A thorough administration is of great importance, both for your own business operations but also to comply with your legal obligations as an entrepreneur. Proper administration is also necessary for filing a tax return.
Administration is understood to mean all data relating to your company. The data you record electronically (for example with a computer or tablet), but also all data that you have recorded on paper (including draft notes). The administration must be geared to the nature of your company.
Start on time
Before you officially start your business, start by setting up proper records and keeping all supporting documents. Preferably set up your administration digitally, so that you can work efficiently. If you do not (yet) have the necessary knowledge to set up a good administration, consider seeking professional support in a timely manner so that you meet the requirements. You can estimate business taxes also with the calculators.
Your own business operations
By keeping a thorough administration you have a quick insight into important data of your company: such as turnover, costs and profit. This gives you insight into your results and allows you to respond quickly to developments that are important to you. Accounts payable and debtor administration is also kept on the basis of your business administration, which allows you to keep track of invoices still to be received and paid.
Based on your financial administration, you can electronically file tax returns for income tax and sales tax. With well-kept records, your tax return can proceed quickly and smoothly. Because the tax authorities must determine how much tax you owe, they can carry out an audit. The inspection by the Tax and Customs Administration must be possible within a reasonable period of time. If it turns out that the administration is not properly kept or if supporting documents have not been kept long enough, the Tax and Customs Administration will make an estimate of the operating results. This calculation may be unfavorable for you, whereby the burden of proof is reversed: you will have to prove yourself that the calculation made is incorrect.
In order to be able to make use of schemes such as the schemes for entrepreneur’s deduction, the small business scheme or transfer, it is necessary to keep proper administration.
The law obliges entrepreneurs to keep all company data, so that it is possible to check the data afterwards. This check is easily possible by keeping a thorough administration.
The rules are less strict for rental properties. If you have a work space in a rented house, you may declare the housing costs as a deductible item if you use the work space for at least 90 percent for business purposes and the work space makes up more than 10 percent of the floor area. It does not have to be an independent space.