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 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
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 It is all duplication of an outdated method.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.