Our 5 accounting tips for an improved business start
July 7, 2021
Accounting. One of the most annoying topics for most companies, especially when it comes to the business start and the first business year as an online retailer, where many things are new and unfamiliar. But don’t worry, by now there are a lot of tools that simplify accounting and tax issues.
Together with our partner Billomat, we would like to give you the best accounting tips for a better and smoother business start.
1. Revenue surplus account vs. double-entry bookkeeping
As an entrepreneur, you have the obligation to keep books and especially to record all business transactions. A distinction is made between simple bookkeeping with an income statement at the end of the year and double-entry bookkeeping, which is much more time-consuming.
Who may use simple bookkeeping?
As an entrepreneur with a profit below the legal limit and as a small entrepreneur you can submit files in which the income and expenses can clearly be seen at the end of the year. This exempts small business owners from double-entry bookkeeping.
In addition, the simple bookkeeping for small entrepreneurs also applies. Those who run their business as a small entrepreneur have been exempted from the obligation to pay VAT due to their low turnover and are thus also exempt from the obligation to keep double-entry bookkeeping.
Who must keep double-entry bookkeeping?
Anyone who has a profit of more than € 60.000 per year or a turnover of more than € 600.000 per year is required to do double-entry bookkeeping. This type of accounting concludes with a balance sheet at the end of the year. The e-balance sheet has already been mandatory since 2014.
2. When is your bookkeeping considered as good?
Good bookkeeping means that there aren’t any gaps - and that is exactly what makes it extremely difficult for entrepreneurs. If you want to keep books on your own, you should make sure that all documents, receipts, invoices, debits and income are documented. This also means that documents should be secured in such a way that they can be viewed in the long term. This means that simple receipts on paper must be archived and filed so that they are still legible and recognizable in a few years.
Interestingly, only receipts in the form of invoices and cash receipts allow expenses to be accounted for correctly. But having the receipt is not everything, you also have to find it when you need it.
For those who have not learned double-entry bookkeeping before starting their business, its implementation in day-to-day operations will prove to be costly and complicated. If this is not your thing, you’re better off with hiring an accountant or a tax consultant. Otherwise, commercial bookkeeping can hardly be accomplished with a justifiable expenditure of time.
3. Is an accounting software worthwhile?
A professional accounting software with comprehensive functions makes proper double-entry bookkeeping much easier. Those who use a software for their double-entry bookkeeping right from the start will structure their internal bookkeeping automatically. Each business transaction only needs to be entered once with an accounting program. The transfer of the data into the accounting records then takes place automatically. Professional accounting software also carries out the necessary balancing and the annual financial statement in a time-saving manner, while reducing the susceptibility to errors.
4. Invoices: More important than you think
Well, how many times have you written an invoice that was returned by the client as incorrect? Even though invoices are usually just a simple document, their content is hugely important.
Before you write an invoice, you should first build a system. It is important that you give your invoices a sequential number. To do this, you can simply set up an Excel spreadsheet and write down the invoice numbers one by one. There is no set system for invoice numbers. What is important is that you understand your system and that the numbers are sequential numbers that also have the current year on them.
Now it’s time to move on to invoicing. The most important elements on a functioning invoice are:
- Address of the client
- Address of the contractor
- Date of invoicing
- Delivery period
- Invoice number
- Tax number of the Customer and the Contractor
- Description of the scope of delivery
- Prices, listed individually
- Tax rate
- Bank details of the client or customer
At the end of each invoice you should note any special features. For example, if you are a small business owner, the official rate should be noted. If the invoice is meant for a foreign company of the EU, it is important that you make use of the reverse charge procedure and note this especially in a sentence below your price models.
5. Deadlines are not there to be broken
The overall tax structure in most European countries is based on strict deadlines and guidelines. For you as an entrepreneur, this means that you should also urgently comply with them. If you forget a deadline at the tax office, you will quickly be asked to pay.
Our tip: Mark all important deadlines in your calendar at the beginning of the year. This way you keep a good overview and don’t miss any deadlines.
Mollie partner: Billomat
You don’t have time to take care of bookkeeping? Then take a look at the offer of our partner Billomat.
Billomat provides you with a foolproof and self-explanatory accounting software that you can use whenever and wherever you want. With Billomat you benefit from the following tools:
From estimates to payment reminders: Create all the documents that you need for your business in only 1 minute.
Receipts and expenses: Record and manage your receipts digitally via email or smartphone.
CRM for customers and products: You have access to your contacts, prices and your portfolio at any time.
Employee access and roles: Work in a team and assign roles and permissions to your employees.
Automatic payment reminder: Billomat automatically reminds your customers of overdue invoices.
Keep track of your business figures: Customize your dashboard with statistics and important KPIs.
Would you like to try out Billomat? As a user of the Mollie Boost Kit, you benefit from a discount on license plans for the next 3 months. Register now with Mollie and Billomat!