Do it Yourself or Outsource it?
Whether you are sole proprietorship, the director of a SME or a Foundation/Association, you always need to determine the structure for your financial business records management; based on the size of your organization, you can do the administration yourself or outsource it to a bookkeeper or accountant.
Difference Accountant and Bookkeeper
An accountant usually works for larger companies, but also for SMEs and self-employed professionals (zzp’ers). An accountant is obligated to take out liability insurance and is subject to disciplinary law. If you have more than 50 employees, a turnover of €12 million euros, and €6 million euros as balance sheet total, you must hire an accountant. The SMEs and zzp’ers that are not included in this group can choose to hire an administrative office.
Keeping your Business Records
The administration involves the keeping of your business records. The keeping of your business records provides you in turn, with proper insights into your organization’s financial position and pave the way for the establishing of accurate budget plan and the development of a more controlled financial structure within the organization.
In the Netherlands, you are legally obliged to keep and to retain your financial business records. Data on your business that you record on paper or digitally are part of your business records. Examples are:
- cash administration (including draft notes) and receipts
- financial notes, such as the purchase and sales ledger
- interim check calculations
- received invoices and copies of sent invoices
- bank statements
- contracts, agreements, and other deals
- agendas and other appointment books
- correspondence
- software and data files
Retention Obligation
In the Netherlands, you are legally required to keep all the records of your administration, thus all the data of your financial business record for seven (7) to 10 years. The obligation to keep these records also applies when your business ceases trading within the specified period.
The below documents, you must keep for seven (7) years:
- debtor and creditor administration: unpaid invoices of clients and suppliers
- administration of purchases and sales: all invoices of purchases and sales
- general ledger administration: all financial transactions such as received payments
- inventory administration: your entire inventory and its’ value (if you purchase and sell goods)
- cash administration: all receipts of products that you have bought or sold with cash
The below you must keep for ten years:
- Data related to immovable property (such as business premises, storage facilities and land).
- If you make use of the Union scheme, housed in the One Stop Shop.
If you only keep a printed copy of your digital files, you do not comply with the retention requirement. For computer programmes and files, the retention period also applies. You must make sure your digital files are accessible and in working order upon inspection. This also applies to the associated programmes.
Source: business.gov.nl