Financial Accounting Software: Choosing the Right One

Author: Paul

Financial accounting software is a state of the art solution to assist all needs of modern day businesses. If you have installed integrated accounting software it will allow you take care of your financial accounting and enable you to take it out of the closed walls. Such a software gives you access to your financial assets and accounting from any corner of the globe. All size of businesses can utilise financial accounting software but using the wrong accounting software can lead to a negative direction. So, at times most companies using wrong accounting software need to accommodate the settings of the software they use or customize the integrated accounting software to work in line.

But the best trick to avoid such hassles is to select the right financial accounting software. The selection of right software streamlines and automates your business and enables it to avoid the hassles of adjustment process. Software packages today come with different modules. Thus, always try to select the right modules of integrated accounting software. Selecting the right financial accounting software with the right modules your company can gain the immediate benefits from it.

Modules that should be taken into consideration while selecting financial accounting software for your office are – General Ledger, Sales order Entry, Inventory Control, Job Cost, and purchase order. All these modules are important features of all good integrated accounting software packages. While selecting the modules check out that the software provides you the capabilities to access reports without any difficulty. The modules must be able to configure and make step wise approach for best solution.

About the Author:

Paul Benjamin is a freelance writer on ecommerce. He has written articles and blogs on eCommerce solutions,.CRM applications Inventory management

Article Source: ArticlesBase.com - Financial Accounting Software: Choosing the Right One

Accounting Software Helps Keep an Eye on the Big Picture

Author: David Kraft

Anyone with experience running a business can attest to the fact that it can be incredibly difficult to avoid getting caught up in the day to day operations of your company. In larger companies, heads of departments often have the same problem - not being able to keep an eye on the big picture of operations.



One area where this can be particularly daunting and counterproductive is accounting. Thankfully, a good accounting software package can help. It is easy to get caught up in the details of the numerous accounting transactions that take place at most companies on a daily basis and lose an idea of what those numbers really mean. A good software package will have the ability to run reports at scheduled times every day that will show you, for example, how the payments you received today reduced the debts that are owed to you or how the big sale this afternoon impacted your monthly earnings.



Far too many businesses realize that changes need to be made at too late of a time because they lose sight of the "big picture." This leads to a reactive sytle of managing the business that can be detrimental. Armed with the right accounting software, companies will be more able to operate proactively.



For Example...



A big area of difficulty for a number of businesses is payroll cost and benefits. The bottom line is that it is way too easy to spend too much money on employees if you do not completely understand how these payroll costs impact your bottom line. To maximize your profits, you need to have a clear and easy to understand way of seeing where your payroll costs are going. Accounting software with these abilities will allow you to determine if your money is being spent effectively.



Some software on the market today has the ability to product charts and graphs that visually display the amount paid to each job as a percentage of total payroll costs for the entire organization. Having this easy-to-see graph allows decision makers to see where costs can be or need to be cut.



How to Find the Right Software



Finding software that will give you the big picture view that you want is not easy. The big picture view that makes sense to you may not be the same one that makes sense to another business owner. As such, some research is required to find the right software.



A great place to start is to look at accounting software reviews online to see what has worked, and what has not worked, for similar businesses. Various services exist that compile these reviews and are very good at recommending a set of software for you to choose from - essentially narrowing your search for you. As a general rule, look for software with more reporting functionality than you think you need as you'll likely discover some new reports that are more effective and will have room to grow your business with the software.



Also keep in mind that no matter which software package you pick, chances are good that you won't use all of the reports. Therefore, do not discount one piece of software because it can produce reports that you won't need - you can always turn off that reporting feature.



Also prepare for the unexpected. One day you may need to prepare a highly specialized report or summary that you've never needed in the past. Look for software that has the ability to create custom reports based on criteria that you select.



Finally, keep in mind that accounting software is only as good as the people that use it and how accurately the data is collected and/or input. When done properly, a solid financial software package will provide an excellent return in the form of a better high level view of your businesses financial situation.



To summarize, if you are tired of operating reactively and need a way to be more proactive in your decision making, new accounting software can go a long way.

About the Author:
David Kraft is a freelance author that writes articles for business owners aimed at helping them improve their operations. Learn from accounting software reviews at his business accounting software site.

