How to choose the right Ledger

Picking the right ledger for your financial booking is important. Not alone gives it insights in how your costs are distributed over all categories, but also does it determine how tax deduction for that booking is calculated. Here’s examples that help you choose the right ledger.

Ledger selection

When adding an invoice you can select the right ledger through the dropdown in the form. We added descriptions to the items in the dropdown, so that picking the right ledger becomes easier. Also, we wrote down the full list of ledgers for your convenience.

Examples that help you select the right ledger

Here’s some examples to help you select the ledger that is most fit for the invoice you are adding.

Costs for furnishing of your holiday home

You probably bought quite a lot of Furniture and Appliances when the keys to your property were handed to you. And, you had to buy plates, cups, pans, cutlery and other Inventory. These kind of costs can be booked on the ledger “Furniture, Appliances and Inventory”.

The Furniture, Appliances and Inventory ledger is a write-off ledger. This means the costs associated are written off over multiple years. Although you had to pay the full amount for these things to get them, you can only deduct a small amount per year (usually 10%) for your income taxes.

Here are some products you can think of that would need this specific ledger.

Purchasing costs when you bought your property

Costs associated to the purchasing of the property need to be on the ledger “Property purchasing costs”. These costs do impact your cash flow, but they are not deductible. At least, not until you decide to sell the property. At that moment, these costs can be deducted of of the potential profit (sale price minus total purchasing price + costs).

Here are some examples of costs that belong on the Property purchasing costs ledger.

Costs directly relatable to holiday bookings

Some costs can be related directly to holiday bookings, such as cleaning after a guest leaves. These costs are fully deductible.

Here are some examples of costs that belong to the “Maintenance and services (for renting out)” ledger.

And here are some examples of costs that belong to the “Services (per booking)” ledger.