Ledger accounts: a chart of accounts that works for freelancers
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
A ledger account collects similar amounts; in the Dutch decimal system costs sit in the 4000 range and turnover in the 8000 range, and twenty accounts usually suffice for a freelancer.
- Every entry touches at least two accounts: that is the principle of double-entry bookkeeping.
- Split your turnover accounts per VAT rate and your VAT return becomes copying rather than calculating.
- A private withdrawal is not a cost but a reduction of your equity.
- Check each quarter whether suspense accounts are at zero and whether your VAT accounts match your returns.
Open a bookkeeping package for the first time and you face a list of hundreds of ledger accounts with numbers that seem to mean nothing. Yet there is a simple logic underneath, and for a freelancer twenty accounts is usually enough. This article explains what a ledger account is, how the classic numbering works, which chart works for a freelancer and which entries most often go wrong.
What is a ledger account, really?
A ledger account is a category in which you collect similar amounts: all turnover on one account, all fuel on another, your bank balance on yet another. Together those accounts form your general ledger, and the list of accounts you use is your chart of accounts. Total all the accounts at the end of the year and your balance sheet and profit and loss account roll out automatically.
Every entry touches at least two accounts, because there is always something on the other side: a payment lowers your bank and raises a cost item. That is the whole principle of double-entry bookkeeping. You do not have to do it by hand (software handles it), but you do need to know where something belongs, because that choice determines your profit and your VAT.
One invoice, three accounts
- You send an invoice of € 605 including VAT
- accounts receivable + € 605
- Of which turnover
- € 500
- And VAT payable
- € 105
- Client pays three weeks later
- bank + € 605, receivables - € 605
Result: Your turnover sits in the month of the invoice, not the month of payment. That difference is exactly why profit and bank balance never match
The numbering: why 4 means costs and 8 means turnover
Most Dutch charts of accounts follow the decimal system, in which the first digit sets the type. That explains why your costs sit in the 4000 range and your turnover in the 8000 range. You may deviate, but if you work with a bookkeeper or ever switch packages, the standard layout saves a lot of sorting out.
| Group | What for | Examples for a freelancer |
|---|---|---|
| 0 | Fixed assets and equity | laptop, van, fixtures, private withdrawals |
| 1 | Cash and receivables | bank, cash, receivables, payables, VAT |
| 2 and 3 | Suspense accounts and stock | transfer accounts, stock of materials |
| 4 | Costs | insurance, car costs, software, depreciation |
| 7 | Cost of sales | materials purchased, work subcontracted |
| 8 | Turnover | turnover 21%, turnover 9%, turnover reverse-charged |
A workable chart for a freelancer
Start small. Twenty accounts cover the records of most sole proprietorships, and you only add an account once you have met an item three times and want to track it separately. Too many accounts is as harmful as too few: you start doubting where things belong, book the same kind of cost somewhere different each time, and then your annual figures no longer compare with last year.
- Assets: bank, reserve account, cash, receivables, fixtures, vehicles.
- Liabilities: payables, VAT payable, input VAT, accrued costs.
- Equity: capital, private withdrawals, private deposits.
- Turnover: one account per VAT rate, plus one for reverse-charged or foreign turnover.
- Costs: purchases and materials, subcontracted work, car costs, travel, software and subscriptions, insurance, office costs, marketing, training, depreciation.
Four entries that often go wrong
A private withdrawal is not a cost: money you transfer to your private account lowers your equity, not your profit. Buying a 900 euro laptop is not a cost but an asset you depreciate. A paid income tax assessment is private and does not belong in your costs. And a client's down payment is not yet turnover; you book it as a deferred amount until you have delivered.
Maintenance: tidy up once a quarter
A chart of accounts decays. Duplicate accounts creep in, a suspense account keeps a balance that should not be there, and a 'miscellaneous' category quietly grows. So at each quarterly round check three things: is there still a balance on suspense accounts, does the balance of your VAT accounts match what you declared and paid, and are there costs in 'general' that you would rather track separately.
At year end your chart of accounts is the basis for your year-end close. Accounts that still hold an unexplained balance then produce exactly the questions you can no longer answer in January. Resolve them in the month they arise. If you understand the two sides of an entry, you see such a balance coming; see debit and credit explained.
Frequently asked questions
How many ledger accounts do I need as a freelancer?
Twenty is often enough: a handful for assets and liabilities, a few for turnover per VAT rate and ten to twelve cost accounts. Only add one when you genuinely want to track an item separately.
May I invent my own numbers?
Yes, the numbering is not prescribed by law. Stick to the decimal system anyway and any bookkeeper will understand your records immediately, and switching software goes more smoothly.
What is the difference between a general ledger and a daybook?
A daybook is the entry point (sales book, purchase book, bank, cash) where entries arrive; the general ledger is the result in which everything is collected per category. The same entry appears in both.
Does my chart of accounts change if I start a private limited company?
The main layout stays the same, but accounts are added: director's salary, current account with the company, corporate tax and dividend. Private withdrawals, by contrast, disappear.
Sources
- Setting up your recordsBelastingdienst · belastingdienst.nl
- Keeping records: seven yearsBelastingdienst · 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.