Article Source: ArticlesBase.com - Accounting Software Helps Keep an Eye on the Big Picture

Cost Accounting for Profit With Accounting Software

Author: Terry Cartwright
Cost accounting is a complex subject that specialist accountants use to examine and report on business expenses to ensure financial control. Such expert cost accounting might involve absorption costing, marginal costing, break even and variance analysis. Such specialist accounting techniques are not usually available to the small business as they lack a cost accountant.



The good news for small business is that the majority do not need such specialist costing analysis as then proprietor usually has intimate detailed knowledge of all business expenses incurred. Or at least the small business believes he has that knowledge.



In truth it is not until regular bookkeeping records are produced that the small business can stand back and examine the real effect of the business expenses on the profitability of the business. And by virtually taking a third party view of the costs and effect of those expenses on profitability can the financial decision be taken to improve profitability.



Producing accounts on a monthly basis using accounting software suitable for the size and accounting experience of the small business owner is the first step to improving profitability. The second step is to review those accounts and determine just which cost items can be changed.



Costs occur and behave in different ways. Some business expenses may be regarded as fixed costs which others are termed variable or semi variable costs. The impact of sales volume increases or decreases variable costs and the marginal gross profit produced while turnover has little impact on fixed costs in the short and medium timescales.



Having produced a monthly profit and loss account and started the accounting for profit review of the financial figures it is useful to separate the nature of the expenses into those that are fixed and those expenses which are variable costs and those expenses which are semi variable costs.



Fixed costs means the level of expenditure does not vary with normal changes in sales volume in the short and medium term at least. But being fixed does not mean the rice of that expense cannot be reduced by examining both the value for money obtained and whether that cost is necessary in the first place.



Fixed costs of a small business might include such items as rent and premises costs, insurance and indemnity premiums, capital costs of fixed assets, administrative, legal and professional fees. Another way to view what is and what is not a fixed cost is to determine which costs are incurred to provide the base operating facility of the business.



If by changing the base of the business or negotiating better rates for those base expenses the fixed costs can be lowered then the pressure on generating gross profit is reduced. Fixed expenses may also contain such waste expenditure and any non essential expenditure in this area should be reviewed for potential elimination on the basis that if it can be dispensed with without affecting sales volume then chop out that expense as waste.



Variable costs depend heavily on the products or services being provided but are essential the cost of goods and services being sold. Often called direct costs the variable costs of a business should be reviewed for ways to reduce the unit cost either by sourcing cheaper supplies at the same quality levels or negotiating more effective prices. The volume of purchases can obviously affect the variable cost and consideration may be given to placing regular orders, higher volume orders or negotiating settlement discounts.



Direct costs are perhaps one of the one most influential cost areas in that the lower the direct cost that can be achieved reduces the sales volume required to reach and exceed the beak even point and also puts less pressure on the fixed costs.



Semi variable expenses would be those items which the small business makes definite decisions to buy depending upon the requirements of the products and the level of volume required. Many semi variable costs are dependent upon the management decisions of the small business owner and are a critical area in which the success or failure of the business may depend.



Semi variable costs may include the advertising and promotion costs of the business, perhaps the transport and distribution costs, direct employees and goods or services bought in to support the sales volume.



Each variable cost should be reviewed and a decision made on whether value for money is being obtained. That review should also examine whether the level of support the semi variable costs provide to the achievement of financial success is adequate, improvable or could be dispensed with.



Accounting for profit is the key area in which to examine all costs. Accounting or bookkeeping software can be a useful tool to identify the volume and levels of expense. The nature and performance of each expenditure classification should be subjected to the critical review of the small business owner to generate either a higher or safer financial performance.

About the Author:

Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets for DIY Accounting providing complete Small Business Accounting Software solutions for with single and double entry bookkeeping solutions for limited companies and self employed business which produce automated profit and loss accounts and tax returns.

Article Source: ArticlesBase.com - Cost Accounting for Profit With Accounting Software

Sales Accounting for Profit With Accounting Software

Author: Terry Cartwright
It is a natural phenomenon for small business to be deeply involved in the particular skills and operations of the business. A fundamental issue that many small businesses overlook is that the particular industry in which they work and their personal skills are just tools of the trade not the trade of business itself. That trade of business is to produce a satisfactory bottom line.



