Financial administration requirements

Setting up a good financial administration is necessary for every entrepreneur, and it is the foundation of every successful business. It is important for entrepreneurs to set up good financial administration, but it is also legally required. Based on your financial administration you can fill in your tax returns. Your tax return is occasionally checked by the Dutch tax authorities, and the consequences (read: hefty fines) can be very significant if not properly submitted. A well organized financial administration ensures that your tax declaration remains simple and accurate.

What data do you need to save?

There are a number of requirements that your financial administration must meet. According to the Dutch tax authorities, all data of your company must be saved for your financial administration. A few examples of this company data are:

  • Revenue and expenses
  • Assets and debts
  • Debtors and creditors
  • Hours registration
  • Kilometer registration

This data gives you a good overview of how your company is doing. With Gekko’s accounting software you can easily save most of your company data for your financial administration.

How long should you store your data?

The company data that you are saving for your financial administration is not only relevant to you, but you also need to save your company for the Dutch tax authorities. Because the Dutch tax authorities can occassionaly check the financial administration of your company. An entrepreneur is required to keep the data of the financial administration for at least 7 years, but we at Gekko will always save this data for you.
In order to keep up your financial administration, Gekko saves your invoices and costs, plus the transactions that are linked to them. In addtion Gekko saves your contacts and projects, which can also be archived. And lastly, Gekko saves the hours, and trips, that you make for your company.

Administrative requirements for VAT

Gekko can also be used to create a VAT report. The financial administration that you save in Gekko forms the basis of  your VAT report and the VAT for your declaration is automatically calculated in Gekko. After Gekko has calculated your VAT report you only need to copy this information for the submission of your VAT retun. 

Tip: save every VAT report that you have submitted with the submission of your tax returns.

Administrative obligations for payroll taxes

When you are a sole-proprietor and you hire employees, then you will need a payroll administration for your financial administration. If you work at a private company, then you will also have to make a paycheck for yourself. A good payroll administration is necessary for a succesful business, and you often have to use an external specialist to manage your payroll administration.

Hours criterium

It is not mandatory for your financial administration to register all the hours that you make. However, there are a few tax benefits that you can take advantage of. In order to take advantage of these tax benefits you must be able to verify your registered hours to the Dutch tax authorities. 
In Gekko you can keep track of your hours for the Dutch tax authorities and provide proof in order to verify your registered hours. To meet the hours criterium for tax benefits, you must:

  • Have worked 1.225 hours or more for your company. Even if you started halfway during the year.
  • Spend more time on your own business than any other work. This applies for when you have a job on the side, next to your own company. If you have not been an entrepreneur in the last 5 years, this does not apply
Tip: use the Gekko Hours app to track all your hours.