What to look for in a good Accounts Package

Author: Alan Butler

When you are buying any new software, there are always questions to be answered. When you look at the accounts software, you might be looking at the terminology on many boxes wondering what it all means.

There are two things you should look for when buying accounts software: easy of use and price.

Now that does not tell you what else you need, but you do not want to spend hundreds of pounds on an accounting package that you will find difficult to use.

A lot of the features you will need will be common sense.

• Does it calculate VAT? If you are registered for VAT, then you need to have accounts software that can calculate the VAT for you automatically.
• What about changes in VAT rates, will the software automatically be changed to accommodate that? This is particularly useful in recent years when the VAT rate changed from 17.5% to 15% and then back up again.
• Are you involved in the construction industry, do you need to keep a record of all your Construction Industry Scheme (CIS) payment vouchers? Does the software that you are looking at do that for you?
• Is the software easy to use, can you quickly and easily input your data, and then generate all the reports you need?
• How easy is it to make a backup of the data, and can you restore from any point?
• Are you able to know instantly who your debtors and creditors?

These are the types of questions you should be asking when looking to buy an accounts package.

Article Source: http://www.articlesbase.com/small-business-articles/what-to-look-for-in-a-good-accounts-package-1156451.html

About the Author:

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited
5A Darley Abbey Mills
Darley Abbey
Derby
DE22 1DZ
Tel 01332 200 604
Fax 01332 344329
Web Site: Four Software
Email bookkeeping@siteweave.net

Electronic and paper VAT records

As long as your VAT records meet the requirements laid down by HMRC, you can keep them in whatever format - paper and/or electronic - that you prefer. If you do keep all or part of your records on a computer or with a computer bureau, you must make sure that your records are easily accessible to you and to a VAT officer when they visit.

If you upgrade to a new computer system which is not compatible with your old system, you must make sure that the records held on your old system remain accessible for up to six years. If this is not possible, then you must make paper copies.

You can also keep your records on microfilm or microfiche, as long as you have received approval from HMRC and it is easy for VAT officers to view those records when they need to.

Find out what happens and what you need to do when a VAT officer comes to visit you

What is the Right Accounting Software Package For My Business?

By Alan Butler

When you are running a small business, the last thing you want is to have to learn a complicated system for your accounting. Unless you have experience in accountancy or bookkeeping you want an accountancy program that is simple to use but which provides the record keeping and reports that you want.

So, what should you be looking for when you decide to buy accounting software?

You need something that is easy to use - and also easy to understand when you print off the reports.

Have you looked at the different accounting packages around? I have talked to many business people and they all seem to say the same thing, that most accounts software is too complicated to be used by someone who does not understand accountancy.

Many of the major accounting software packages have steep learning curves for the average business person.

"When will someone create a user friendly accounting package?" I can hear you saying.

The good news is someone was listening, and there are simpler, but still effective accounts programs available. They are simple to use, and there is no steep learning curve. They are designed for the non-accountant to be able to keep their own books and records on their computer and produce reports that they can understand.

For the majority of businesses this is probably the best accounting software you can buy. You can often download a free trial version; you can test it out and then purchase it, knowing exactly how it works.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, www.foursoftware.co.uk

Article Source: EzineArticles expert=Alan Butler

Keeping a VAT account

A VAT account is the separate record you must keep of the VAT you charged on your sales and the VAT you paid on your purchases. It provides the link between your business records and your VAT Return. You need to add up the VAT in your sales and purchases records and then transfer these totals to your VAT account, using separate headings for VAT payable and VAT reclaimable/deductible.

You can keep your VAT account in whatever way suits your business best, as long as it includes the following information about the VAT that you:

• owe on your sales
• owe on acquisitions from other European Union (EU) countries
• have to pay on behalf of your supplier under a reverse charge procedure
• owe following a correction or error adjustment
• can reclaim from your business purchases
• can reclaim on acquisitions from other EU countries
• are entitled to following a correction or error adjustment

You must also keep records of any adjustments that you make such as balancing payments if you use annual accounting for VAT.

You can use the information from your VAT account to complete your return at the end of each accounting period. You subtract your VAT reclaimable from your VAT payable, to gives you the net amount of VAT you pay to or reclaim from HMRC.

