Small Business Accounting Software That Fills In Your Tax Return
Most accounting software package are used by non accountants often with little or no previous accounting knowledge. Bookkeeping is best in these circumstances reduced to making a list of sales and a list of purchases on preset excel spreadsheets. Each workbook is arranged as 12 monthly spreadsheets with preset columns and uses an entry code letter to analyse both sales and expenditure.
Cash and bank spreadsheets are included as optional extras for those businesses that require them with a built in automated bank reconciliation. The sheet designed to be completed by copying the figures from the bank statement into the bank spreadsheet and the bank reconciliation is achieved by entering the statement total which is automatically checked against the entries made.
Monthly profit and loss account can include a financial health check based upon an automated tax forecast to enable businesses to monitor their financial performance. By entering drawings the package then compares the net profit made with the likely tax liability plus the drawings.
Quarterly vat returns can be generated for vat registered business and should also suitable for non vat registered business. To produce a vat return clients simply go to the vat file and select the quarter end date from a drop down menu and the figures for the vat return are automatically generated.
The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.
The accounting package includes a stand alone sales invoice generator which requires invoices generated to be manually input into the sales sheet.
The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation is automatically calculated with preset percentages that can be changed as required.
The excel templates in the small business bookkeeping software being arranged to automatically generate an excel copy of the self assessment tax return. The excel self assessment tax return being arranged in the same layout as the official inland revenue form with the same box numbers making it easy to copy the figures from one to the other for submission.
Self-employed accounting software based upon single entry of transactions does not produce a balance sheet which is an optional requirement for self employed and therefore not a problem for the vast majority of businesses. Self employed businesses should consider using a limited company accounts package if a balance sheet is required. A limited company accounts package would produce a balance sheet being based not on single entry but on double entry bookkeeping principles.
The small business accounting software is suitable for a single tax year, the latest being 2007-08 and does not cater for accounting periods other than April to April. There are benefits in anyone self employed adopting the standard April to April financial year as this avoids tax allowances from two separate years being a feature of the accounts.
When used by small businesses using the cash accounting system the bookkeeping entries to the sales and purchase sheets must be entered according to the dates money is paid or received rather than the dates invoices were issued. At the end of the financial year any invoices not yet entered require to be listed to adjust the final profit and loss account figures. This a major disadvantage if using the vat cash accounting scheme rather than the accounting software being reviewed.
The product has a stock control feature to monitor any stock losses. The small business accounting software contains a wages interface that fully integrates the with the payroll software when the payroll files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries.
The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return.
As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. Accounting software written on excel spreadsheets also works fine with an Open Source spreadsheet package.
Essential requirements of accounting software for the self-employed should produce a set of accounts for the small business requiring no bookkeeping skills and no previous accounting experience with the desired end product of a fully automated self assessment tax return.
Terry Cartwright is a qualified accountant designing Accounting Software at http://www.diyaccounting.co.uk/.htm providing complete accounting solutions for small to medium sized business in the UK with payroll software at http://www.diyaccounting.co.uk/payroll.htm for up to 20 employees
Simple Company Accounting Software That Produces Final Accounts For Publication
This whole small business accounting software for a limited liability company can be written on excel spreadsheets which means all bookkeeping transactions are visible at the click of a button. Each excel workbook being arranged in 12 monthly worksheets. Prime data entry excel spreadsheets being provided for sales, purchases, cash, bank, savings account and credit card account.
Financial transactions such as sales or expenses are listed on the appropriate month. And should a change be necessary any item can be easily changed. This simple listing process is a definite advantage to non accountants as no previous bookkeeping or accountancy software knowledge is required.
Bank spreadsheets can be entered by listing the items that appear on the bank statement and include a box to enter the statement balance each month. The formulae within the excel spreadsheet then automatically checks that the entries made agree with the statement balance producing effective bank reconciliation. This feature that ensures entries are recorded accurately in the companies accounts.
From the lists of sales and purchases plus the bank statement entries all the information is automatically transferred to the financial accounts file. A trial balance with embedded formulae automating all the double entry accounting transactions. No entries are required from the user removing the need for accounting experience. The trial balance is purely an accounting solution, visible, transparent and contains an audit check to ensure the company accounts are accurate.
The financial accounting software file should contain an automated monthly profit and loss account to enable limited companies to track their financial performance and very important, the package also produces a balanced profit and loss account and balance sheet in the correct format for submission of the final accounts. This set of final accounts automatically gathering the financial information from the basic entries made with the final accounts also including the statutory notes required for a set of company accounts being published.
