Bookkeeping in Excel as a freelancer: is it allowed, and where does it pinch?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
The law prescribes no bookkeeping software: a spreadsheet suffices as long as your records are complete and verifiable and you keep invoices and receipts digitally for seven years.
- Five tabs are enough: sales, purchases, bank, investments and hours.
- Create a separate column per VAT rate, otherwise you cannot split out your return.
- An Excel file does not replace the invoice or receipt; keep those digitally in the format you received them.
- With several VAT rates, stock, staff or e-invoicing a spreadsheet runs out of road.
Many freelancers start with a spreadsheet: a tab for turnover, a tab for costs, and a sum for the VAT at the end of the quarter. That is not an embarrassing stopgap, because nowhere does the law require you to use software. What the law does require is records that show your rights and obligations and from which an inspector can derive the VAT and the profit within reasonable time. This article explains how to achieve that in Excel, where spreadsheets structurally go wrong, and when switching becomes the cheaper choice.
What the law does and does not require
The tax authorities do not approve bookkeeping packages and do not ban spreadsheets. The requirements concern the content: your records must be complete, verifiable within a reasonable period, and you must keep them for seven years (ten years for data on immovable property). Data you receive digitally must be kept digitally: a receipt that arrives as a PDF may not be printed with the PDF then thrown away. See the retention obligation and keeping receipts and invoices digitally.
A spreadsheet is therefore a tool for adding up, not a replacement for your documents. The invoices and receipts themselves remain the basis; the file only proves how you get from those documents to your return. Anyone with only rows in Excel who can no longer produce the underlying documents has a list, not a set of records.
The tabs you need at minimum
A workable setup for a service-based freelancer has five tabs. More is fine, fewer becomes difficult, because you then mix data you will later need separately.
| Tab | Columns you need | What for |
|---|---|---|
| Sales | date, invoice number, client, amount excl, VAT rate, VAT, total, paid on | Turnover, VAT payable, outstanding items |
| Purchases and costs | date, supplier, description, amount excl, VAT, category, private share | Costs, input VAT, deduction limits |
| Bank | date, debit or credit, amount, counter account, linked to invoice | Reconciling with your bank balance |
| Investments | date, asset, purchase price excl, annual depreciation, residual value | Depreciation and investment deduction |
| Hours | date, client or activity, number of hours, type (direct or indirect) | The 1,225-hour criterion |
VAT per rate, not in one column
Create separate columns for 21 per cent, 9 per cent, zero per cent and reverse-charged VAT. Your return asks for exactly that breakdown, and reconstructing afterwards which rate was in a single column is drudgery. If you buy abroad or receive invoices from Google or Meta, add a column for VAT you must declare yourself and deduct again straight away.
The four mistakes that do not survive an audit
Spreadsheets rarely fail on the formulas and almost always on discipline. These are the four we see most often with clients who switch over.
- No reconciliation with the bank. Your turnover and costs add up on paper, but the balance on 31 December does not match your bank statement. Without that check something is guaranteed to be missing: a cash payment, a credit note or a duplicate entry.
- Invoice numbers that are not consecutive. A gap or a duplicate number immediately raises questions. Follow the rules for invoice numbers and number continuously across the year boundary or per year, but always without gaps.
- Private and business mixed together. A private withdrawal is not a cost and a deposit is not turnover. In Excel that difference is invisible unless you build it in yourself. See private withdrawals and deposits.
- Overwriting the file. A single version that everyone edits means last week's error can no longer be traced. Keep a frozen copy per quarter, preferably as a PDF too, and continue in a new file.
Worked example: VAT return from your spreadsheet
- Turnover at 21% from the Sales tab
- € 18,400 excl, VAT € 3,864
- Turnover at 9% (teaching materials, say)
- € 1,200 excl, VAT € 108
- Input VAT from the Costs tab
- € 1,145
- Payable (box 5c)
- € 2,827
Result: Then check whether 21 per cent of your 21 per cent turnover really equals the VAT total you added up. If it differs, a rate is wrong somewhere
When Excel is enough and when it is not
Excel works fine as long as your situation is straightforward: few invoices, one bank account, one VAT rate, no stock and no staff. As soon as something is added, the time a spreadsheet saves is lost to manual work and checks.
| Situation | Excel is enough | Software is better |
|---|---|---|
| Invoices per month | up to about ten | more, or with subscriptions |
| VAT rates | one rate | several rates, reverse charge, cross-border |
| Stock or work in progress | none | yes |
| Chasing debtors | manually, a few clients | automatic reminders |
| Staff or subcontractors | none | yes |
E-invoices: the quiet reason to switch
A PDF from Excel is not an e-invoice. A real e-invoice is a structured file that your client's software can read by itself. If you work for government bodies that is already the norm, and the obligation will expand in the coming years. Read what that means in e-invoicing and UBL. For many freelancers that is the moment the spreadsheet ends.
Frequently asked questions
Am I really allowed to do my bookkeeping in Excel?
Yes. The tax authorities set requirements for the content of your records, not for the program. As long as your records are complete, verifiable and kept for seven years, and you keep the original invoices and receipts digitally, a spreadsheet meets the bar.
What happens in an audit if I use Excel?
The inspector asks for your file plus the underlying invoices and receipts, and checks whether the returns follow from them. If you can show that link, there is no problem. Read what to expect in a tax audit.
I have cash turnover. Can that go in Excel?
Yes, but then you need a separate cash tab with daily sheets recording cash receipts and payments per day, where the cash balance never turns negative. See cash records with physical money.
When is switching to software worth it?
Do the maths with your hourly rate. If your records take four hours a month in Excel and drop to an hour and a half with a 15 euro package, at a 60 euro rate you earn that back many times over. See also choosing bookkeeping software.
Sources
- Setting up your recordsBelastingdienst · belastingdienst.nl
- How to keep your recordsBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