While all business keeps financial records and many use accounting software the serious benefits of producing the accounts has a tendency to be restricted to accounting for tax purposes. The most useful function of a good bookkeeping system is however to use the financial information to generate higher levels of profitability.



The first step is to acquire and adopt an accounting software package suitable for the skills and knowledge of the small business. The second essential step is to produce a regular monthly income and expenses statement, usually called a profit and loss account.



Any individual monthly profit and loss account is of useful by limited value as a financial tool. Several consecutive monthly financial accounts can be indicative of where action can be taken to use the bookkeeping tool as a tool for accounting for profit.



Having produced a set of monthly accounts the next stage is to simply sit back and look at the numbers. The financial numbers tell the story of how the business has performed financially and with an intimate knowledge of how the figures came about the small business owner is perfectly placed to consider all potential options.



Sales turnover is a critical area to be considered. The historical sales income should be viewed in three separate modes being sales volume, sales prices and marginal profitability, the most critical and important of which is likely to be marginal profitability.



It is useful to stand back from the numbers and consider how the sales volume was achieved, what the driving forces where to achieve that level and what additional promotion can be done to increase sales volume even higher. Thinking about how the sales volume was obtained is the basis for determining how even higher levels can be produced in succeeding months.



Selling prices are often driven by market forces and product costs. An important area to consider is whether the sales prices obtained where the maximum prices obtainable at the same volume. Other considerations would be to consider the effect of increasing sales prices which would increase profitability if the same volume is maintained and even the effect of reducing sales prices if the volume of business increases to produce a higher level of gross profit.



Businesses in niche markets can charge a high selling price for the products or services without affecting the demand for the goods. On the other side of the coin the supermarket approach could be adopted by generating high volumes of sales from promoting the products at the lowest available prices.



The most critical area to be considered is the marginal profit from different products or services. The marginal profit is the gross profit which is the difference between the net selling price and the variable cost of that business area.



A lot of time can be spent working in the wrong direction, By identifying the most profitable items compared with the time and effort involved the small business can become more financially efficient by diverting more effort to those areas producing the highest financial returns.



The essential tool to this study is to maintain accounting records on a regular basis and produce a monthly profit and loss account. Periodically take a step back and consider the direction, future and opportunities available based on historical performance and the changes required to positively influence the bottom line, using and viewing the accounting software as a business tool. That tool is accounting for profit.

About the Author:

Terry Cartwright of DIY Accounting designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions for with single and double entry Bookkeeping solutions for limited companies and self employed business that produce both monthly profit and loss accounts and automated tax returns

Article Source: ArticlesBase.com - Sales Accounting for Profit With Accounting Software

Payroll Accounting Software : Adding an Edge to Your Business

Most of the organisations in UK are employing Payroll Accounting Software to ensure the full control over the vital process of payroll computation. These payroll software packages are designed to keep track pf salary, taxes related to the wages, late payments, new starters, leavers and other supplementary payments. Such accounting software can either be developed in-house by the organisation using it or can even be purchased from the third party with some local modifications.

The benefits obtained by employing an efficient payroll accounting software are multifold.

• The payroll managers are relieved of lengthy and tedious process of pay computation as now the whole process is computerised and online with these payroll software packages. They are now able to keep the bottom line of their business in check.


• These software applications are customisable to suites individual business process needs.


• The system is easy to use and requires minimal training and expertise. Some accounting software often comes with the free demo.


• These payroll software applications can be quickly downloaded and installed effortlessly on any Windows PC.


• Truly superior database with data rollback ability to support system failure recovery.


• Highly detailed audit trails to keep track of all the updation and deletions.


• Some of the payroll software packages provide the facility of simple note saving functions with automatic reminder pop-ups.


• Easy to use report-generating module enabling the managers to generate various sorts of printer-friendly reports.


• Payroll Balance Recalculation is another important feature supported by these software applications.

UK market is flooded with a wide variety of accounting software products, but to choose the one which suites your business and which can be customised according to your business needs, requires some consideration. Another very important thing to note is the security and auditing features of these accounting software.

Pegasus Accountancy Software Opera Ii

With advancing technology of computers and the internet more and more people self employed and setting up businesses from home. If your business is lucky enough to be growing rapidly you may have trouble keeping a track of all your finances.



