Skip to main content

Reasons why the current business accounts method is outdated

The traditional accounting method dates back to 1495 and was designed by an Italian monk. This is still the basis of most business accounts programs, but no longer suits today's entrepreneurs. Below are the 7 reasons why you should no longer work with the traditional accounting method.

Business accounts is all about your business

You want to know how you are doing. Because only then can you make the right choices and know whether you have enough money in your account to pay your taxes. Yet traditional accounting systems are not made for entrepreneurs, but for accountants. With complex bookings, incomprehensible concepts and unclear reports.

The Tax and Customs Administration does not ask much at all

You pay your taxes properly and the tax authorities want to know what you based your calculation on. The tax authorities do not ask much of you for this. For companies with a turnover of up to 12 million euros per year (ie for 85% of all companies) simplified accounting is sufficient. All you have to do is register how much something has cost and what part of it was the VAT. Add a copy of the invoice and you're done. The tax authorities do not ask for more. Yet with the traditional business accounts system, the smallest company's books are kept as if it were a multinational company. That is a totally unnecessary waste of time and money and certainly does not make it any clearer.
The traditional accounting method dates back to 1495 and was designed by an Italian monk. This is still the basis of most business accounts

You don't want to look in the butt of a cow

Entrepreneurship is about the here and now, not about last month and certainly not about last year. Still, traditional accounting systems are completely obsolete. Annual accounts are made months after the year-end close. Sometimes even longer than a year after the year-end closing. This makes them completely worthless.

The Tax and Customs Administration only has 12 cost items

Something that few entrepreneurs know is that the tax authorities only work with 12 cost items for the tax return, while the traditional business accounts system works with a standard of more than 800 cost items. What happens to all other cost items? These are merged into the 12 of the Tax and Customs Administration. So splitting it up is only useful if it gives yourself insight, otherwise it is wasted effort, time and money.

The Chamber of Commerce has standard annual accounts

Traditional accountants quickly turn annual accounts into a book with just over 20 pages. That looks very important, but it has no value at all, provided you enjoy reading it over and over again. The Chamber of Commerce has a standard of the grades that you must deposit. No more and no less. So anything you do beyond the standard is again a waste of time and money.
The traditional accounting method dates back to 1495 and was designed by an Italian monk. This is still the basis of most business accounts

Do it once, do it right

An old slogan, but one that has not yet penetrated the traditional accounting system. In the traditional accounting system, entries are made all year round and all corrections are made at the end of the year. Such as processing depreciation, private use, converting the profit into reserves. It is all duplication of an outdated method. Another disadvantage is that the bookkeeping always lags behind and does not provide an accurate representation of your company during the year.

Computers are there to automate

The traditional accounting method is difficult to automate. Mainly because the traditional accountants do not want to because they want to protect their job and status. But computers are not dumb and have long been able to get around all the drawbacks of traditional business accounts. Smarter, faster, better and more reliable than an accountant can. So that your accounting meets all legal requirements and you understand what it is about and with a minimum of work that you have to do.

Is there another method of business accounts?

Yes, accounting can and should be done differently. With the new accounting method 'Ondernemer Gericht Boekhouding' you as an entrepreneur are again central. This means you meet the requirements of the Tax Authorities, you understand your business accounts yourself, you enter everything correctly and definitively in one go and the reports provide you with real-time information. And… all reports, even the annual report, come out of the accounting system at the touch of a button. Entrepreneur Focused Bookkeeping was invented by Jortt and is suitable for all companies. From freelancer to general partnership, bv and partnership with a turnover of up to 12 million euros per year.

Comments

Popular posts from this blog

The maintenance of community electrical installations

Now more than ever, the electrical installations of our community of owners become an essential element. All the common spaces almost completely, the services we receive and an endless number of devices, work mainly with electricity. In the same way, it seems that the trend is that the vehicles with which we move daily will also have electricity as a source of energy in the near future. Loading vehicles in car parks will be another challenge for the electrical installations of the communities of owners. Importance of electrical installation For this reason, if the electrical system was already important in our communities, it is increasingly so. If we want to live in comfort and safety, and despite the fact that not all communities still agree on the importance of professional electrical installers and scheduled maintenance from time to time, it will be an increasingly recurring element in the maintenance of our communities. Main problems of electrical installations in

How much does a website cost in 2021? Prices, rates and budgets

It seems like a difficult question to answer but in this article we are going to give you the keys and all the necessary data so that you can know how much it would cost to create a professional self-managed website in 2021, with a blog, adapted to mobiles, tablets and what functions it should have in relation to at your price. To understand what quantity a web page costs, you've got to go step by step, especially if you're a non-technical user. We are all accustomed to thinking that the cheapest offer is always best and more affordable options are less functional. Ordering a web site isn't like buying a car or a mobile phone. We are buying a service with which we shall launch our online business. If we use our page for online marketing strategies, advertising campaigns, selling online or getting traffic through search engine optimization it's important that the ads are relevant. What type of website do I need? The best recommendation we are able to provide you

How to keep your workplace safe?

Health and safety measures within the workplace are necessary for the benefit of both employers and employees. As an employer, you have a legal obligation to provide a safe and non-threatening work environment. Unsafe working conditions put your workers at risk and reduce productivity and engagement. If your employees know that they're protected against any unforeseen event or accident, they're going to feel safer and work more efficiently. As a result of this, the productivity of your SME could increase dramatically. Why is safety in the workplace so important? The prevention of occupational risks is a factor that every company must take into account in its policies, regardless of the activity to which it is engaged. Ensuring that your employees work in an environment where they can carry out their activities safely and properly should be a company priority. Maintaining safe working conditions is of great importance, because it not only protects the physical integrity of