In short
Every vzw must maintain accounting records. Which accounting a vzw must use depends on its size according to the Company Code (WVV). Small vzw’s may use simplified accounting. Large and very large vzw’s must use double-entry accounting and file their annual report with the National Bank.
Whether you’re treasurer of a sports club, a youth association, or a cultural vzw: accounting is a legal requirement. But which form should you choose? In this article, we explain how you determine if your vzw is small, large, or very large, and what that means for your accounting and annual report.
Does every vzw need to maintain accounting records?
Yes. Every vzw must maintain accounting records and have its annual report approved by the general meeting each year. Even a small association without staff cannot escape this. The difference lies in how detailed the accounting must be.
Small, large, or very large vzw: the thresholds
The WVV categorizes vzw’s based on three criteria, each measured over the closed fiscal year:
- the average number of employees (in full-time equivalents);
- the total receipts, excluding extraordinary receipts;
- the balance total.
A vzw is small as long as it does not exceed more than one of the thresholds. If it exceeds two or more, it is large. Above that, there is the category very large, with additional obligations such as appointing a commissioner. The exact amounts are periodically adjusted, so check the current thresholds in the WVV or with your accountant.
Simplified accounting
Small non-profit organizations (vzw’s) may keep simplified accounting. This consists essentially of a cashbook of receipts and payments per account (cash and bank) and an annual statement of equity. From this, you prepare a simplified annual report according to the legal model. This is filed in the association’s file at the registry of the company court, now digitally via e-griffie.
Many small vzw’s do this in Excel. It works, but the risk of errors is high, and tracking invoices, VAT, and equity quickly becomes unmanageable.
Double-entry accounting
Large and very large vzw’s must maintain full double-entry accounting according to the minimum chart of accounts. Each transaction is then recorded on two accounts (debit and credit). The annual report is filed with the National Bank of Belgium. Even a small vzw may voluntarily opt for double-entry accounting; this provides more insight but requires more expertise.
Annual report, general meeting, and deadlines
The annual report is prepared by the governing body and approved by the general meeting within six months after the end of the fiscal year. After that, you must file it within 30 days. Do not forget to correctly draft and keep the minutes of the general meeting.
VAT and vzw’s
If your vzw engages in economic activities, it may be subject to VAT. Many small vzw’s fall under the exemption scheme for small businesses and do not need to file periodic VAT returns, but they may still need to submit an annual customer listing. Confirm your situation with your accountant.
Offacto vzw: your complete vzw accounting, offline
That’s why we built Offacto vzw: an app for Mac and Windows that handles your vzw accounting locally, without your data leaving your computer. You record and scan invoices, prepare VAT returns and customer listings in Intervat format, and the tool automatically generates your annual report according to model A, B, or C, with a warning if your classification is at risk of changing. You can also prepare the minutes of the general meeting ready for signing. You can try it for 30 days free.
Does your vzw prefer working in the cloud? Recognized vzw’s get a 50% discount on Offacto Advanced. Discover also what Offacto automates.
Try Offacto for free or request Offacto vzw.
Frequently Asked Questions
Does a small vzw need to use double-entry accounting?
No, a small vzw may keep simplified accounting. Opting voluntarily for double-entry accounting is allowed.
Where do I file the annual report of a small vzw?
At the registry of the company court, in the association’s file, digitally via e-griffie. Large and very large vzw’s file their reports with the National Bank.
When must the annual report of a vzw be approved?
Within six months after the end of the fiscal year, by the general meeting. After that, you must file it within 30 days.
Can I do my vzw accounting in Excel?
For simplified accounting, Excel may suffice, but a specialized tool reduces the risk of errors and automatically prepares annual reports and returns.
Does Offacto vzw replace my accountant?
No. The tool prepares everything, but it’s best to have your annual report and tax returns reviewed by an accountant.
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