Bookkeeping for freelancers: the basics
What must a freelancer in the Netherlands record, how long to keep it and how to keep it simple. The basics of your administration in five steps.
As a freelancer (zzp’er) you are legally required to keep records showing your assets, profit and VAT position. It sounds heavy, but the basics are manageable.
What do you record?
- All sales invoices and payments received
- All purchase invoices and receipts for business expenses
- Your bank statements (keep private and business separate!)
- Your hours (important for the hours criterion)
- Assets such as a laptop, with purchase date and price
In five steps
- Open a separate business bank account. It saves a lot of sorting later.
- Pick accounting software, or a spreadsheet for a very small business.
- Book weekly. Fifteen minutes a week is less work than a day per quarter.
- Store receipts digitally. Photos are allowed if they are legible.
- Set money aside immediately from each payment for VAT and income tax.
How long to keep records?
Seven years. Ten years for real estate. See retention obligation.
How much to set aside?
Use the VAT calculator to see how much VAT to pay over from each amount, and the hourly rate calculator to check your rate leaves room for tax.