Finance and Bookkeeping

"Creativity thrives best with oversight."

Why is this important?

Many creatives find money matters difficult or boring. Understandable. But when you have a grip on your numbers, you can:

• Make better choices
• Set smarter prices
• Prevent problems (like fines or tax stress)
• Make a profit and keep creating

Bookkeeping is not a goal in itself, but it is the foundation of a healthy business.

The most important things to have in order

1. Track income and expenses

Use accounting software (like Moneybird, e-Boekhouden.nl, Jortt) or work with Excel. Make sure you:

• Store all your income and invoices
• Keep all your costs and receipts
• Clearly see what you have left (profit = revenue - costs)

Tip: Don't immediately count money you receive as "income" – you still have to pay taxes.

2. VAT (sales tax)

Most freelancers must pay VAT quarterly. This means:

• You charge VAT (usually 21%) on your invoices
• You can deduct VAT on business expenses
• You file a return every quarter via the Tax Authority

Note: Earning very little? You may be able to use the Small Business Scheme (KOR) – you don't have to charge or pay VAT, but you also can't reclaim VAT. Check this carefully at belastingdienst.nl.

3. Income tax

At the end of each year, you file income tax returns. You pay tax on your profit. As a self-employed person, you usually get:

• Entrepreneur's deduction (self-employed deduction + starter's deduction)
• SME profit exemption

These schemes lower your taxes, but you must meet requirements (such as working at least 1,225 hours per year on your business).

4. Determining your hourly rate

Many creatives underestimate their price. Think not only about your 'working time', but also about:

• Preparation and administration
• Equipment and software
• Insurance and taxes
• Unpaid days (illness, vacation, no assignments)

Example: You want to earn €2,500 per month, you want to bill 60% of your time. Then you should charge approximately €45 per hour.

5. Building a buffer

Make sure you always have money on hand for:

• Taxes
• Lean months
• Unexpected costs (e.g., broken laptop)

Practical rule of thumb: Set aside about 15%-20% of each amount received in a separate savings account.

6. Accountant: yes or no?

• Do it yourself: if you have little administration and are good at it
• Hire an accountant: if you've lost track, want help with deductions, or just want more peace of mind

Many freelancers work with an accountant who does VAT quarterly and the tax return at the end of the year.

Practical tip

Jonas, animator:
"I did everything myself in Excel, until I got a fine because of a mistake. Now I use a simple accounting program that links with my bank – it saves so much hassle."

Checklist: Creative bookkeeping without stress

• Track all your income and expenses
• Make sure your invoices meet the requirements
• File VAT returns on time (or register for KOR)
• Set tax money aside
• Think about your pricing and reserves
• Consider an accountant (especially in the beginning)

Bookkeeping is not something you do "on the side" – it's part of professional entrepreneurship. With a little structure, there's more room left for what you love most: creating.