As a starting entrepreneur, you have more than enough to arrange: generate revenue, find and retain customers, network and record all of that administratively well. You like to keep costs low in all areas, so you believe that accountant, accounting package and business account. Can you live without it? Here you can read my own story as an entrepreneur.
Through networking I came in contact with a local accountant who was happy to support me. Certainly as a starter with some numerical insight, it is easy to keep records, but I still wanted some control for the Tax Authorities. And when you are an internet entrepreneur like me, new things quickly come your way: an assignment from Germany, a partner in France, a WordPress theme from Australia. How do you record that administratively correctly?
Invoicing and accounting package
I'm stubborn, so I used Word and Excel. Until I was informed by a customer that my Word invoice contained a calculation error. Ai. Not really professional. He was kind enough to recommend an online billing service to me: digitalefactuur.nl. Later I switched to WeFact because of the handy iDEAL connection and the supposed automatic possibilities, which unfortunately do not work for me as expected.
As a former employee of SnelStart, this user-friendly software is certainly obvious. My bookkeeper has already advised SnelStart several times, because checking by an accountant becomes a lot easier. Only I did not really like the cost structure: because I occasionally receive an invoice from abroad (Europe, outside Europe) and send, the monthly costs doubled or tripled directly. While I process relatively few invoices. So is still open, I still use Excel and the accountant checks. But that business account? Arranged anyway.
Choose business account
Since the banking crisis, I have been privately at the ASN bank. I thought that if I didn't get interest, my money could at least get a socially useful interpretation. I also thought it would give my clients a great appearance. Moreover, at that time in 2013 it was not even possible to have a business account with the ASN.
After a few months, my accountant came to the point that my ASN was not a business account: difficult to check receipts and payments. Private and business intertwined, and when you enter a private account on your balance sheet, you put it into business as it were. I also had no clear idea of how my company was doing in business. I reasoned: if more comes in than comes out, then it goes well. But your private releases give a distorted picture. And my bookkeeper does not need to know where I spend my money privately.
As an involved entrepreneur I could only go to business in 2014 Triodos bank, so that choice was made quickly. But as I was recently able to inform them via a survey, I only recommend them for that green reason. Because they still have their old app in the Google Play store, logging in via the site is difficult because you already need your Identifier again and they keep pushing that investing. But do you want to bank green? Then you have a choice between ASN or Triodos today.
Starting your business account - 3 practical tips
I sketched it from the beginning: if starting entrepreneur are you really busy. And even if you decide to take that business bill, then you are inclined (at least) to go through it quickly, because those customers are waiting. Therefore three personal tips to check out:
- Cost da? Yes, a business account costs considerably more money than a private account. Think about 30 euros per quarter. Now these are operating costs, so you can enter these as costs (without VAT!). Make sure your new bank communicates this nicely and clearly (not like the Triodos bank that only debits it without any explanation) or that you take this into account every time with the quarterly declaration.
- How much? How much can you transfer from yourself to payments per day? Do not set this too low, otherwise you will suddenly notice that you cannot transfer that sales tax to the Tax Authorities in one go. And then you notice how much bureaucracy is involved if you do that momentarily want to change, because you can not online (took weeks with me). Tip: you can transfer your sales tax in parts provided that you do this within the specified period with the given payment reference.
- Communicate well. One of the reasons for a business account for me is that it will appear on your company name. At the founding of my company I decided to build my own brand. Bloeise. But when I transferred business from ASN to Triodos, I had to communicate the new business account number properly. Convenience serves people, after all, and a number of customers had stored the old bill in their records. So communicate your new account number and name via: website, quotes, invoices, an e-mail to customers, possibly the footer of your e-mails, printed matter ... all your external communication. And do you work with partners, freelancers or employees? Make sure they also apply the correct bill. And. Keep checking your private account, especially the first year.
As a last tip: think ahead when choosing your bank. Do you want to do direct debits? Do you meet the set rules? What do you expect from a banking app for one business account? By the way, do you get a nice start-up scheme (like the first year for free)? How many transactions fall within the monthly amount and is that sufficient for you now and in the future? Do you also receive a bank card or does it cost extra?
Yes, financial administration is a hassle. And yes, you just have to arrange that properly. Choose an accountant who suits you and can give you appropriate advice. In short: who already helps similar companies. And immediately take that business bill, because that will just make a fuss later. Take your time or get your bookkeeper to support you. And yes, even if I don't do it myself, consider that accounting package or at least an invoice package. With Excel I now know exactly what amount is used for what, but that was at the expense of the bookkeeper's time and extra hours.