The Netherlands has a favorable fiscal climate and many investors choose to open companies here. Regardless of the type of company or business sector, all Dutch companies must observe the generally applicable rules for paying taxes and tax compliance in the Netherlands. Our expert Dutch accountants can help you with various services, including bookkeeping services in the Netherlands.
After a company is registered in the Netherlands and it begins its commercial activities, it must observe all the regulations for financial reporting available in the country. The tax year is generally the same as the calendar year in the Netherlands and companies need to file annual financial statements. As a foreign entrepreneur in the Netherlands it is advisable to seek the help of a Dutch accountant or employ professional bookkeeping services.
|Types of companies serviced
Small, medium and large enterprises
|Sale and purchase invoices, receipts, payments
Financial transaction recording services (YES/NO)
|VAT documents preparation (YES/NO)
|Applicable accounting standards
|Dutch and international financial reporting standards
|Tax registration services
YES, tax and VAT registration services available
Standard and simplified invoices can be issued. Minimum duration for maintaining issued invoices is 7 years.
|Support in preparing and filing financial statements (YES/NO)
|Special bookkeeping support (YES/NO)
|Yes, for e-commerce companies, for foreign companies with operations in the Netherlands
|Electronic tax return filing services, compliance with industry-specific requirements, support in obtaining tax incentives and deductions.
What is bookkeeping comprised of in the Netherlands?
Bookkeeping designates a set of accounting procedures that must be performed by any commercial operator. Bookkeeping represents a legal procedure that must also be kept by entities that do not have a commercial purpose – for example, foundations or non-profit organizations. It designates the set of procedures through which the financial records of the entity are kept and recorded. Our accounting firm in the Netherlands can assist with in-depth advice on the types of bookkeeping operations that can be delivered to local and foreign entities, but some of the most common bookkeeping activities are the following:
- • recording the receipts issued for various goods and products the company delivers on the local market;
- • recording the invoices of the company’s suppliers (and verifying such documents);
- • processing the documents related to the salary of the employees (employees’ pay);
- • creating the company’s compulsory financial reports and monitoring various documents;
- • bookkeeping also deals with accounts receivables, paying the company’s suppliers and other common corporate transactions.
Bookkeeping requirements in the Netherlands
Bookkeeping deals with the recording of all financial transactions and it is an important part of the accounting process. Bookkeepers have various methods for performing their activities and these methods are usually adapted to the type of Dutch company and its financial activity.
Our Dutch accountants can provide professional bookkeeping services and constantly monitor the activity of your business to ensure that everything is running smoothly and every financial aspect is taken care of. The activities that are monitored in bookkeeping are: purchases, sales, receipts and payments, either individual or made through the company.
A Dutch bookkeeper can make sure that your daily financial transactions are closely monitored and documented. He or she usually records the daily activity in a daybook. Also, Dutch bookkeepers can also deal with ledgers, however, bookkeeping usually deals only with financial transactions and their financial influence on the individual or company. Bookkeeping systems can be manual or electronic.
Accounting services in the Netherlands
Our Dutch accountants can provide complete bookkeeping services and offer you other financial solutions, designed to fit the needs of a natural person or a legal entity. Our accountants can assist small businesses, including sole traders, but they can also provide accounting services to large, multinational corporations. Some of the most common accounting services that can be offered by our Dutch accounting firm are the following:
- • tax registration and compliance in the Netherlands – all businesses in the Netherlands have to be registered for tax purposes and provide various financial documents, depending on their legal structure;
- • debt monitoring and risk assessment – companies can face a wide range of risks in a given period of time, which can vary based on the economic sector in which they activate, management decisions and others associated factors;
- • accounting and annual tax fillings – our Dutch accountants can provide a clear understanding of the schedule for submitting various financial documents and tax returns;
- • audit services and payroll services – the audit represents an accounting procedure that must be completed by most of the Dutch businesses;
- • company management in the Netherlands – it represents a major component which has a strong influence on the outcome of a business.
Why is bookkeeping such an important branch of accounting?
Bookkeeping is the first and most basic part in the accounting of any business, no matter how small or large this is. Even sole proprietorships need to keep bookkeeping accounts in order to prove their transactions and pay their taxes in the Netherlands.
One of the crucial aspects of a company’s accounting is bookkeeping, and Dutch enterprises are no different. Bookkeeping entails not only keeping track of financial transactions but also maintaining all financial records in compliance with the law, for the necessary amount of time, and allowing access to them whenever needed. The necessity for bookkeeping services is not limited to businesses; sole proprietors and other groups may also encounter this demand. Because of this, our Dutch accounting firm works with both small and large clients.
