Bookkeeping for webshop owners. From sales invoices to tax returns.

We could start this blog with the Tax and Customs Administration's famous slogan: we can't make it more fun, but we can make it easier. Bookkeeping is probably the most tedious compulsory chore entrepreneurs have to deal with. In this blog, we explain exactly what 'bookkeeping' for webshop owners means, and how you can make it as easy as possible for yourself. Hint: automate.

What is bookkeeping?

Bookkeeping is the processing of financial records. Financial records consist of income and expenditure.

Keeping track of income involves creating invoices, sending invoices and collecting payment. Keeping track of expenses is done with bank statements, receipts and possibly a purchase journal.

You can also do your own bookkeeping

As an entrepreneur, you are required by law to keep your accounts; after all, you must be able to report your income and expenses exactly to the Tax and Customs Administration. This is the tax return.

Bookkeeping is equally important for you as an entrepreneur, as it gives you insight into the financial health of your webshop. With this insight, for example, you know exactly when you can hire an employee, expand your webshop with an additional product category, or just take it easy on your purchases because your cash flow isn't as positive as you want it to be.

Every quarter, you file your VAT return. By keeping track of your income and expenses, you know exactly how much VAT you have to pay to the Tax and Customs Administration. Once a year, you do the income tax. For this, you need not only a statement of your income and expenses, but also a opening and closing balance sheet and a profit and loss account. These together are called financial statements.

Are you self-employed? If so, all you have to take care of is VAT returns and income tax; but if your webshop is a legal entity (in other words, if your webshop is registered at the Chamber of Commerce as a private limited liability company (bv), public company (nv) or foundation) you will then also have to pay corporate tax. This is tax you pay on your company's profits. Similar to income tax, you also need the opening and closing balance sheet and profit and loss account for corporation tax. As a bv, nv or foundation, you must also file the annual accounts with the Chamber of Commerce.

'Time is money'

Bookkeeping is not only known as a compulsory and tedious chore. It is also seen as time-consuming occupational therapy. And, depending on the number of invoices you send out each month, the number of hours you spend doing your bookkeeping can indeed add up quite a bit.

Fortunately, most webshops send out invoices automatically. This is often facilitated by the webshop software. Then, every quarter, you, as a webshop owner, sit down with a pile of invoices and bank statements, slaving away for hours on your VAT return.

Every quarter: the VAT return

Initially, you make a summary of your income. You do this by making a list of the invoices you have sent out. After the invoice numbers, put the invoice date and three amounts: the full invoice amount, the amount excluding VAT and the VAT itself.

You also make a summary of your expenses. You do this by making a list of all the receipts you have collected. After that, again put the three amounts: the amount you have paid, the amount excluding VAT and the VAT itself.

With this information, you file your VAT return with the Tax and Customs Administration.

Every year: income tax

Income tax is even more work. This is because, as an entrepreneur, you file a tax return in two parts: the private part (we won't go into that now) and the business part. The business part consists of the aforementioned profit and loss account (showing the past year's income and expenses) and the balance sheet (a summary of your company's assets and liabilities).

The figures on your profit and loss account

• Revenue: you calculate this with all the sales invoices, using turnover excluding VAT.
• Purchase costs: you calculate these using the purchase invoices from your suppliers.
• Depreciation: the total amount you have depreciated on your assets in the past year.
• Operating expenses: you calculate these using invoices and receipts.
• Financial income and expenses: interest, loan costs, notary fees, and the like.
• Extraordinary income and expenses: the additional tax for your car, for example.

The figures on your balance sheet

• Fixed assets: the value of your assets and the amounts you have lent.
• Stock: the value of things you sell (whether processed or not).
• Accounts receivable: outstanding sales invoices and any VAT you are still getting back.
• Cash: the balance on your bank account.
• Business assets: your company's equity, plus reserves, on 1 January and 31 December of the previous year.
• Provisions: amounts you have set aside, for example to provide your customers with guarantees.
• Long-term debt: amounts you have borrowed from the bank, family or friends with a maturity longer than 1 year.
• Current liabilities: outstanding invoices from suppliers and tax you still have to pay.

Based on the figures you submit to the Tax and Customs Administration, it will be determined how much income tax you have to pay.

Saving time (and money) with accounting software

It is probably clear to you by now that 'doing the accounts' isn't easy, takes time and that you definitely don't want to be making any mistakes! Could all this be done differently?

Thankfully, yes! Accounting software makes things easier. Incidentally, the Tax and Customs Administration itself is also in favour of using accounting software. In this, all business data are neatly arranged, and you automatically have a profit and loss account and balance sheet for your business. You just take this data when filing your tax return. If a child can do the laundry, why can't a webshop owner do the accounts?!

There is an awful lot of accounting software on the market that will save you time (and money). Some of this accounting software is especially suitable for webshop owners: Moneybird, Exact Online, SnelStart and E-boekhouden.nl, among others. You can read more about these in "What is the best accounting package for my web shop?".

Automate your bookkeeping

You're not quite there yet with just accounting software alone. Yes, you do have a financial overview, but it would be even more convenient if the figures from your webshop are automatically transferred to your accounting software. You can then automate this side of things as well. The benefits? It saves a lot of time, as you no longer have to manually type in all kinds of amounts. Which brings us to the second benefit: because the figures are automatically transferred, there is zero chance of error.

You can automate your bookkeeping by linking your webshop software to your accounting software. You can do this, for example, with a Combidesk link. From now on, you will be able to do your VAT and tax returns flawlessly - as well as in no time! Which will leave you lots of time to sell even more.