A number of questions are asked by clients either before purchasing or after downloading the accounting software. Many of these questions and the answers are the same the most typical of which are produced here.
Why is the monthly profit and loss account not updating from the sales and purchases entered.
Updating the profit and loss account in the financial accounts file is automated. If the financial accounts file is not updating automatically the links from the sales accounting spreadsheet and or the purchase accounting spreadsheet are not working. This may be because the file names have been changed which breaks the links between the files.
The most common reason is the way the files were originally saved when initially downloaded from the website by opening the files first before saving them. When a file is opened first before saving the computer stores that file in a temporary internet folder and changes the links to temporary links within that temporary folder.
When that file is then saved it is those temporary links which are being saved and not the original links. Those temporary links would not be recognised by the other files which form the link structure. The solution is to delete the files and save the files again direct to your accounts folder without opening them first thereby preserving the original links.
Accounting entries on sales and purchases appear on the profit and loss account but do not appear on the list of expenses on the self employed tax return.
The self employed tax return required to be completed in the UK is dependent upon the sales turnover. Small business with total sales income exceeding 64,000 pounds for the financial year ending 5 April 2008 are required to complete the full self employed tax return while businesses with a turnover under 64,000 pounds may complete the short version of the self employed tax return.. Coincidentally the threshold is the same as the vat threshold.
In addition if the sales income is less than 30,000 pounds then it is not necessary to complete all the individual expense classifications. The excel formulae within the financial accounts file automatically fill in the short or full tax return and only fill in the detailed expense classifications if required to do so.
Does the package produce my quarterly vat returns when a vat flat rate scheme is being operated.
The user guide contains notes on how to enter the value added tax flat rate percentage on the sales bookkeeping spreadsheet. The bookkeeping single entry of the flat rate vat percentage on the sales sheet updates throughout the package including the subsequent months on the sales sheet and also each month on the purchases bookkeeping spreadsheet automatically calculating value added tax at the flat rate percentage and expenses value added tax paid on purchases at the zero vat rate producing a quarterly vat return.
Does the self employed accounting software package produce a balance sheet.
Producing a balance sheet is optional for self employed small business and not an essential requirement of completing the self employed tax return. The self employed package is based upon single entry bookkeeping and does not produce a balance sheet which requires double entry bookkeeping while the limited company package does produce a balance sheet as it is a legal requirement for a limited liability company.
As the self employed accounting software includes sales and purchase spreadsheets and also cash and bank spreadsheets it is possible to manually produce a balance sheet if required but the accounting software does not produce it automatically.
Do I purchase a new software package each financial year or can the accounting software be updated for more than one year accounts.
As the accounting software and payroll packages include the current financial year tax rules that enable the financial packages to automate the production of that years tax returns then each year has new tax rules embedded and being on excel rather than an accounting database then it is necessary to purchase a new accounting or payroll package each year.
Related Articles
DIY Accounting Self Employed Accounting and Tax Return Answers
By: Terry Cartwright | 21/05/2008 | Finance
DIY Accounting small business accounting software package is a series of accounting templates written on excel accounting spreadsheets, suitable for UK self employed business whether producing an automated monthly profit and loss account and self employed tax return form. These notes detail the typical questions and answers by clients.
Who Should Use the New Self Employment Tax Returns in the UK
By: Terry Cartwright | 02/05/2008 | Finance
HMRC published new self employment tax returns in April 2008 to replace the previous self assessment tax returns for self employed business in the UK. The self employment tax returns are applicable from the financial year ending 5 April 2007. Similar to the previous self assessment forms the new tax returns are in two versions, full and short returns, dependent upon the level of sales income.
Product Review Small Business Accounting Software
By: Terry Cartwright | 30/10/2007 | Business
DIY Accounting small business accounting software UK package is a series of templates written on excel spreadsheets, suitable for any self-employed business whether vat registered or not producing an automated monthly profit and loss account and an excel copy of the self assessment tax return form as the end products.
Small Business Accounting Software Can Improve Business Performance
By: Terry Cartwright | 29/11/2007 | Business
A talented entrepreneur may have all the skills in the world but only achieves the desired level of financial performance by paying acute attention to the profitability of the business. Small business accounting software is a vital management tool to broaden the management function to include accounting and finance and improve business performance.
