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?