While quarterly vat returns are generated for vat registered business the accounting package is also suitable for non vat registered business. To produce a vat return clients open the vat returns file and select the vat quarter end date from a drop down menu and the figures for the vat return are automatically generated. The vat calculations can be disabled by non vat registered small businesses by changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.
The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation calculation are also automated being preset with depreciation percentages that can be changed as required.
The limited company corporation tax liability is calculated within the package in such a way that all the calculations; additions and deductions are both automated and visible. Capital allowances on both existing and new assets being shown on the corporation tax calculation.
Accountancy knowledge required
The limited liability company accounting software is based upon single entry of transactions requiring no accountancy or bookkeeping knowledge. All the accounting knowledge required to perform the double entry of transactions which is a required feature to produce a balance sheet automated through the accounting software formulae and linking structure. The company accounts package has a feature so that the figures for the previous year may be entered and lists of opening debtors and creditors recorded. A minimal level of accounting knowledge is required to correctly list the closing debtors and creditors and check the totals of those lists agrees with the automated balances shown on the company accounts balance sheet
Other features
The product has a stock control feature to monitor any stock losses. The limited company accounting software reviewed contained a wages interface that fully integrates the payroll software when the payroll files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries.
The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.
Excel packages can be easier to use than database systems and produce the end products every small limited company requires in a small business accounting software package, automated accounts requiring no bookkeeping skills and no previous financial accountancy software experience with the valuable end product of a fully automated final set of accounts for the limited liability company.
Terry Cartwright is a qualified accountant designing Accounting Software at http://www.diyaccounting.co.uk/ providing complete accounting solutions for small to medium sized business in the UK with payroll software at http://www.diyaccounting.co.uk/payroll.htm for up to 20 employees
Accounting Software Can Be Sophisticated Or Simple But Rarely Both
Accounting software is a system of recording financial transactions on a computer across a full range of accounting options almost invariably dependent upon the size of business being catered for. Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses.
The requirements from accounting software are diverse with the most complex and comprehensive financial accounting packages incorporating financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.
Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.
Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.
The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.
In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Similarly the accounts payable function might be split between the purchasing department, accounts purchase invoice department and a legal function for overdue payments.
Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.
Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.
The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.
In addition to inputting the prime income and expenditure details the most benefit of a database accounting system is the level of financial control the information it contains can provide the company management and financial directorship. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.
Accounting software packages requiring little or no accounting knowledge are available.
Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.
Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.
There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.
Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.
Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.
Terry Cartwright, accountant and CEO at DIY Accounting, designs Accounting Software at http://www.diyaccounting.co.uk/ providing accounting solutions for small to medium sized business in the UK with payroll software at http://www.diyaccounting.co.uk/payroll.htm for up to 20 employees
Internal Auditor Career Options
An auditor could be a person from the accounts department who is trained in internal auditing. Their objective would be to determine the efficiency, adequacy and the effectiveness of the systems in place for internal control. They also review the reliability and integrity of management and ensures compliance with policies, procedures and laws. They help to safeguard the assets of the business. Internal auditors are in complete control of the organization’s computer system, to guarantee the reliability and integrity of the data.
Computers are literally changing the nature of work of the auditors. With the aid of special software packages, accountants are required to submit all transactions in a specific format for financial analysis. These software packages greatly reduce the workload of auditors and now, auditors are performing more technical duties, such as controlling, implementing and developing technology plans and budgeting.
Due to the corporate world taking over the small business market, internal auditing is an excellent career option.
- Public Sector Audit Jobs- Internal Auditors are in great demand in the public sector, where contract jobs, as well as permanent positions are available. To find a job in the public sector, the best way to find a job is through recruitment firms.
- Audit Jobs in Financial Service Firms- If you are looking for a career in a financial service firm, the best thing to do is to look at options that provide you with a combination of services like insurance, financial management and assets management.
- Retail industry Audit Jobs- There is no shortage of work for auditors in the retail industry. From the smallest region to a large metro area, there is an increasing demand for professionals who can identify losses and audit finances.
- Risk Management Jobs- One of the fastest growing opportunities in the Audit and Finance industry is the risk management category. There is always a need for qualified people to assess, identify, monitor and report the risk factors and their effect on the business. Positions are usually found in financial services firms and the headquarters of large companies.
Most auditors work from private offices. Self-employed accountants work from home. Auditors travel frequently to perform audits at various branches of the employing firms. Most auditors work for a standard 40 hours a week, but many work longer hours, particularly if they are self-employed and have many clients.
Some auditors work as college or university faculty, while some are salaried accountants at private industries and even government offices. Internal Auditors must have a Bachelor’s degree in accounting or a Master’s degree in business administration, with a specialization in accounting. Many colleges also offer internship. People pursuing this career should have a flair for mathematics and a high standard of integrity.
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six
sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.