Before you start your business, it’s useful to look at a few figures. You can learn important lessons from them, getting yourself off to a strong start. First, think about the following four key pillars:
Good news: your accurate accounting will help you check, and adjust, these estimates. By carefully analysing your income and expenses, you can make savings and spot opportunities.
Also consider investment plans based on your current situation. Or analyse the possibilities of additional funding. A business loan might be the most appropriate solution, but don’t forget that other funding solutions exist, such as crowdfunding, subsidies or investors.
"}},{"componentType":"sectionTitle","title":"General principles for your accounting"},{"componentType":"paragraph","richBody":{"value":"In your accounts, you systematically keep track of all financial transactions of your business. This provides a clear overview of your income and expenses. It is crucial to follow the rules here, because good accounting records give you all the information you need about the total income and expenses of your business. Apart from that, you have to keep all supporting documents for the required periods. For example, invoices: 10 years.
Small businesses (sole proprietorships, general partnerships and ordinary limited partnerships with an annual turnover, excluding VAT, of less than 500,000 euros) are allowed to carry out all their transactions in simplified accounting, consisting of:
📓 Financial journal - possibly split into cash ledger and bank ledger.
🛒 Purchase ledger with invoices and credit notes from suppliers.
📈 Sales ledger with invoices and credit notes to customers.
📚 An inventory ledger.
You also have to submit certain documents every quarter, such as the quarterly return (we’re talking about the famous VAT declaration) and intra-community declaration (for transactions outside the EU). You also pay social contributions through a social insurance fund and submit a VAT listing: a list of the Belgian VAT numbers of your customers, to whom your company supplied goods or services.
And what about taxes? Owners of a sole proprietorship file a personal income tax return every year (self-employed people also have to fill in part 2). Besides direct taxes, you pay additional taxes, such as municipal tax, provincial tax and environmental tax.
"}},{"componentType":"sectionTitle","title":"And now for the best part: issuing invoices!"},{"componentType":"paragraph","richBody":{"value":"To declare your income, you need supporting documents. Prepare an invoice for sales to individuals or businesses. For private sales under 250 euros, you may also enter it in your sales journal.
But first: are you carrying out an activity subject to VAT? Then you have to take into account the VAT rate that applies. There are different VAT rates depending on the nature of the goods or services provided.
Furthermore, a valid invoice must meet certain obligations and contain specific information such as the (invoice) number, a serial number and a description of the services or goods provided. Above all, make it easy on yourself and use a handy online accounting and invoicing tool such as Accountable.
"}},{"componentType":"sectionTitle","title":"Track outgoings and business expenses"},{"componentType":"paragraph","richBody":{"value":"Good financial management depends on keeping precise track of your outgoings. And that’s important for two reasons. Firstly, you can recover all or part of the VAT for business expenses with the relevant invoices through the quarterly tax return. Secondly, business expenses reduce your taxable income, so you pay less personal income tax.
And the good news is: all outgoings in the context of your entrepreneurial activities are business expenses. For example, smartphone, company car, internet, etc. Social contributions are also a significant cost for your business.
"}},{"componentType":"sectionTitle","title":"Some rewarding tips"},{"componentType":"paragraph","richBody":{"value":"📊 Regularly make time for your bookkeeping and administration
💻 Use digital tools and apps to manage your finances
🔍 Regularly conduct a financial analysis
🏦 Open a business account
With an app for taxes and accounting, such as Accountable, link your bank transactions directly to income or outgoings. This saves time and ensures error-free administration. So don’t worry about the financial management of your business. The right support and handy tools will get you a long way.
"}},{"componentType":"highlight","richBody":{"value":"Do you have any questions or are you looking for additional information?
Dive into ING’s start-up facts and discover the step-by-step plan.
"}},{"componentType":"cta","textLink":{"url":"/en/business/starters/starterspackage-current-account","text":"Set your business up for success"}}]},"complementaryZone":{"flexComponents":[{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Just starting out on your own? Take advantage tax-wise of advance payments","intro":"Find out how to make the most of this.","image":{"transformBaseUrl":"https://assets.ing.com/transform/02a356a2-ec71-4368-b863-5fc2095dd584/Zonder-je-medewerking-kunnen-we-je-beleggingsplan-niet-actualiseren","type":"image","width":5120,"original":"https://assets.ing.com/m/6f7e63df0cad33d8/original/Zonder-je-medewerking-kunnen-we-je-beleggingsplan-niet-actualiseren.JPG","extension":"jpg"},"link":{"url":"/en/business/financing/tax-prepayment-self-starters"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Singular working capital solution","intro":"The ideal solution to bridge an expense or an unexpected short term liquidity need","image":{"transformBaseUrl":"https://assets.ing.com/transform/a71d413f-3989-4d72-bc70-9c437948598d/PORTRAIT-OF-YOUNG-MAN-WITH-ARMS-RAISED-STANDING-AGAINST-BUILDING","type":"image","width":5700,"original":"https://assets.ing.com/m/6883aceae20e2bf5/original/PORTRAIT-OF-YOUNG-MAN-WITH-ARMS-RAISED-STANDING-AGAINST-BUILDING.jpg","extension":"jpg"},"link":{"url":"/en/business/financing/working-capital-singular-business-loan"}}]}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Disclaimer","richBody":{"value":"This article is for information purposes only and the information can change over time. Always consult the latest rules and requirements with the competent authorities. Additionally, seek professional advice before making any decisions. ING Belgium NV cannot be held liable for decisions based on the information provided.
*ING Belgium reworked an article by Accountable for commercial purposes.
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