Unless you are using the cash accounting scheme, you must pay the VAT you have charged customers during the accounting period that relates to the return, even if they have not paid you.

Get information about what needs to be shown in VAT accounts for sales

Get information about what needs to be shown in VAT accounts for purchases

Find out about VAT Returns and paying or reclaiming VAT

Get information about the cash accounting scheme

Use our jargon-busting glossary to help with the basics of VAT

See what a VAT account might look like in VAT Notice 700/21

More about keeping VAT records and accounts in VAT Notice 700/21

Should I Use Computerised Accountancy Packages Or Manual Bookkeeping?

Should I Use Computerised Accountancy Packages Or Manual Bookkeeping?
By Alan Butler

This looks like a simple question that you are asking, and it is - but let us look deeper. How much do you know about manual bookkeeping? Many business people spend hours trying to decide where each invoice or payment should be listed.

Is this a repair and renewal or is it a capital item? Do I need to put this item in sundries or should it have its own heading?

How do I calculate the percent Gross Profit, I know the accountant told me about it, but I did not understand what he was talking about.

It looks so easy when you have a qualified person doing it, but it really is not that easy for the business person who has no training in bookkeeping or accountancy.

Now consider what it will be like when you use accountancy software. You put in your receipts and payments, and the software balances the bank for you. No more manual double entry bookkeeping where the columns do not agree - just allow the accounts program to do the hard work for you.

With accountancy software, you will become the accountant you never thought possible. You will be producing reports for your business. You will remove the sleepless nights, where you had been trying to work through your accounts, because your accounts software is taking the strain for you.

For most business people there is no choice, the computerised accountancy package is the way forward, and you really do not want to be left behind.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, www.foursoftware.co.uk

Article Source

Keeping VAT records

In general, you must keep the following VAT records:

• Records of all the standard-rated, reduced-rated, zero-rated and exempt goods and services that you buy or sell.
• Copies of all sales invoices you issue. Except: if you are a retailer you do not have to keep copies of any less detailed VAT invoices for items under £250 including VAT - unless your customer has asked for a VAT invoice.
• All purchase invoices for items you buy.
• All credit notes and debit notes you receive.
• Copies of all credit notes and debit notes you issue.
• Any self-billing agreements you make as a supplier.
• Copies of self-billing agreements you make as a customer and name, address and VAT registration number of the supplier.
• Records of any goods you give away or take from stock for your private use including rate and amount of VAT.
• Records of any goods or services bought for which you cannot reclaim the VAT, such as business entertainment.
• Any documents dealing with special VAT treatment, such as reliefs or zero-rating by certificate.
• Records of any goods you export.
• Records of any taxable self-supplies you make - for example if you sell cars and you use one of your cars in stock for business purposes.
• Any adjustments such as corrections to your accounts or amended VAT invoices.
• A VAT account, as outlined in the following section of this guide.

Get information about the different rates of VAT

Find out what it means to be exempt or partly exempt from VAT

Get information about sales and invoicing for VAT

Find out about purchases and VAT receipts

Find out about issuing credit notes and reclaiming VAT when customers return goods

Read about self-billing

Get information about reclaiming VAT

More about taxable self-supplies

Keeping business records and accounts for VAT

If you are registered for VAT, you must keep certain business records and VAT records.

You do not have to keep these records in a set way; just so your records:

• are complete and up to date
• allow you to work out correctly the amount of VAT you owe to HM Revenue & Customs (HMRC) or can reclaim from HMRC
• are easily accessible when HMRC visits you - for example the figures you use to fill in your VAT Return must be easy to find

Business records you need to keep include the following:

• annual accounts, including profit and loss accounts
• bank statements and paying-in slips
• cash books and other account books
• orders and delivery notes
• purchase and sales books
• records of daily takings such as till rolls
• relevant business correspondence

In addition to these business records, you need to keep VAT records and a VAT account as outlined in the following sections of this guide.

Get information about sales and invoicing for VAT

Find out about purchases and VAT receipts

Find out what happens when a VAT officer comes to visit you

Find out about VAT Returns and paying or reclaiming VAT

Save time and money using accountancy software

Author: Alan Butler

Time is something most business people do not have enough of. There is always something in a business which will take your time. What about trying to save time by using accountancy software? Have you realized how easy that is to do?

We all know that time is money - so by saving your accountant time you save yourself money.

