BASIC PRINCIPLES OF BOOKKEEPING
Many small companies use Excel for their administration, as you are not required to use an accountant or a specific bookkeeping program. However, it is very important that your bookkeeping is up-to-date.
Bookkeeping needs to be done on an accrual basis, not on a cash basis.
Expenses you incur for your business activities, can be offset against your turnover. Some expenses are excluded from deduction such as:
- Cost for personal hygiene (hairdresser, massage);
- Penalties (speeding tickets, parking tickets etc);
- Office space in your home (only in very exceptional cases allowed).
The invoices you issue to your clients have to hold of a number of details such as:
- The date
- Sequence number of the invoice
- Your full business name and address
- Your client’s full name and address
- Your VAT number
- The amount of the invoice exclusive of VAT
- Applicable VAT rate and VAT amount
- Amount inclusive of VAT