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Suitability of the Sole Trader Accounts Package

The easy accounting package consists of two excel accounts spreadsheets, sales accounts spreadsheets and expense accounts spreadsheets for purchases with a financial accounting file that collects the bookkeeping entries and produces the year end income and expenditure account including the tax liability and an automated excel copy of the self employed tax return form. No bookkeeping or accounting knowledge is required as the self employed bookkeeping system works on single accounting entries using very basic spreadsheets no more complicated than making lists..

Value Added Tax

The easy accounting basic spreadsheets in the sole trader accounts software package does not have columns to separately record vat inputs and outputs and is therefore not suitable as a vat registered self employed bookkeeping system or likely to be vat registered during the financial year. If vat registration is a possibility then the self employed accounts software package would be more suitable as flexible to deal with both vat and non vat registered business. The vat threshold from 6th April 2008 is £67,000.

Short Self employed Tax Return

In April 2008 HMRC introduced two versions of the new self employed tax return to replace the self assessment tax return with effect from the financial year 2007-08 The short tax return is completed by businesses with a sales turnover of under £64,000 p.a. with the full tax return including further expense analysis being required from businesses that exceed the £64,000 threshold.

The sole trader tax accounting package produces an excel copy of the short self employed tax return and therefore the self employed accounts package would be more appropriate if sales turnover might exceed £64,000 as the self employed small business tax software produces both short and full versions of the tax return.

Business Bank Account

Self employed accounts do not have to have a business bank account although the majority do. If the business is operating a business bank account then the accounting records should include the entries to that account. The sole trader accounts package does not include a bank account spreadsheet and so if one is operated then the self employed accounting package would be more suitable as that accounts package includes business bank accounting spreadsheets

Employees

The sole trader accounts package does not include a wages interface and does not have the facility to be used with the integrated payroll software. The self employed accounting package has these additional facilities which would be a better choice if employees are likely to be employed during the financial year.

Suitability Summary:

If the sole trader does not operate a business bank account, has no employees and will not exceed the vat threshold then the sole trader accounts package is the basic accounting choice.

Alternatively choose the self employed accounting package for  your small business accounting software

The sole trader accounts package includes:

Sales accounting spreadsheets

The simple bookkeeping system consists of monthly accounts spreadsheets to record the sales income.

The basic spreadsheet is no more difficult than making a list of each months sales.

Purchases accounting spreadsheets

The simple bookkeeping system consists of monthly accounts spreadsheets to record and analyse expenses

The basic spreadsheet is no more difficult than making a list of each months expenses.

Financial accounts file containing various spreadsheets as follows:

Fixed asset spreadsheet - capital allowances are automatically calculated and entered in tax return

Profit and loss account - Income and expenditure statement to show business profitability each month

Tax liability calculator - Automatically calculates the income tax and national insurance liability as just part of the small business tax software

Self employed tax return - Automatically fills in an excel copy of the short self employed tax return

The Sole Trader Basic Accounting Package  is written on Microsoft Excel worksheets. Excel or an open source spreadsheet package must be installed on your computer to enable the simple accounting software to operate.

Click here to visit the Sole Trader Accounts Order page

If you wish to ask a question please post your question in the DIY Accounting Teneric forum at

http://forums.teneric.co.uk/diy-accounting/

Key Features & Benefits of Sole Trader Basic Accounts Spreadsheets

• Enter purchase invoices from suppliers, the simple accounting system shows who has been paid and the value of creditors still outstanding.

• Enter sales invoices to customers and the simple bookkeeping system shows who has paid and who still owes you money, the debtors.

• Single letter entry on the purchases spreadsheet as listed on each sheet and in the simple bookkeeping user guide provides the accounting expenditure analysis and updates your financial accounts.

• Enter vehicles and assets purchased and the Fixed Asset schedule automatically calculates the capital allowances and puts these in your self employed tax return .

• Annual and Monthly Profit and Loss Accounts produced automatically

• Accounting software that produces a copy of the HMRC short version of the Self employed tax return fully automated, no entries required

• Income Tax and self employed National Insurance liability calculator

• Simple accounting software User Guide accompanies the sole trader package containing concise, easy to read notes plus all important tips on HM Revenue & Customs guidelines to save you taxes.

• Technical and Operational support is included by phone or online via email with over 95% of questions dealt with the same day.

    Click here to email a question

Brief descriptions of the full range of Accounting Software, Payroll Software, Company Formation are available on the DIY Accounting home page

"Simple bookkeeping system for a sole trader providing basic accounts spreadsheets with automated tax accounting software and self employed tax return"

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Last modified: 03/17/09