Take a look at the payments you made last year to your accountant, how high are they? You do know that most accountant work on an hourly rate, and if you telephone them for five minutes you are charged for 15 minutes. Those quick telephone calls soon mount up.

And if they are charging by the hour, how much work is involved in producing your accounts, when you have manual books or no books to give them?

This is about to change. You have bought accounts software, and the reports and records are now perfect. Your accountant has very little work to do, and immediately you have reduced your accountants' costs.

But you will also save a lot of time when you use the software yourself. Instead of spending hours trying to work out what you need to do; you can quickly and easily input your data. The software then generates the reports you need, saving you lots of time.

If you want to save time and money, then you should get your accountancy software today. Start to use it immediately and see how much time and money you can save.

About the Author:

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, Four Software
Email bookkeeping@siteweave.net

Article Source: ArticlesBase.com - Save time and money using accountancy software

Accounts and records for your VAT

If you are registered for VAT, you must keep certain business records and VAT records of your sales and purchases. You must also keep a separate summary of your VAT, called a 'VAT account'.

There is no set way of keeping these records and accounts. In most cases, they can be easily adapted from your normal business records. The main thing is to ensure that they are complete and up to date and that it is easy for VAT officers to access them when you have a VAT inspection.

The link below leads to pages that explain how to go about keeping your business records, VAT records and VAT account and provides links to further information about what you need to do if you are using one or more of the special VAT accounting schemes.

• Keeping business records and accounts for VAT
• Keeping VAT records
• Keeping a VAT account
• For how long must VAT records be kept?
• Electronic and paper VAT records
• VAT and Intrastat records when trading with other EU countries
• Keeping records when you are using VAT accounting schemes
• Sales invoicing and keeping sales records for VAT
• Keeping purchase invoices, receipts and records for VAT
• What happens if you don't keep proper VAT records and accounts?

Move your business forward using Accounts Software

Author: Alan Butler

Have you noticed that there is a lot of doom and gloom in the business world? Companies are losing money so fast it is unbelievable. All we hear about is the recession and peoples' houses being worth less than the mortgage on them. Jobs are being lost and people wonder where they will get the money to pay the bills. But as a business you want to move your business forward and you can by using accounts software.

Think about it for a moment, if you do not know where your business is financially, you will be moving backwards. Now, you might wonder how that can be if you have more sales, and you think there is more money in the bank.

You think, but you do not know. The problem is that a lot of businesses take their bank balance as a sign of how their business is doing. More money in the bank means a healthier business, but that is not true. What it means is you have not spent more money yet. People tend to spend the money they have, and then they realize that money should have been used to pay bills.

When you use an accounts program, you can see the true picture of your business. You will not be relying on your bank statement to tell you how much money you have.

You will be able to print reports which will allow you to move your business forward, which is crucial if you want to survive the recession.

About the Author:

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, Four Software
Email bookkeeping@siteweave.net

Article Source: ArticlesBase.com - Move your business forward using Accounts Software

How might National Insurance and tax affect your business?

Here is an introduction to the different kinds of taxes that you might have to pay - working on your own or in business with others. There is also an introduction to ways of paying less tax.

But before you read on...
...three questions you'll find helpful

As you read about these taxes, you'll find that the rules change a lot according to the answer you give to these three questions:

1. Are you setting up in business as a self-employed individual, or as a company/limited liability partnership?
   
   
2. Will anyone be working for you as an employee?
   
   
3. How much turnover do you expect to have in your first year of business, and how much profit do you expect to make?

If you can answer these questions early on, when you read through the information, you'll find it easier to pick out how the different rules affect you.
...and one tip

Remember - the key to paying no more tax than you need to is keeping proper records.

Get more help from the HM Revenue and Customs web site

Keep Track of Your Money With Accountancy Software

By Alan Butler

You have money in petty cash, in your current account, your deposit account and in the building society. But, do you know how much money is in each account? How can you easily keep track of your money? By using accountancy software!

Are you missing out on interest because you forgot to transfer the money from your current account to your savings account?

You have been charged bank charges this month, because you forgot to transfer that small amount of money from your deposit account to your current account, which would have kept you above the limit for paying bank charges.