The best way forward would be to look at buying some accounting software. This will make managing your accounts and finances a lot easier and will save lots of time.



Choosing the right accounting software is very important to each individual business.

The trouble with this is the amount of available software on the market. They range in price and the more expensive are not necessarily the more effective or user friendly.



To find the very best software you need to evaluate what your particular business needs are. Accounting software such as Pegasus Opera II makes online filing and accounting easy. Because filling and accounting takes a lot of time, Pegasus Opera II is a great business software solution which will save a lot of hours which could be better utilised within the business.



One of the leading providers for financial management is the Pegasus Accountancy Software; it is software that has an in-depth understanding for the small and medium-sized business market. Pegasus software is always evolving because of their active involvement in future technology. They are continually enhancing their product with user requirements in mind and with the latest legislation.



If you choose to use Pegasus it can help you run your business much more effectively. It will keep an eye on the day to day running of your business so as to allow you do spend your time more productively. Up until recently accounting systems were very complicated and had inflexible reporting tools. Pegasus makes reporting a lot easier with seamless integration, great reporting power, ease of use, accuracy and security. It is also the ideal solution for complicated payroll procedures.



The Pegasus Opera II Financials will give you the integrated tools to fully control your business and can help you drive it forward. It can help you keep track and analyse key information which can improve productivity and help you make informed strategic decisions.



So when making a decision on which accounting software to use make sure you take a look at Pegasus Accounting software reviews as you will find them to be one of the best if not the best.

What To Look For In A Web-Based Accounting Software

In these difficult times, you and other business owners are probably searching for new ways to save money and manage your dwindling profit margins. One of the areas in which you can take back control of your business is by handling the accounting yourself. And one of the most popular ways to manage your accounting is by getting software for accounting that will make it easy for you to send invoices, receive payment, and run reports such as cash-flow and profit/loss.

There are five things you should be looking for in your new accounting system softeware program if you want to relax and have a long and happy life together.

Your web-based accounting software should be:

• Simple to use
• Accessible from anywhere
• Compatible
• Secure
• Affordable

Simple to use. Let’s face it. You’re a business owner, not an accountant. So what good is having a program that doesn’t speak your language? You want to find simple accounting software that includes all of the basic features you need to run your business: such as customer invoicing, bill payments, reports, payroll, and banking. It should also be customizable to fit your particular business needs and not the other way around. It should allow applications such as customizable invoices or automated email messages. This way, you can communicate using your logo and your marketing strategy.

Accessible from anywhere. You want a program that is both online and offline compatible. Web based online—so that it can be accessed from anywhere, as long as you have an Internet connection—and, it needs to be available offline too, so you can still work when you cannot get a connection; you can always save your work and update it when you get back online. You should also be able to share data in real time—and at the same time—with other users anywhere in the world.

Compatible. It should be compatible with all major operating systems (Microsoft Windows®, Apple Mac OSX®, and Linux) and all major web browsers (Internet Explorer®, Firefox®, and Safari®). It should also include all upgrades, bug fixes, and feature enhancements as part of your subscription. Software development is constantly changing and improving, so you shouldn’t need to worry about upgrading or having to buy the next version every time an upgrade is available.

Secure. If your data is stored on a file server in your office, you are setting yourself up for several unsafe situations that could be avoided. A good web-based accounting program protects you from fire or from theft, be it physical theft (intruders that could steal your computer or backup files) or cyber theft (hackers that access your files electronically.)

Affordable. Most online accounting programs are surprisingly affordable, charging just pennies a day for lots of user-friendly features. That’s a very small price to pay for peace of mind.

Keep these five simple rules in mind when shopping for a simple accounting software, and you will be able to concentrate on more important business matters like making a profit.

We recommend Merchant's Mirror accounting system software, the next evolution in accounting for many businesses. It breaks the mold of traditional accounting systems and challenges what we usually think of when we refer to bookkeeping software. By using the latest in web-enabled technology, Merchant's Mirror provides a complete accounting suite.

Accounting Software saves your time

Accounting software records and processes your financial transactions within the specified functional modules such as account payable, account receivables, balance sheet, financial forecast, and tax calculations. It also enables you to keep a track of all the expenses as an individual and within a corporate house. You can manage the financial track of all the employees within a company using the Accounting Software.