Cost Accounting for Profit With Accounting Software
By: Terry Cartwright | 13/06/2008 | Finance
Small business often accepts business expenses as inevitable and while some effort is usually made to keep expenses down it is often done without reference to the accounts. Maintaining a regular system of bookkeeping using suitable accounting software can assist the cost accounting for profit exercise by providing the source and extent of the actions to be taken.
Selecting Small Business Accounting Software
By: Fred Jones | 26/03/2007 | Management
If you are a small business owner, you either have an accountant or you are an accountant. Either way, choosing the right accounting software is an important business decision. Some of the most important brands include Quickbooks and Peachtree.
Here are some of the important features to look for:
Adaptability: Small businesses...
Accounting Software Can be a Bonus not a Burden
By: Terry Cartwright | 06/01/2008 | Business
Big business uses the financial function and accounting software to analyse and improve financial performance through financial control and the exploitation of opportunities. Small business has a serious problem of viewing accounting software as an administrative headache for annual tax purposes missing the valuable opportunities the financial system can provide.
Using Tax Accounting Software to Produce Self Employed Tax Returns
By: Terry Cartwright | 30/08/2008 | Finance
Tax accounting software for self employed accounts involves accounting software to produce the accounts combined with tax software to produce the self employed tax returns and tax liability.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Taxes Articles
What is an Enrolled Agent?
By: Christy Pinheiro, EA | 04/09/2008
"Enrolled Agent" (EA) is a tax professional who has passed an IRS test covering all aspects of taxation, plus passed an IRS background check. An enrolled agent is a person who has earned the privilege of practicing, (representing taxpayers) before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before.
Estate Taxes
By: Patrick C. OConnor | 03/09/2008
Estate taxes are often referred to as the death tax. Few Americans are subject tp estate tas due to the exclusion on the first$2,000,000 of an estate (2006,2007, and 2008). Taxpayers with estates substantially in excess of this amount should consider planning to minimize estate taxe. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes.
Roni Deutch Tax Center Reviews® the History of the Irs
By: Roni Deutch | 02/09/2008
Dating all the way back to the Civil War Era, the IRS has always been the backbone of the US economy. The way the IRS handles the cash flow and tax system directly affects all of our lives. To better understand this important and debatably useful organization, please enjoy this brief history of the IRS from the Roni Deutch Tax Center.
How to Resolve Owed Back Taxes Through the Taxpayer Advocate Service
By: Roni Deutch | 02/09/2008
If you have been working with the IRS to settle your tax liabilities and think that you have been treated unfairly then you may be able to request the assistance of the Taxpayer Advocate Service.
"underground Regulation" is Main Basis to Deny Tax Exemption
By: Joseph F.R. Micallef | 02/09/2008
The Board of Equalization has relied upon a memorandum which explains "first functional use" as a basis to deny the sales and use tax exemptions for aircraft, vessel and vehicle purchases.
Be Smart When Buying an Aircraft
By: Joseph F.R. Micallef | 02/09/2008
When purchasing an aircraft you must be aware of the sales and use tax implications. There are many exemptions available. However, if you do not follow the form and substance of the law properly, you will owe the sales tax.
3 Reasons Why You Want Should not Have Your Trust as Beneficiary of Your Ira?
By: Joseph J. Dadich, CPA, Esq., LLM | 02/09/2008
If you have an IRA/retirement plan (401k, etc) you need
to be aware of the reasons why you don't want your traditional trust as a beneficiary. The costs and taxes are devastating. Further, you have ZERO asset protection for your kids/loved ones named as beneficiary's. So what can you do? Find out about our IRA Trust to prevent these disasters...
The Benefits Of Offshore Banking
By: Gregory Smyth | 02/09/2008
Offshore banking is now connected immediately in people's minds, thanks to Hollywood movies, as something that you only do if you are trying to break the law. However, offshore banking in countries like Singapore, Switzerland, the Channel Islands and Bermuda can save substantial amounts of money, for individuals and businesses, and offshore banking advisors can help immeasurably.
Finance 
