relating to business premises, land, and rights to immovable property for at least 10 years.

Do you store the data digitally? Then you must make sure that you can access the programmes and files during the retention period. That also means keeping access to (potentially paid) programmes that you do not use anymore. 

Outsource your accounting or do it yourself?

You can do your financial administration yourself or outsource it.  Both options have pros and cons.

Handbook on Entrepreneurship

Use the Tax Administration's Handboek Ondernemen (Entrepreneurship Manual, pdf in Dutch) as a reference. The handbook explains your tax rights and obligations and the Tax Administration's requirements for your business records. For basic English information on taxes, consult this page.