Multiple accounting software packages are available within the market. You may choose a free accounting Software from multiple vendors if your scale of operation falls in small/medium category. You may also opt for paid accounting software for which the company provides after-sales service also. Large business houses prefer to use specially designed accounting software that may be customized as per the requirements. However, small business ventures may prefer to purchase software from the local computer stores. You may also prefer to download some of free accounting software from internet.

Microsoft Office Accounting Express is an easy-to- use accounting software package available for free. The same may be downloaded from the internet or you may order a Free CD for the Accounting Software from Microsoft. The look and feel of the Microsoft Accounting Software resembles Microsoft Office. It’s easy to install, use, and helps you save time, get organised, and manage your business online.

It’s easy to learn and use. It also saves time as you have to provide the information just once. It enables you to store and organise all the information in one place. You have the option to generate the financial report as per the requirements.

Real Estate Accounting - Software for your Property Management

Are you planning to start your real estate business? Well, if that is so, then you need to take into consideration one vital aspect of any business and that is accounting. In addition, in the case of real estate, accounting plays a much important role. As real estate business is all about financial transactions made by numerous people, the accounting department needs to be extra alert. This department follows certain principles as well as strategies to maintain a proper setup for the business of real estate. Here, it becomes a tedious job to handle the accounts and that is why only experienced accounts qualify for the job. The professionals in the field have to keep a track of each detail of the financial transactions made.





Real estate accounting deals with maintaining of the book records. In addition, the accounts have to keep a track of the ledger books, balance sheets and the debited as well as the credited transactions. All the information is stored for future purposes and it is the responsibility of the account to take care of the authenticity of these records. Moreover, this is not all; a professional account in real estate also keeps a record of the daily costs that include utilities, maintenance and management of the business. Moreover, this department also deals with property taxes, depreciation charges and insurance. Thus, handling the position of a real estate accountant is a responsible job and not just every body’s cup of tea. It needs commitment and calm nature to handle pressure.





When the accountants define the strategies for their accounting process, they need to emphasize on the strategic necessity of the occupancy cost to make sure they do not get troubled while handling the accounting of real estate. A lot of accuracy and concentration is required in real estate accounting because the success of the real estate business depends upon it. It helps the businesses to grow and reach newer heights. In addition, it also helps the business to curb the losses that has been faced due to some reasons. There are a number of ways that are used to ensure that the accounting department works smoothly in the real estate business. And that is why technology has taken over the task of human beings.





Yes, in the present times with the advancement in the technology, you can also get real estate accounting software to handle your business’s accounts. This software is much more reliable. This software includes the management of areas like distribution, payroll, budgeting and accounting as well. Moreover, they are made with a highly user friendly interface so that the user does not need to be a computer genius to operate them. This software is popular because it provides flexible and scalable solutions. The software has changed the scenario of the real estate industry. You can get this real estate accounting software from the Internet. Some of them are also available for free trial version.

Implementing New Accounting Software Successfully

Although modern software is definitely "smarter" than software developed years ago, many businesses still stumble when implementing new accounting software because they believe that the newer software can simply be installed and everything will begin operating more smoothly. The reality is that selecting the right software is only half the battle - it must be implemented properly to attain the benefits that it advertises. Each software application is unique and therefore must be implemented differently, but some common practices exist for making any financial software implementation smooth.



Prior to purchasing any software, the business should do proper research in to a particular applications features and functionality to ensure it is the best for your applications. After identifying the right solution, the process of successfully implementing it can be benefited by adhering to the following guidelines, all of which should be taken in to consideration before even looking at new software.



Create a team of individuals responsible for overseeing the entire software process - from identifying needs to picking software to implementing it. The team needs to have representation from all departments that are directly effected by the company's accounting software and should be led by a manager capable of taking their thoughts in to consideration before making any decisions.



Additionally, managers from every division in the company should be consulted about the new software and its implementation. Ask these individuals to create a list of critical factors that they see - ways that the new or old software has an influence on the financial activities that department is responsible for. These lists should be given to the software selection and implementation team to make sure all aspects of company operations are considered in relation to new software.