Using accounting software you will no longer have a problem knowing which account you need to make a transfer from or to. Account software will let you know to the penny how much money is in each account. You will wonder how you managed before you had an accountancy software package - no more scraps of paper! Referring to your accounts package, you will know before your staff asks for more petty cash, how much they have spent and how much they need.

Every penny counts in a recession and you need to know exactly how much money you are making each day. You need to know when to stop promoting a product because it is no longer making you any money and when to promote one that is doing well.

Now you can know exactly what is happening with your business. You can keep track of your money when you use accountancy software. Do not delay, get your accounting software today and see the difference it makes in knowing how much money you have.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited
5A Darley Abbey Mills
Darley Abbey
Derby
DE22 1DZ

Tel 01332 200 604

Fax 01332 344329

Web Site: www.foursoft.co.uk

Article Source: Ezine Articles

Keep Control of Your Business Finance Using Accounting Software

By Alan Butler

In the past, people hated keeping accounts. It was time consuming, and boring. People would write something in a book, but most of the time it did not mean anything.

Bank accounts were not balanced, because it was not something a lot of people understood. What do you do when you spend money out of the business account and it was for your own use? It was too confusing, that is why you pay your accountant.

That is true, but it also meant that a business person had no idea what the true financial affairs were for their company. Even, if they did have some idea, often it did not make sense to them. They would check their bank balance, and too often the balance showing either told them how much they could spend or how much they owed the bank.

But that has changed now. No longer is accounting a hidden secret, not when you purchase and use accounting software. You see a product that will enhance your business but can you afford to buy it or not? Now you can know exactly what money is available to spend on that product.

You no longer have pieces of paper around your house and office with notes, pay this supplier by a certain date, or chase up that customer if they do not pay by a certain date.

You now have it all automated, as you check your debtors and creditors on a daily basis. Nothing is left to chance. Having accounting software makes you wonder how you ever managed without it before.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited
5A Darley Abbey Mills
Darley Abbey
Derby
DE22 1DZ

Tel 01332 200 604
Fax 01332 344329
www.foursoftware.co.uk
Article Source: Ezine Articles

PAYE for employers: the basics

PAYE (Pay As You Earn) is the system that HM Revenue & Customs (HMRC) uses to collect Income Tax and National Insurance contributions (NICs) from employees' pay as they earn it. The term 'employee' in this guide includes directors of limited companies.

As an employer, you'll have to deduct tax and NICs from your employees' pay each pay period and pay Employer's Class 1 NICs if they earn above a certain threshold. You pay these amounts to HMRC monthly or quarterly. If you don't send the correct amount, or if you send it in late, you may have to pay interest.

Further help from the HM Revenue and Customs Web Site

Information at Your Finger Tips Using Accounts Software

by Alan Butler

Have you ever wanted to get some information and you have to telephone your accountant to get it? Well now, you do not have to wait for your accountant to finish preparing your accounts to get your books back.

The accountant then spends time looking for the information, and finally you get the information you desperately need. The problem is that telephone phone call did not just cost you time, it cost you the amount the accountant has added to your invoice.

No longer do you have to do that. If you use accounts software, then you will be able to go to your computer and immediately get the information needed.

You need to complete your VAT return? Not a problem because the VAT report will be printed for you.

A customer telephones you and wants to get a duplicate copy of their invoice - not a problem because you can immediately find it and print off a new copy.

No more rummaging through boxes of invoices or going through the ledgers to find the items you are looking for. Now, you can do it immediately as you use your accounts software.
You wonder what your bank balance is, and you find that your bank is updating their web site, so you cannot access your account. No problem! You can now find out the exact balance on each bank account. Not the balance at the bank, but the exact balance including all the outstanding checks and banking.

Nothing could be easier as you have every piece of information at your finger tips when you are using accounts software.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalized service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329,
Article Source: Ezine Articles

Good Accounts Packages Don't Have to Be Expensive

By Alan Butler

You've seen the accounts packages for sale, and can you believe the prices of them. Anything from £60.00 to £350.00 but is there anything cheaper on the market?

Yes, there is, you can get good accounts packages for less than £50.00. Search the Internet using search terms such as "cheap accountancy programs" or "download accounts software" and carefully sift though the results.

The best packages are the ones that have all the features you need for your business. Too many packages are expensive, and they don't give you anything more for your money.

