How do I set up the administration for my company? Register with the Chamber of Commerce? Do I need a bookkeeper? These are probably all questions you have as a starting entrepreneur. In this article, we tell you everything you need to know about SME administration.
- Register with the Chamber of Commerce
- Setting up SME administration
- Do your own bookkeeping or outsource it
- Digital or online accounting?
- Administration programs
Register with the Chamber of Commerce
Starting any business begins with registering with the Chamber of Commerce (KvK). Depending on the type of registration with the KvK, a VAT obligation may arise. If a VAT obligation arises, you will automatically receive a VAT number from the Tax and Customs Administration. For everyone, an administrative obligation arises, involving various mandatory components and a statutory retention period.
Setting up SME administration
Setting up an administration for a freelancer, self-employed professional, or SME is broadly the same. SME administration consists of bookkeeping , and depending on the business structure, this can be supplemented with other administrative services, such as mileage tracking , timekeeping, and/or payroll.
The accounting consists of a number of different mandatory components.
- General ledger administration
This is where you record all financial transactions. For example, received purchase invoices or payments. The general ledger provides insight into the costs and revenues of your business. - Accounts receivable and accounts payable administration
In this, you keep track of all outstanding invoices from your customers and suppliers. - Inventory management
If you buy and sell goods, you keep track of your inventory and its value in this. - Purchasing and sales administration
In this, you keep track of all purchase and sales invoices.
In addition to bookkeeping, SME administration can be supplemented with, among other things, the following components:
- Payroll Administration
In this section, you keep track of all data relating to the calculation of your staff's salaries. Naturally, this section does not apply to the accounting of a sole proprietorship without employees. - Time registration
When managing administration where you must meet the Tax and Customs Administration's hour criterion to qualify for tax benefits, it is important to maintain accurate time records in which you record the number of hours spent on direct client assignments, as well as on bookkeeping and travel time. - Trip registration
If you have a company car and choose not to pay tax on the benefit-in-kind, you may drive the company car privately for a maximum of 500 kilometers per year and must keep a complete mileage log. You can keep records of this in Excel or use a trip registration system.
Do your own bookkeeping or outsource it
You can handle the SME administration and bookkeeping entirely in-house, or you can choose to outsource this to a bookkeeper or administration office. Bookkeeping without payroll administration is generally much simpler than the more complex administration for a private limited company (BV). Depending on your own financial knowledge, you can make agreements with a bookkeeper or administration office regarding which tasks you will perform yourself and which part of the SME administration you wish to outsource.
Digital or online accounting?
In practice, setting up SME administration and bookkeeping is not subject to rules. You can maintain records in Excel , but you can also use online bookkeeping , digital bookkeeping , or keep track of everything with pen and paper. Or a combination of these, such as online bookkeeping, but timekeeping in Excel and mileage records via a mileage registration system. However, the Tax and Customs Administration does require that the administration and bookkeeping be verifiable and comply with the statutory retention period.
Administration programs
If you choose to work with administration software for SME administration, you can choose between a cloud solution (online bookkeeping) or a locally installed program (digital bookkeeping). The advantage of online bookkeeping is that the administration is accessible from any location. The disadvantage is that you always need internet access to access your SME administration and that it is sometimes a bit more difficult to create a backup.
Below, we provide some examples of administration programs you can use for your bookkeeping. Of course, there are many more providers of administration software.
Exact Online
The financial software Exact Online is the online version of Exact's accounting program. Because it is online software, you can maintain the SME administration yourself and easily make it available to an accountant or bookkeeper.
Inform
Informer's accounting package is suitable for every entrepreneur. The advantages of this online accounting program are speed, simplicity, and clarity. Informer has multiple integrations with other software packages. It is also possible to send the VAT return directly to the Tax and Customs Administration. And with the integration via TrackJack, you can easily connect the mileage registration to your accounting.
MoneyMonk
MoneyMonk's online accounting package is clearly designed and supports virtually all Dutch banks. This allows payments to be directly linked to outstanding invoices.
Visma
Visma eAccounting is suitable for every sector of the SME. With the smart software, administration is fully automated and nothing needs to be done manually. With the accompanying free app, you can view the SME administration from any location.
Tip: With the TrackJack PRO Fiscaal , you automatically register all your trips, tax-approved and recognized by the Tax Authorities. View the PRO Fiscaal in our webshop →