The software team or other representatives within the organization should also create a flowchart of the company's accounting activities. Looking at an accurate flowchart will allow decision makers to identify bottlenecks in the process and look for software and implementation techniques that can help to alleviate some of these bottlenecks, resulting in more efficient operations.



When working through software selection and implementation, it is also advantageous to have samples of all forms, reports, and documents that the company uses for accounting purposes. Knowing the purpose of each form and report will assist the team in configuring the new software to best work with existing practices and may shed light on ways to improve current documentation with the new software's additional capabilities.



One common problem to successfully implementing new software is that some companies, especially smaller organizations, simply do not have the proper time and resources to dedicate to ensure the process is done correctly. If you find yourself in this boat, it may be worth the investment to hire an independent consultant to head up the software selection and implementation process. Yes, they will cost money, but the benefits of having the right software correctly configured in a shorter time frame are often well worth the investment.



Finally, some companies are not in need of entirely new software as much as they need a more current version of their old software with new bells and whistles. In this case, speaking with the software vendor is often a great way to ensure you get exactly what you need and that the upgrade is done properly.

Five Reasons Accounting Software!

So what’s the big deal with small business accounting software? Why would someone spend money on something that can be done with a pencil and paper? To get fancy you can use a calculator or a excel spreadsheet for free.

Here are 5 quick reasons that accounting software might be the best route for a small business. Apply these benefits to your specific business and if 3 out of 5 make sense, then look into getting software. If these reasons do not help your situation, then rest assured your business accounting is operating just fine the way it is.

1. Price – The first thing on everyone’s mind is “What will it cost me?” Of course there are many different products and prices, but here are few. Quicken Home and Business 2009 is regularly $99.99, but with sales and rebates it can be purchased for $49.99. Peachtree First Accounting 2009 is priced at $69.99. These prices are as of winter 2008. Older versions are, available as well, so this gives an idea of the price range to look at. Also keep in mind that this is a one-time purchase of a product that will be used on a daily or weekly basis.

2. Taxes – Automation should be used for taxes whenever possible. Manually figuring income, expenses, for more details visit to www.software-designers-pro.com and deductions can take a very long time to organize and calculate or it can be very expensive to have done by an accountant. Software provides summaries that show a running status of expected taxes with deductions for easy planning. Reports can be customized to reflect specific financial information.

3. Time – Data is only entered in one time and can be copied and transferred to figure into many different fields. All the income, expenses, and write-offs are managed in one program for easy accessibility. See a running overall snapshot of what's coming in for the month, what's going out, and what's left in your accounts.

4. Accuracy – Once the numbers are input, the computations are automatically completed correctly. There is no need to double check the work or wonder if the numbers have been calculated exactly right.

5. Dependability – Would you like the capital to be automatically sorted into the right categories of savings, bills, payroll, and supplies? You have to visit www.viral-toolbar-builder.com Be able to print reports to show employees or stock holders whenever they request to see 401K figures or cash flow reports for the last three months. Set up bill reminders so your creditors can count on payments like clockwork.

Most small businesses have a goal of growing the organization larger. If this is true for your business, take whatever time and energy is currently used for the accounting and multiply it by the amount of success that is desired. When using accounting software, only the increase in data entry is applicable because all the calculations are still automated. There are many more benefits of accounting software for individual situations, but just think about these 5. Are these features worth 2 tanks of gasoline or an office chair or desk?

DIY Accounting Small Business Accounting Software Questions And Answers

A number of questions are asked by clients either before purchasing or after downloading the accounting software. Many of these questions and the answers are the same the most typical of which are produced here.



Why is the monthly profit and loss account not updating from the sales and purchases entered.



Updating the profit and loss account in the financial accounts file is automated. If the financial accounts file is not updating automatically the links from the sales accounting spreadsheet and or the purchase accounting spreadsheet are not working. This may be because the file names have been changed which breaks the links between the files.



The most common reason is the way the files were originally saved when initially downloaded from the website by opening the files first before saving them. When a file is opened first before saving the computer stores that file in a temporary internet folder and changes the links to temporary links within that temporary folder.



When that file is then saved it is those temporary links which are being saved and not the original links. Those temporary links would not be recognised by the other files which form the link structure. The solution is to delete the files and save the files again direct to your accounts folder without opening them first thereby preserving the original links.



