9 counting stock• atleastonceayear(usuallyonDecember31storJanuary1st)theentirestockmustbecountedandthestock

inhandhastoberecorded;• Thestockisvaluedonthebasisoftherelevantpurchaseprices,excludingVAT;• acopyofthislistissenttotheaccountant.

10 listings for the balance sheet• wheneverabalancesheetisneeded,butinanycaseonDecember31stofeachyear,threelistsneedtobe

made;• astocklistasdescribedinpoint9;• adebtorlistofall(sale)invoicesnotyetpaidbyclientsatthatmoment;• acreditorlistofall(purchase)invoicesofsuppliersthathavenotyetbeenpaidbyyouatthatmoment.

PayparticularattentiontoinvoiceswhicharereceivedinJanuarybutdatedinDecemberofthepreviousyear.Theseinvoicesshouldalsobeonthelist.Totalupthelistsandsendacopyofeachtotheaccountant.

11 If the accounts are prepared each (calendar) quarter, all files referred to above, with the exception of the ‘correspondence’ file, should be submitted to the accountant for processing, unless otherwise agreed.

12 if you make your own VAT returns (via Internet), you must include copies of the of these return forms when you deliver the files to the accountant. 13 Any questions? Call your accountant. There are no stupid questions; it’s stupid not to ask!

Examples of the debtors, creditors and stock lists

List of deptors on 31 January 2008 company name: J. Jansen in Rotterdam

name/place number of invoice date of invoice excl. VAT VAT incl. VatH.J. Appel - S’dam 2008-045 15-01-2008 E 5.000,00 E 950,00 E 5.950,00P.J. Boer - R’dam 2008-055 21-01-2008 E 2.500,00 E 475,00 E 2.975,00etc.total (21 invoices) E 30.000,00 E 5.700,00 E 35.700,00

List of creditors on 31 December 2008 company name: J. Jansen in Rotterdam

name/place number of invoice date of invoice excl. VAT VAT incl. VatDe Klei R’dam 125.2365 12-10-2008 E 5.000,00 E 950,00 E 5.950,00Van der Meer D’Haag 89525 31-12-2008 E 2.000,00 E 380,00 E 2.380,00Eneco - december E 75,00 E 14,25 E 89,25KPN nov - dec E 57,00 E 10,83 E 67,83etc.total (25 invoices) E 15.215,00 E 2.890,85 E 18.105,85

List of stock on 30 June 2008 company name: J. Jansen in Rotterdam

description quantity unit price totalstock of product A 40 E 75,00 E 3.000,00stock of product B 30 E 80,00 E 2.400,00etc.total (25 invoices) E 46.750,00

International trade, VAT & bookkeeping

Whenyouaredoingbusinessoutsideyourcountry,awholenewsetofrulesisapplicable.Theserulesapplynotonlytothecontentofinvoices,butalsowhen&howyoumustuseadifferentVATpercentage.ItiscommonlymisunderstoodthatanysaletoacustomeroutsideyourowncountryisasalewithoutVAT.Thisisabsolutelynottrueandhasbroughtmanypeopleintotrouble.Itisimportantthatyouhavesomeguidanceonthesemattersbecausethepenaltiescanbeverysevere.TogiveyousomeunderstandingoftherulesIwillgiveabriefoutlineonsomepointsofinterest:

- First,youhavetodivideyoursalesinthreeparts:domestic,EUandoutsideEU(export).Eachistreateddifferently.- FortheVATrulesapplicableyouneedtofocusonthefinaldestinationofthegoods,notonthecountryofthebuyer. AsaletoaFrenchcompanybutadeliveryintheNetherlandsistreatedasadomesticsale,notanEUsale.- FortheVATonimportedgoodstheinvoicedateisnotrelevantbutthedateofarrivalintheNetherlands (VATclearancedate)is.- IfyoudobusinesswithintheEUyoualwaysneedtheVATnumberofyourcustomer,checkitandstateitonyour invoice.- OnceeveryquarteryoumustfilealistingofallyourEUcustomersandthevalueofyoursalestothem;yourfiles shouldbepreparedforthat.- Ifyoucharge0%VATtoacustomeranditisnotcorrectyouhavetopaytheVATanyway,addedwithafineand interest.Soincaseofdoubt:bettersafethansorry!- Therecouldalsobea(monthly)obligationforyoutofileyourEUsalesbyarticle,country,numbersorweighttoCBS, thestatisticbureauoftheDutchgovernment.Ifyourfilescannotprovideyouwiththisinformation,youwillhavea hugeproblemgatheringtheinformationneeded.

