Blog: From shoebox to structure: this is how to ensure smart accounting

Many entrepreneurs quickly lose track of their administration. A good structure will save you time, money and frustration. And you are ahead of all kinds of surprises, such as the amount you have to pay on your VAT return or an invoice whose payment deadline has expired.

Most entrepreneurs are in business because they have a creative idea or because they don't want to be employed. Administration is something they get added to, a task that takes time and is complicated. Especially for start-ups, combined with tax returns, it can be stressful. Then it can be nice to pretend it doesn't exist. If you make the effort to look into it, you will find that keeping your records up-to-date actually gives you peace of mind. Fortunately, there's plenty of handy help and handy apps and tools to make life easy.

Why is good administration important?

Good records are crucial to the financial health of your business. It not only gives you insight into where you stand, but also helps you make better decisions and prevents problems with the tax authorities. This blog gives you practical tips & tricks to organise your administration easily and efficiently.

Why up-to-date records are indispensable

You are legally obliged to keep records and keep track of your hours (for the hours criterion). You can do this on paper or in digital form. Based on your records, you file your tax return and sales tax return. If the administration is incomplete, for instance because receipts or the hours records are missing, the tax authorities may make a recalculation. But besides an obligation, well-organised administration is above all an indispensable tool that helps you to: a) become a better entrepreneur, and b) be smarter with your money. An up-to-date administration allows you to steer by figures and avoid surprises. It ensures:

Understanding which clients have yet to pay their invoice and how much money is outstanding in unpaid bills;
Overview of how much you need to set aside for sales tax returns;
Understanding your accumulated buffer and the money still needed for new investments;
Control your cash flow and spending.

This will help you keep smart records

1. Switch to an (online) accounting programme

Although Excel seems handy, an accounting program offers many additional advantages. You can find important information clearly in the dashboard and you are less likely to make mistakes. Processes such as invoicing and VAT calculations are automated. Most accounting packages are "smart", so incoming invoices are immediately entered in the right place and the sales tax return is never stressful again.

2. Look for a smart accountant

A good accountant, for example with the NOAB seal of approval, helps you set up your accounts and looks with you. He or she sees financial and tax things that you are often completely unaware of and thus helps you become a better entrepreneur. And if you have been a client for some time and are building a relationship, your accountant knows what your motivations and ambitions are. As a sounding board, he or she can help you stay on course. And asks critical questions at the right moments - such as "where do you want to be in five years?" -and gives you the tools you need to achieve your goals.

3. Send an invoice with payment link

Don't wait until the end of the month to invoice. The sooner you send invoices, the sooner the money will be in your account. This improves your cash flow, so you have less financial stress.

Make sure you have all the information for prompt payment, such as any order number, your client's name and the correct e-mail address of your client's administration.
Digital invoices are paid faster than paper invoices. If you want to be paid extra quickly, an iDEAL payment link is a handy addition. This allows you to let customers pay your invoice via WhatsApp, SMS, mail or iDEAL QR code.
Link invoicing to a fixed administration moment, where you also enter your purchase invoices and prepare them for payment. It not only prevents you from being constantly behind the times, but ensures that you can see how your cash flow is developing with a glance at the dashboard.

4. Keep track of your hours

Not only your client, but also the Tax Authorities expect you to submit a timesheet. To be eligible for the self-employed deduction, you must meet the hours criterion. There are plenty of (free) apps to keep track of your hours. It is often integrated as a plugin in your accounting programme.

In short, keeping your records is less complicated and stressful than you think. But then you need to organise it smartly. Your NOAB advisor or accountant will be happy to help you with it.

Source: deZZP.nl