How do you choose an online accounting application?

In this article, you will read:

• Why is bookkeeping important?
• What is the added value of bookkeeping software?
• Are there alternatives to using software?
• What should you look out for when choosing bookkeeping software?
• Peppol and electronic invoicing
• Can you switch providers?

Why is bookkeeping important?

Accounting is important because it provides insight into your business’s finances. For example, you can see whether you are making a profit or a loss. This helps you make better decisions.

Also, as an entrepreneur, you are obliged to keep your business records in order. The Netherlands Tax Administration may ask you to show them your records. If these are not correct or if you have made mistakes, this could have consequences, such as a fine (in Dutch).

And good bookkeeping is important when applying for funding. 

What is the added value of accounting software?

Accounting software has several advantages:

• It helps you keep your records up to date quickly and clearly.
• It provides insight into your income, expenditure, and results.
• It can help you comply with the legal requirements for your business records.
• It reduces the risk of errors, for example in calculations.
• It can automate tasks, such as creating invoices.
• It makes it easier to work with an accountant.

Are there alternatives to using software?

As an entrepreneur, you can also manage your finances yourself. For example, on paper or in a spreadsheet. This often takes more time and increases the risk of errors.

You can also have your accounts done (in part) by an accountant or bookkeeper. You outsource the work, but often have less direct insight into your figures.

What should you look out for when choosing an accounting programme?

This depends on your situation and needs. Many entrepreneurs opt for an online accounting programme. This gives you access to your data from anywhere, for example via your phone, laptop, or tablet.

When choosing an accounting programme, you might want to consider the following points:

Choose a programme that suits your business

• What features do you need for your situation? Think about invoicing, help with preparing a VAT return, and your income tax return.
• Will the programme still suit your needs as your business grows and your accounts become more complex?

Choose a user-friendly programme

• A well-organised and clear programme will help you, even if you have little accounting knowledge.
• Check whether the programme offers support, such as explanatory videos, help functions or a customer service team.

Costs and flexibility

• The costs of online accounting programmes vary. They usually range from 8 to 100 euros per month. See what fits your budget.
• Some programmes allow you to create a free trial account. This lets you test whether the programme suits your needs. Make sure this does not automatically convert into a paid account.

Collaboration and integration

• Do you manage your accounts together with your partner or your accountant? If so, it is useful for them to have access to your data.
• Check whether you can link the programme to your bank or the Tax Administration.

Secure and reliable

• Your accounts contain important data. Pay attention to how the programme stores and secures this data.
• Check that regular backups are made.

Do you operate internationally?

• Do you do business abroad? If so, you have additional administrative obligations.
• You may also have to deal with different currencies and international VAT processing. Choose a programme that suits these needs.

Peppol and electronic invoicing

Peppol is a secure, international network for exchanging electronic messages, such as invoices. Because users’ identities are verified, the risk of fraud, such as phantom invoices, is reduced.

Do you work with the government, for example? If so, sending invoices via Peppol is often mandatory. Not every programme supports this. Bear this in mind when choosing an accounting programme.

Can you switch?

Are you unsure about your choice? In practice, it’s usually possible to switch to a different accounting programme. This doesn’t have to happen on 1 January. You can switch at any time of the year. You can often transfer your records with you. How straightforward this is varies from programme to programme.