DIY Accounting Small Business Accounting Software Questions And Answers

A number of questions are asked by clients eitherwithin the financial accounts file automatically fill in the
before purchasing or after downloading the accountingshort or full tax return and only fill in the detailed
software. Many of these questions and the answersexpense classifications if required to do so.
are the same the most typical of which are producedDoes the package produce my quarterly vat returns
here.when a vat flat rate scheme is being operated.
Why is the monthly profit and loss account notThe user guide contains notes on how to enter the
updating from the sales and purchases entered.value added tax flat rate percentage on the sales
Updating the profit and loss account in the financialbookkeeping spreadsheet. The bookkeeping single
accounts file is automated. If the financial accounts fileentry of the flat rate vat percentage on the sales
is not updating automatically the links from the salessheet updates throughout the package including the
accounting spreadsheet and or the purchasesubsequent months on the sales sheet and also each
accounting spreadsheet are not working. This may bemonth on the purchases bookkeeping spreadsheet
because the file names have been changed whichautomatically calculating value added tax at the flat
breaks the links between the files.rate percentage and expenses value added tax paid
The most common reason is the way the files wereon purchases at the zero vat rate producing a
originally saved when initially downloaded from thequarterly vat return.
website by opening the files first before saving them.Does the self employed accounting software package
When a file is opened first before saving the computerproduce a balance sheet.
stores that file in a temporary internet folder andProducing a balance sheet is optional for self
changes the links to temporary links within thatemployed small business and not an essential
temporary folder.requirement of completing the self employed tax
When that file is then saved it is those temporary linksreturn. The self employed package is based upon
which are being saved and not the original links. Thosesingle entry bookkeeping and does not produce a
temporary links would not be recognised by the otherbalance sheet which requires double entry
files which form the link structure. The solution is tobookkeeping while the limited company package does
delete the files and save the files again direct to yourproduce a balance sheet as it is a legal requirement
accounts folder without opening them first therebyfor a limited liability company.
preserving the original links.As the self employed accounting software includes
Accounting entries on sales and purchases appear onsales and purchase spreadsheets and also cash and
the profit and loss account but do not appear on thebank spreadsheets it is possible to manually produce a
list of expenses on the self employed tax return.balance sheet if required but the accounting software
The self employed tax return required to bedoes not produce it automatically.
completed in the UK is dependent upon the salesDo I purchase a new software package each financial
turnover. Small business with total sales incomeyear or can the accounting software be updated for
exceeding 64,000 pounds for the financial year endingmore than one year accounts.
5 April 2008 are required to complete the full selfAs the accounting software and payroll packages
employed tax return while businesses with a turnoverinclude the current financial year tax rules that enable
under 64,000 pounds may complete the short versionthe financial packages to automate the production of
of the self employed tax return.. Coincidentally thethat years tax returns then each year has new tax
threshold is the same as the vat threshold.rules embedded and being on excel rather than an
In addition if the sales income is less than 30,000accounting database then it is necessary to purchase
pounds then it is not necessary to complete all thea new accounting or payroll package each year.
individual expense classifications. The excel formulae