You need a package which is simple to use. It should also give you good reports which will save you a lot of money. Why will it save you a lot of money, because with the quality of the records produced, your accountant will have very little work to do?

As the majority of accountants work on a time budget, and they charge you by the hour, the less work they do, the smaller your fees should be.

You don't have to spend more money on services for your businesses anymore. Cheap accounts packages, which do exactly what you need, mean lower accountants' fees. That gives you more money to spend on your family.

Search the Internet for accounts software at a reasonable price that you can download. Test it out, use it for 30 days and see what the results are. You will be amazed at how good reasonably priced software can be, and the way it helps you in the day to day running of your business.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329

Article Source

Foursoftware Accounting Package

Commercial Accounts Software

You can file the following tax returns online using software from commercial suppliers (some of this software is free and some you have to pay for):

• SA100 - Individual Tax Return (also completed if you're self-employed)
• SA800 - The Partnership Tax Return
• SA900 - The Trust and Estate Tax Return (see ‘Filing trust and estate returns online’ below)

The commercial software products also allow you to file some or all of the following supplementary pages online:

• Employment
• Self-employment
• Individual partnership
• Additional information
• Trust income
• Capital Gains
• Non-residence
• Minister of religion
• Lloyd's underwriters

We don't recommend any one particular product or service over another, so you'll have to choose for yourself. When you compare suppliers, you could look at things such as their extra features, ease of use and quality of support.

More help from HM Revenue and Customs

Essential For Any Business - Accounting Software

By Alan Butler

Gone are the days when you could store all your receipts, bank statements and other accounting documents in a box, and then pass them to your accountant at the end of the year. With the financial crisis affecting the majority of the world, you'll need to know exactly the state of your business finances are, and you need to know each and every day. Every day is important, because you need to react instantly to any financial problems you might be about to face.

How do you do this, what is the best way around the problems you are facing?

The easy answer is accounting software. Now you might be thinking, "I don't need any more software, I have a spreadsheet program on my computer, which will do the job." The spreadsheet programs you get with your word processor are good, but they are limited. Unless you know how to put formulae in then you will have no way of reading the data. However, with good accounting software, you will be able to read the data and know instantly the exact position of your company.

Imagine you sit at your computer, key in the data and then press a couple of buttons. Immediately the program does what it has been programmed to do, all the calculations you need. No longer do you need to wait for results; no longer do you need to be running your business blindly. If you want to stay ahead of the recession, then it is essential for your business to have accounting software.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, www.foursoftware.co.uk

Article Source

Cash is King Accounting Software

Can I Try Accounting Software For Free Before I Buy It?

By Alan Butler

Now that is a great question, because how many times in the past have you gone into a computer store and found accounting software, and there it is - shrink wrapped. You have no option but to buy it having read the list of features and benefits, but you have no idea how easy it is to use until you get it home.

But that is something that no longer has to be a problem for you. Imagine finding accounting software, you read the features and benefits, and you think it is a perfect fit for your business. Can you imagine finding great accounting software, and then find you can download it and test it for 30 days. Yes, download and give it a good test drive, check it out for a whole 30 days.

No buying blindly anymore, because you will know exactly what you are getting. You will be able to see how easy it is to use, before you spend any money. Search the Internet for accounting software that you can download and test before you buy it. Often you will be able to create a few accounts as you try the program, then, when you decide the buy the software you can simply carry on. Usually, when you have bought the software, you will be sent an activation code that when keyed in converts the program from a trial version into the full version - no need to download it again.

And finally, some accounts software packages offers free upgrades as the program is further developed, so you are always using the latest version - at no extra cost!

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, www.foursoftware.co.uk/features.html

Article Source: http://EzineArticles.com/?Can-I-Try-Accounting-Software-For-Free-Before-I-Buy-It?&id=2164793

Keeping VAT Records

In general, you must keep the following VAT records:

• Records of all the standard-rated, reduced-rated, zero-rated and exempt goods and services that you buy or sell.
• Copies of all sales invoices you issue. Except: if you are a retailer you do not have to keep copies of any less detailed VAT invoices for items under £250 including VAT - unless your customer has asked for a VAT invoice.
• All purchase invoices for items you buy.
• All credit notes and debit notes you receive.
• Copies of all credit notes and debit notes you issue.
• Any self-billing agreements you make as a supplier.
• Copies of self-billing agreements you make as a customer and name, address and VAT registration number of the supplier.
• Records of any goods you give away or take from stock for your private use including rate and amount of VAT.
• Records of any goods or services bought for which you cannot reclaim the VAT, such as business entertainment.
• Any documents dealing with special VAT treatment, such as reliefs or zero-rating by certificate.
• Records of any goods you export.
• Records of any taxable self-supplies you make - for example if you sell cars and you use one of your cars in stock for business purposes.
• Any adjustments such as corrections to your accounts or amended VAT invoices.
• A VAT account, as outlined in the following section of this guide.

