Record-keeping obligation: 9 things to remember

In this article, I summarize nine things to make sure you keep to avoid problems and stress later.

1. Digital Bank Statements from Your Business Account

Most banks allow you to download digital bank statements free of charge for approximately 18 to 24 months. After that period, the statements are usually still available, but the bank may charge a fee to provide them.

To avoid unnecessary costs, download your bank statements regularly, for example once every quarter, and store them safely.

2. Bank Statements from Your Personal Account

In some cases, not only your business bank statements but also statements from your personal account(s) form part of your business records. In cases, when these were used for business transactions, expenses that are only partly business purpose (private phone, private car used for business) or a customer paid you to your private account. If that is the case, you must keep those statements as well.

3. The Calendar on Your Phone, Hour Administration, Km-administration

If you use the calendar on your phone to manage business appointments, that calendar forms part of your business administration and should be retained. When changing phones, make sure your data is properly transferred or backed up so that this information remains available.
Similarly – if you apply tax-deductions based on your business hours or pay out km-reimbursement to yourself or your employees – the administration supporting these needs to be kept for the entire time of the keeping period.

4. Business Emails and Contracts

Business emails are part of your administration and must be retained. Make regular backups of your email accounts and ensure your data remains accessible and available when needed.

Do not forget to also save the signed copies (or email approvals) of business contracts.

5. Till Receipts Of Business Costs

Many receipts are printed on thermal paper, which fades over time. To preserve them, you can number and scan the receipts or make a photocopy and attach it to the original document.

6. Storing Records Digitally

Documents that you receive or create digitally, such as invoices, must also be stored digitally. Many entrepreneurs store these files on a secure USB drive, external hard drive, or cloud storage solution.

If your records are audited, you must be able to reproduce and present these documents in a readable format within a reasonable period of time. Make sure you can always access your data.

7. Create Backups Regularly

Make regular backups of your digital administration, for example every quarter when you submit your VAT return. You would not be the first entrepreneur to experience a computer crash. Don’t forget to back up your business emails and digital calendar as well.

If you use a certified online bookkeeping platform, your data is typically stored securely in the cloud and backed up automatically. However, if you change software or bookkeeper within the 7-year period – make sure to get a full download of the complete audit file, and additionally all bookings reports and attachments saved there.

8. Cash Sales: Keep All Supporting Documents

If you receive cash payments from customers, you must maintain a cash register administration (which is another topic in itself), but to be short: You must also retain all source documents used to create that administration. Examples include detailed cash register reports, cash count sheets, handwritten notes, and similar records.

9. Digital Purchase Invoices Stored in Supplier Portals

Some invoices, such as those from your phone or internet provider, are only available through the supplier’s online portal. Although you can often download them later, access may be limited. If you switch providers, you may even lose access to your historical documents. For that reason, it is a good idea to download these invoices regularly and save them securely in your own digital records.

+ 1 To Remember: When The Keeping Period Starts Or Cases When It Is Extended

The retention period does not necessarily start on the date the document was issued. It starts when the document loses its current business value. See these examples:

• When to start counting the standard 7 years? All documents that support your tax return which you file regarding the previous tax year needs to be kept 7 years from the end of the tax reporting year (not the tax year).
• A 5-year long lease contract needs to be kept until the 7-year holding period expires after the end of the lease period. Which means from signing: 5 years (the lease period) + 1 year (tax return happens in the following year after the last lease period) + 7 years (the standard record keeping obligation)

Sometimes not 7 but a 10-year keeping period applies:

• For transactions related to real estate – a 10 year keeping period applies.
• If you sell goods or services under the One Stop Shop (OSS) scheme in Europe, the records relating to those transactions must be retained for 10 years after the end of the year in which the supplies were made.

Final Tip

Good record-keeping is more than a legal requirement. It helps you stay in control of your business, respond quickly to questions from the Tax Administration, and avoid unpleasant surprises later on.

A little organisation today can save a lot of stress tomorrow.

Frequently Asked Questions