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

Accounting Software

Whether you should or shouldn't buy Accounting Software - and which one to buy if you do choose to buy it - is a minefield. This Blog will present information about accounting software which will help you to make both these decisions.

Most of the information made available is taken from Article Publishing web sites.