Accounting entries on sales and purchases appear on the profit and loss account but do not appear on the list of expenses on the self employed tax return.



The self employed tax return required to be completed in the UK is dependent upon the sales turnover. Small business with total sales income exceeding 64,000 pounds for the financial year ending 5 April 2008 are required to complete the full self employed tax return while businesses with a turnover under 64,000 pounds may complete the short version of the self employed tax return.. Coincidentally the threshold is the same as the vat threshold.



In addition if the sales income is less than 30,000 pounds then it is not necessary to complete all the individual expense classifications. The excel formulae within the financial accounts file automatically fill in the short or full tax return and only fill in the detailed expense classifications if required to do so.



Does the package produce my quarterly vat returns when a vat flat rate scheme is being operated.



The user guide contains notes on how to enter the value added tax flat rate percentage on the sales bookkeeping spreadsheet. The bookkeeping single entry of the flat rate vat percentage on the sales sheet updates throughout the package including the subsequent months on the sales sheet and also each month on the purchases bookkeeping spreadsheet automatically calculating value added tax at the flat rate percentage and expenses value added tax paid on purchases at the zero vat rate producing a quarterly vat return.



Does the self employed accounting software package produce a balance sheet.



Producing a balance sheet is optional for self employed small business and not an essential requirement of completing the self employed tax return. The self employed package is based upon single entry bookkeeping and does not produce a balance sheet which requires double entry bookkeeping while the limited company package does produce a balance sheet as it is a legal requirement for a limited liability company.



As the self employed accounting software includes sales and purchase spreadsheets and also cash and bank spreadsheets it is possible to manually produce a balance sheet if required but the accounting software does not produce it automatically.



Do I purchase a new software package each financial year or can the accounting software be updated for more than one year accounts.



As the accounting software and payroll packages include the current financial year tax rules that enable the financial packages to automate the production of that years tax returns then each year has new tax rules embedded and being on excel rather than an accounting database then it is necessary to purchase a new accounting or payroll package each year.

5 Reasons That Accounting Software is Worth Purchasing

So what's the big deal with small business accounting software? Why would someone spend money on something that can be done with a pencil and paper? To get fancy you can use a calculator or a excel spreadsheet for free.

Here are 5 quick reasons that accounting software might be the best route for a small business. Apply these benefits to your specific business and if 3 out of 5 make sense, then look into getting software. If these reasons do not help your situation, then rest assured your business accounting is operating just fine the way it is.

1. Price - The first thing on everyone's mind is "What will it cost me?" Of course there are many different products and prices, but here are few. Quicken Home and Business 2009 is regularly $99.99, but with sales and rebates it can be purchased for $49.99. Peachtree First Accounting 2009 is priced at $69.99. These prices are as of winter 2008. Older versions are, available as well, so this gives an idea of the price range to look at. Also keep in mind that this is a one-time purchase of a product that will be used on a daily or weekly basis.

2. Taxes - Automation should be used for taxes whenever possible. Manually figuring income, expenses, and deductions can take a very long time to organize and calculate or it can be very expensive to have done by an accountant. Software provides summaries that show a running status of expected taxes with deductions for easy planning. Reports can be customized to reflect specific financial information.

3. Time - Data is only entered in one time and can be copied and transferred to figure into many different fields. All the income, expenses, and write-offs are managed in one program for easy accessibility. See a running overall snapshot of what's coming in for the month, what's going out, and what's left in your accounts.

4. Accuracy - Once the numbers are input, the computations are automatically completed correctly. There is no need to double check the work or wonder if the numbers have been calculated exactly right.

5. Dependability - Would you like the capital to be automatically sorted into the right categories of savings, bills, payroll, and supplies? Be able to print reports to show employees or stock holders whenever they request to see 401K figures or cash flow reports for the last three months. Set up bill reminders so your creditors can count on payments like clockwork.

Most small businesses have a goal of growing the organization larger. If this is true for your business, take whatever time and energy is currently used for the accounting and multiply it by the amount of success that is desired. When using accounting software, only the increase in data entry is applicable because all the calculations are still automated. There are many more benefits of accounting software for individual situations, but just think about these 5. Are these features worth 2 tanks of gasoline or an office chair or desk?