Further Information

Advantages of Accountancy Software

Advantages of Accountancy Software
By Alan Butler

You are running a successful business and the last thing you need is to have to spend hours and hours on your accounts. Maybe, you have a book-keeper who does all the work for you.

What are some of the advantages of owning accountancy software?

If you do hire a book-keeper, then you have immediately made their job a lot easier to do, because it is simple to record all your payments and receipts.

Imagine being able to switch on your computer and immediately being able to see how much money you have in your bank accounts. Also, being able to see how many sales you have had each week/month.

With a few clicks of your mouse you can produce reports that will tell you clearly the state of your business.

If you are VAT registered, no longer do you have to dread completing the VAT returns, because you will have all the figures needed on your reports which you have printed out. Even better, never be concerned that you have forgotten to send your return in, because your software will remind you.

One of the biggest advantages of accountancy software is the peace of mind you will have. No more wondering if you have processed your records correctly, and if you use software you will be able to back up your computer, and then you know if you get either a computer virus or a system crash, you will be able to restore your data.

What price can you put on the advantages of accountancy software? You can't because even though you will pay a low price for good software, you will be getting so many more benefits, that you won't believe the amount of money you have saved.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ,
Tel 01332 200 604, Fax 01332 344329, http://www.foursoftware.co.uk

Article Source

Accounts and records for your VAT

If you are registered for VAT, you must keep certain business records and VAT records of your sales and purchases. You must also keep a separate summary of your VAT, called a 'VAT account'.

There is no set way of keeping these records and accounts. In most cases, they can be easily adapted from your normal business records. The main thing is to ensure that they are complete and up to date and that it is easy for VAT officers to access them when you have a VAT inspection.

This guide explains how to go about keeping your business records, VAT records and VAT account and provides links to further information about what you need to do if you are using one or more of the special VAT accounting schemes.

Help from the Inland Revenue web site

The Importance of Bookkeeping in a Business

By Alan Butler

If you run your own business, no matter what size, bookkeeping is a legal requirement by H M Revenue and Customs.

• Basic records you must keep
• Your basic records will normally include:
• a record of all your sales, with copies of any invoices you've issued
• a record of all your business purchases and expenses
• invoices for all your business purchases and expenses
• details of any amounts you personally pay into or take from the business
• copies of business bank statements

You or your accountant will use these records to create a profit and loss account - which shows the sales income you've received and the expenses you've paid, and what profit/ loss you've actually made. Your tax liability will be based on this.

Other records you must keep

All businesses are different and there are many specific types of detailed records that may need to be kept. Some examples of records you should keep include:

• cash book
• petty cash book
• order notes and invoices
• copy sales invoices
• details of any other business income received
• details of any private money brought into the business
• till rolls or other form of electronic record of sales
• details of any other income
• any cash taken out of the till to pay small business expenses
• bills and invoices for purchases and expenses
• a record of stock on hand at the end of the year
• all bank and building society statements, pass books, cheque stubs and paying-in slips which include details of business transactions

If you do not keep accurate and complete records you may end up paying more tax than is due because of lack of evidence of tax deductible expenditure or/and inaccurate sales records causing H M Revenue and Customs to assess your expected sales . If you pay an accountant to prepare your accounts they will charge you based on how long it will take them. If your records are more accurate this will reduce the time taken and therefore reduce the amount they charge.

The above reasons are sufficient to ensure you keep good books and records but the most important reason is to ensure you have control over your business and that you can assess its profitability and the cash flow situation therefore ensuring you are aware of any potential problems as soon as possible and can make business decisions with all available information at hand.

Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals.

Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, www.foursoftware.co.uk

Article Source: Ezine Articles

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