Administration

You are obliged by law to record any and all financial implications for your business in a systematic administration. It is also useful to keep a proper financial administration as this enables you to have a wealth of business information and insight into how your company is progressing.

Document retention

Books and documents which are important for corporation tax, turnover tax and income tax purposes have to be maintained for seven years as per the Dutch Civil Code and the Algemene Wet inzake Rijksbelastingen.

What to Keep?

All information which you record on paper or electronically such as: cashbook administration and receipts, sales and purchases book, invoices received and copies of invoices sent, bank statements, contracts, agreements and other such documents, software and databases.

BTW (turnover tax)

Your records must show how much turnover tax you have to pay to the tax authorities. Records must include the following:

• invoices which you issue
• invoices you have to pay
• expenses
• income
• private use of goods and services

Invoices

Your invoices should be numbered progressively in a series and should state the following:

• invoice date and number
  
• name and address of the supplier or customer (including turnover tax identification number when trading with another EU country)
• description of goods delivered or service provided
• prices exclusive of turnover tax
• turnover tax amounts broken down by turnover tax rates

Bookkeeping — Seven Golden Rules

• Rule 1 - Keep separate bank accounts for business and private purposes.

• Rule 2 - Bank all money received intact.
• Rule 3 - Check all suppliers’ invoices before paying and ensure goods have been received.
• Rule 4 - Raise an invoice promptly for all goods sold on credit and for all work performed in which you are not paid immediately.
• Rule 5 - Keep proper wage records.
• Rule 6 - Have a business plan.
• Rule 7 - Retain all records and supply the following to your accountant at the end of the financial year:
  - cheque payment records
  - finance company agreements
  - bank deposit book
  - vehicle log book
  - bank statements

These basic accounting rules are suitable for a business that does not have a full-time accountant or bookkeeper.