Pleasevisitmywebsitewww.ericleenderts.comforinformationaboutwhatIcandoforyou.Thereisaspecialpageforcompaniesthathavejuststartedandinformationabouthowyoucanprocessyourownfilesviainternet.

Eric Leenderts B.V.TruusSmulders-Beliënstraat153207DJSpijkenissefax:084-7112106e-mail:info@ericleenderts.nlwebsite:www.ericleenderts.com

©1988-2007EricLeendertsB.V.

The file systemA simple method of bookkeeping

The file systemA simple method of bookkeeping

The file system is a simple but effective way of keeping your books up to date and submitting them to an accountant for processing. The more efficient the communication is between you and your accounting office, the less time is needed to process. With this system you save money!

The start: first name the files

You start with:•4to7files•3alphabeticaldividersforfiles•whenneeded:acashbookwithVATcolumnsAllthesematerialsareavailableatanyofficesupplier.

The files are labeled: cashbankdebtorssalesledgercreditorspurchasedaybookcorrespondence

for smaller firms, the following files can be merged to a single file:cash/bank/girodebtors/salesledgercreditors/purchasedaybook

the debtors, purchase daybook and correspondence files are all arranged alphabetically.

Next: how does the system work?

1 File all the bank statements in the file ‘bank’ with the most recent statement on top. Thiscanalsobeaprint-outofyouraccountfromtheinternet.

2 when you prepare an invoice for a client, it should state at least:•yourfull(company)nameandaddress,registrationnumberattheChamberofCommerceandVATnumber;• theclientsfullnameandaddress;• ainvoicedateandnumberinsequence.Forexamplein2008youmightstartwith2008-001,then2008-002,

andsoon.Doyouthinkstartingwithoneisannoying?Startwith2008-100andcontinuethesequence;• acleardescriptionofwhatserviceyouhaveprovidedorwhatproductyouhavedeliveredandoverwhichperiod

oftime;• aclearstatementoftheamountexclusiveVAT,theVATdue,theVATrateandthetotalamounttobepaid;• sendtheoriginalinvoicetoyourclientandkeeptwocopiesforyourownreference.

3 the two copies are filed separately• onecopyisfiledinthe‘salesledger’file,withthemostrecentontop.Thisfilewillthereforecontainallinvoices

ofayear,paidornot.Neverremoveanythingfromthisfile.• onecopyisfiledinthe‘debtors’file,arrangedbynameofthecustomer(alphabetically).

4 on receipt of (purchase) invoices from suppliers, we recommend to make a copy• thiscopyisfiledinthe‘creditors’filebynameofthesupplier(alphabeticallyoronestimateddateofpayment,

whateveryoulike);• theoriginalisfiledinthe‘purchasedaybook’file(alphabetically).Neverremoveanythingfromthisfile;

5 on receipt of client payments• removethecopyoftherelevantinvoicefromthe‘debtors’fileandfileitbehindthecashorbankstatement,

dependingonhowtheclienthaspaid;• cashpayments,whentherearenoinvoices,arerecordedinthecashbookaccordingtotheentryonthedaily

cashregisterprint-outoryourowncalculation.

6 payments to suppliers• removethe(copyofthe)suppliersinvoicefromthe‘creditors’fileandfileitatthefrontofthe‘cash’or‘bank’file,

dependingonhowyouhavepaid;• onreceiptofastatementorprint-outwhichcontainstherelevantpayment,filethis(copyofthe)purchase

invoicebehindthisstatement;• doexactlythesamewith‘pin’of‘chip’paymentsyouhavemade.Makesureyouhavetheoriginalreceipts,

notonlythe‘pin’or‘chip’receipt,andthattheamountofVATismentioned.Ifnot,theVATcannotberefunded!