The billing for various products and services delivered to clients, the recording of all types of receipts and invoices, the verification of these receipts and invoices, the payment of suppliers, and the management of the accounts payable and accounts receivable departments are just a few of the bookkeeping services we can offer you. In accordance with the rules you and your business must follow, we can also create monthly, quarterly, and annual financial reports.
Feel free to address our accountants in the Netherlands for more information on our basic bookkeeping services. Here is also an infographic on our solutions:
What should an investor know on the Dutch accounting system?
Bookkeeping is a part of the Dutch accounting system and it generally refers to the methods and the practices that are used in order to register all the required financial operations of the company, as per the applicable law. As a part of the Dutch accounting system, bookkeeping must be done following the applicable procedures, which are mainly given by the accounting standards that are applicable in this country.
Businessmen who want to start a company in the Netherlands or those who want to expand a foreign business on the local market should know that bookkeeping must keep the track of all the company’s records that are registered throughout the financial year, which, in the Netherlands, coincides with the calendar year.
The bookkeeping procedures that must be maintained by a local business follow the International Financial Reporting Standards (IFRS), which represent accounting procedures that were adopted at the level of the European Union (EU). However, in the case of small businesses registered in the Netherlands, their accounting principles (and thus, their bookkeeping procedures) can vary.
A small Dutch company can choose to follow the Dutch Civil Code (Book 2), the Dutch Accounting Standards for small entities or for medium-sized companies, or the IFRS principles combined with parts of the Dutch Accounting Standards. Our team of accountants in the Netherlands can provide more details on how to select the appropriate accounting principles for a small business. It is also worth knowing that the accounting regulations are prescribed by the Dutch Accounting Standard Board, the main regulatory body in the field.
Respecting accounting standards in the Netherlands
Knowing that bookkeeping is a component of overall accounting in the relevant organization will help you understand why bookkeeping is crucial for a business in the Netherlands. From this perspective, the following rules must be adhered to:
- all Dutch companies must adhere to accounting standards in accordance with their size;
- they must prepare annual accounts that must reflect the most relevant financial aspects of the business; businesses must appoint accountants who meet the requirements of the Accounting Standard Board;
- they must account for every financial document issued and/or received during the entire financial year.
Here are the main highlights related to accounting compliance in the Netherlands:
- the financial year in the Netherlands starts on January 1st and ends on December 31st;
- income tax returns for the previous year must be filed between March 1st to April 30th;
- extensions may also be requested prior before the filing period ends;
- invoices issued by Dutch companies must be kept for 7 years;
With respect to the corporate tax, it is calculated as it follows:
- 15% (for the first 245,000 EUR);
- 36,750 EUR + 25% for amounts of more than 245,000 EUR.
Employers must also consider the payment of an8.55% for disability insurance and 5% for childcare, while employees must consider 27.65% contributions, plus 2.94% or 7.94% as an unemployment premium A wage tax of 9% to 51% also applies on employees’ salaries.
Should you need more information on our bookkeeping services in the Netherlands, feel free to get in touch with us.
How should bookkeeping be done in the Netherlands?
Bookkeeping records the company’s financial situation and, therefore, the procedures and methods used by any accountant should provide a clear image on the company’s transactions and its financial status at a given moment. The regulations concerning the Dutch bookkeeping procedures stipulate that the financial information that is delivered by a company has to be clear, reliable and comparable, these being compulsory requirements.
Furthermore, all the bookkeeping documents have to be completed following the accounting principles that are established in this country. Businessmen must also know that the bookkeeping procedures depend based on the legal entity of the company (some company types are not required to publish their financial statements, as is the case of the limited liability company, for example). Here is our video on our services:
How our Dutch bookkeeping services work
As all business owners are aware, a Dutch company’s accounting and bookkeeping require the use of professional and authorized software. One of the biggest benefits of using our bookkeeping services in the Netherlands is the access to such software without having to pay for all the licenses and updates it comes with, as this software is known for being specialized, and thus, pricey.
One of the most crucial responsibilities our accountants in the Netherlands will adhere to is understanding the laws a firm must follow. For comprehensive bookkeeping and accounting services, you can count on us.
If you are interested in investing in the Netherlands and need professional accounting services, our team of Dutch accountants is ready to provide the best possible accounting and bookkeeping services in the Netherlands. Please contact our accountants for a personalized offer and for a full presentation on the bookkeeping services that can be provided in the Netherlands.