Useful Tips for Emerging Business Owners on Business Administration and Bookkeeping

 When you are starting your business, it is important to be clear about your financial position all the time. For this, it is crucial to have clear business records providing uninterrupted vision while guiding your company in the right direction. You must keep a tab of your revenue and expenses by keeping records and retaining them.

Being a starter, you may feel overwhelmed with these many responsibilities and tedious jobs to keep your company finances fit and secure. You can attend the finance-related event, training, seminars and workshops.

Record-keeping Requirements for your Business

The documents you maintain must meet standards set forth by the Tax and Customs Administration. Your records should include:

•  updated records
•  travel records for a personal vehicle or public transportation
•  taxes, both VAT and income tax
•  model agreements
•  invoices: received invoices and copies of bills generated at your company (view example, pdf)
•  transaction statements
•  cash-flow records
•  contracts and correspondence with clients and suppliers
•  contracts and communication with suppliers

Keep 7 to 10 Years Records  

How long are you required to maintain your records? The retention term is at least ten years for information pertaining to immovable property and rights to immovable property. The fundamental data of your company management must be retained for at least seven years. The essential information must at least have:

• accounts receivable and accounts payable
• purchase and sales records
• general ledger
• stock records
• payroll records

Do you keep the data in digital form? In that case, you should ensure that the files and programs are accessible during the retention term. Additionally, it implies maintaining access to (possibly expensive) programs you don't presently use. Remember that.  

Agreements with the Tax and Customs Administration

With the Tax and Customs Administration, you may agree on whether you want to maintain your records on paper or digitally. You can also agree on the level of information you should maintain in your records. Whether you retain daily statements or cash register slips, for instance. These agreements are documented in writing by the Tax and Customs Administration.

Do it Yourself or Outsource your Accounting 

You can manage your finances yourself. Alternatively, you can hire a bookkeeping and accounting service to maintain your finances. Competent accountant typically pays for themselves. These financial experts provide guidance, assist you in setting up your accounts, and are knowledgeable about various tax advantages.

Essential Tips

• Are you prepared to outsource? Be mindful of the cost, service, and level of service a bookkeeper or accountant must deliver.
• Request many quotes and draw your requirements in clear terms.
• At the end of each period, examine the time and effort put into the services, for example, on records and tax deductions. Also, include the time you spent on finance management and bookkeeping because time is equivalent to money.  
• Do you have any tax-related queries? Inquire with the Tax and Customs Administration; you can connect on chat (in Dutch) during business hours.
• Do you want to manage bookkeeping on your own? Then consider participating in some financial event, training, seminars or workshops. You can learn valuable tips on how to efficiently manage your finances.

Bottom Line :

Starting your business is a big achievement, but managing it thoroughly could be a little challenging. But don’t worry! Mulbah Consultancy has got your back. We can help you with your business administration and bookkeeping services. We not only provide accounting and bookkeeping services but also host events, training, seminars or workshops to help emerging entrepreneurs manage their businesses efficiently.