7 real bank balance• aslongaspaidpurchaseinvoiceshavenotappearedonastatement,theyshouldbefiledbeforethemostrecent

statement;• evenwithoutacomputeryouwillalwaysknowwhatyourrealbank-balanceis.

8 the use of a cash book• allreceiptsarefiledinthe‘cash’filebydate,withthemostrecentontop;• thecashreceiptsineachyeararenumberedconsecutively1,2,3,etc.;• thisreceiptnumberisenteredinthecolumn‘%’inthecashbook.Inotherwords:thiscolumnisnotusedto

recordtheVATrate;

Sales Invoice(by number)

Copy 2 Debtors(alphabetically) Bank

Original to customer

Copy 1 sales ledger(by number)

Cash

By d

ate

Purchase invoicesfrom suppliers

Cash

By d

ate

Creditors(alphabetically or by date) Bank

Copy in purchasedaybook (alphabetically)

• eachpageinthecashbookbeginswithanopeningbalanceinthecolumn‘amount’underincomeandfinisheswithacheckedclosingbalanceinthecolumn‘amount’underexpenditure;

• theoriginalofthepagefromthecashbookissavedinthefiletogetherwiththerelevantreceiptsafterthefinalbalancehasbeencheckedandallcolumnshavebeenaddedup.The(carbon)copyofthepageremainsinthecashbook;

• onreceiptofcashpaymentsfromclients(salesonaccounts,invoicesent)the‘VAT’columnisnotused,butinsteadtheentiresumthatwasreceivedisenteredinthecolumn‘amount’.Forcashsales,wherenoinvoicehasbeengiven,the‘VAT’columnisused.ThosecashpaymentsarebrokendownintotheamountexclusiveofVATandtheVATamountandenteredinthecolumn‘amount’,theVATamountinthecolumn‘VAT’;

• cashpaymentstosuppliersarealsobrokendownintotheamountexclusiveofVATandtheVATamount.Thishastobestatedonthereceipt.TheamountexclusiveofVATisenteredinthecolumn‘amount’,theVATamountinthecolumn‘VAT’.DonotentertheVATamountyourself!IfthereceiptdoesnotstatetheVATamount,the‘VAT’amountcolumnisleftblankandthetotalamountenteredinthecolumn‘amount’;

• entercashwithdrawalsfromthebankinthecolumn‘amount’underincome;entercashdepositsinthebankinthecolumn‘amounts’underexpenditure;

• ifthesystemhadbeenusedcorrectly,thetotalsofthecolumn‘VATand‘amount’underincomeareequaltothetotalsofthecolumn‘VAT’and‘amount’underexpenditure;

• beespeciallycarefulaboutprivatedeposits(businessexpensespaid)orcashwithdrawalsforprivateuse.Alwaysrecordtheseamounts,otherwisethecashbalancewillneverbecorrect;

• warning:thecashcanneverhaveanegativebalance(expendituregreaterthanincome);• paymentswith‘pin’,‘chip’orcreditcardsgointothecashturnover.Theyshouldbeenteredas‘expenditure’

withthisdescription.Otherwisethecashbalancedoesnotreconcileastheamountsarenotreallyreceivedincash.

Sample cash book

Name of company: J. Jansen in RotterdamPeriod: Tuesday 8 to Friday 11 january 2008 income expendituredate description % amount VAT amount VAT08-01 opening balance E 50,0008-01 turnover of shop (incl. pin- and chip payments) 1 E 219,26 E 41,6608-01 cashcard payments E 50,0008-01 creditcard payments E 125,00

09-01 turnover of shop 2 E 200,20 E 38,0409-01 purchase from H. Jansma 3 E 79,41 E 15,09

10-01 turnover of shop 4 E 228,80 E 43,4710-01 payment from debtor Paashaas 5 E 270,0110-01 private withdrawal E 266,00

11-01 turnover of shop 6 E 95,32 E 18,1111-01 gas/electricity bill paid at post office 7 E 400,0011-01 closing balance E 269,37 totals E 1.063,59 E 141,28 E 1.189,78 E 15,09 E 1.204,87 E 1.204,87

The total of the income columns must be equal to the total of the expenditure columns.