Chart of accounts (rekeningstelsel)
A chart of accounts (rekeningstelsel) is the ordered list of ledger accounts a business uses for its bookkeeping.
What does chart of accounts (rekeningstelsel) mean?
A chart of accounts (rekeningstelsel) is the ordered list of ledger accounts a business uses for its bookkeeping.
A recognisable structure helps with reporting and review. The RGS can serve as a reference, but the company-specific account still has to be mapped in substance to the right annual accounts line item.
How does it work?
The chart of accounts (rekeningstelsel, often called rekeningschema) determines on which accounts the bookkeeping records entries. The law prescribes no numbering or structure. art. 2:10(1) DCC only requires the bookkeeping to be kept so that rights and obligations can be known at all times, as the nature of the activities demands.
Many Dutch charts follow a decimal structure, with for example category 0 for fixed assets and equity, 1 for receivables, liabilities and bank, 4 for costs and 8 for turnover. Each account is a balance sheet account or a profit and loss account. For data exchange it also receives a code from the Reference Chart of Accounts (Referentie Grootboekschema).
Example
A service-providing BV works with twelve accounts. Balance sheet: 0100 equipment € 12,000, 0500 share capital € 1,000, 0600 other reserves € 21,000, 1100 bank € 18,000, 1300 accounts receivable € 9,000, 1600 accounts payable € 4,000, 1700 VAT payable € 3,000. Result: 8000 turnover € 100,000, 4000 salaries € 60,000, 4300 rent € 12,000, 4500 other costs € 15,000, 4900 depreciation € 3,000. Profit: 100,000 − 90,000 = € 10,000. Balance check: assets 12,000 + 18,000 + 9,000 = € 39,000; liabilities and equity 1,000 + 21,000 + 4,000 + 3,000 + profit 10,000 = € 39,000.
In the annual accounts
Bookkeeping basis for the balance sheet and P&L.
Difference from the general ledger
The chart of accounts is the list of accounts, without amounts; the general ledger is that same list filled with all entries. You design the chart once, the ledger grows with every invoice. An error in the chart, such as one account for both rent and energy, therefore carries through into every report you make later.
Common mistakes
- Treating the account number as a legal standard
- Creating a new account without a mapping
What to watch for
- Give each account one purpose; a ‘miscellaneous’ account with a large balance still has to be broken down at year-end closing.
- Link each account to an annual accounts line item. A micro entity is fine with the line items of art. 2:395a(4) and (5) DCC; medium-sized and large entities need accounts for every line item of art. 2:377(3) or (4), such as wages and social security charges separately.
- Do not change numbers halfway through the year: the comparative figures of art. 2:363(5) DCC require a line item that means the same thing over two years.
Legal basis and sources
art. 2:10 DCC
Frequently asked questions
Is a chart of accounts required by law?
Not a particular one. What is required is bookkeeping from which rights and obligations are apparent at any time (art. 2:10(1) DCC); without ordered accounts that is not possible.
How many ledger accounts does a small BV need?
Enough to fill each line item of the balance sheet and profit and loss account separately and to support the VAT return. More accounts do not make the bookkeeping more accurate, only more laborious.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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