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.
Many successful offline home based businesses need to grow in order to survive. Indeed most owners of the successful offline business are always on the lookout for ways to grow the business and to make even more profits. One very possible way of doing this is to go online. Using the Internet to build your business is always a viable possibility. Certainly if you have been successful offline there is no reason why you shouldn't be even more successful having your business go online.
If you have a successful offline business chances are that you already have a very good local customer base that provides you with most of your business. Using this local customer base is a great way to expand your home based business beyond the local area into a wider community including a worldwide community of prospective customers. This will enable you to go beyond what you might otherwise consider a ceiling to your business.
While you are building your wider customer base, being online can be a real advantage to your local customer base. Being online enables your customers more freedom in finding out more about your business and going about purchasing your goods and/or services. So what are the First Steps?
Firstly, you need to decide if going online is right for you. Weigh up what the advantages of going online might be. What is your current customer base? Will your customers receive any further benefit by you going online? Will it make them easier to contact you or to buy your products? Will being online enable to contact your customer base more easily and let them know what products you have available? Will being online enable you to attract more buyers who are not local? Are you interested in selling your services and products to people outside your local community? Will you be able to properly service having an increased customer base? Will you need to take other resources or employees to assist your expanding business? Will it be worth it in the long run?
Secondly, you need to decide if you are going to maintain a website. Although most online home based businesses have a website this is not imperative. There are many who market their products online without having their own website. For example you may use the internet for advertising purposes only. You might be able to gain affiliates who will do your marketing online for you. If you decide to maintain your own website then you will need to work out how to get your website up and running. Are you going to create your own website?
This is actually a lot easier than you think. You might have to buy a website creator tool or you might decide that you will simply hire a website developer to create and get your website running for you. Although this may be expensive it may also be well worth the money.
Thirdly, if you have put your own website together either by yourself or with hired help, you will then need to have a web host. There are many good web host sites on the market. They vary in price and service. Be careful in your choice. Search the internet for a good web host, by reading what other people are saying and looking at their websites to decide if they are doing a good job and providing adequate service.
Maybe you can ask others you know who already have the site hosted. You will also have to take on a good Internet service provider.
Fourthly, decide how you are going to promote your home based business. Gain knowledge of Internet advertising and finding free places to get your business known. Perhaps the best advertising agents are Google and yahoo. although they are by no means the only adversting sources. Actually you have to be careful with your advertising budget. It is very easy to advertise in the wrong places or in the wrong way, leading to a considerable waste of money.
Personally I recommend article submissions. By this I mean writing articles of 300 to 500 words in your chosen field and giving them to article sites for publication. These articles then generate what is referred to as links to your site. Other people also read them and may click to your site. They do this by locating your details at the bottom of an article in what is referred to as the author's box or resource box.
No matter what way you decide to take your home based business it is very important to do research in to possibilities. Fortunately there are many educational or informative websites on the Internet. However be careful in doing this. Some webmasters can ask for an inordinate amount of money to become a member of their site.
Generally I have found that obtaining information freely is quite possible without paying for these. However there are some specialist sites that provide very good information and educational material and these are worth paying money for that extra knowledge and guidance. It is also important to avail yourself of a wide range of internet resources.
Both Terry Cartwright & Amanda King are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Terry Cartwright has sinced written about articles on various topics from Payroll Accounting, Tax Software and tax. Terry Cartwright, a qualified accountant in the UK, designs both on excel spreadsheets and. Terry Cartwright's top article generates over 90500 views. to your Favourites.
Amanda King has sinced written about articles on various topics from Blogging is, Jewelry and Business and Finance. Amanda King operates a website. Obtain a free copy of the s. Amanda King's top article generates over 49500 views. to your Favourites.