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FINANCIAL ACCOUNTING
SOFTWARE TO AUTOMATE PROFIT & LOSS ACCOUNT
A profit and loss
account is a summary of business transactions for a given period -
normally 12 months. By deducting total expenditure from total
income, it shows on the "bottom line" whether your
business made a profit or loss at the end of that period. A profit
and loss account is produced primarily for business purposes, how
the business is performing. But most of the information is also used
by HM Revenue & Customs to work out your tax bill. In this
financial accounting software the financial software uses the
automated entries in the profit & loss account to complete the self
assessment tax return.
No Entries Required:
Fully automated the financial accounting
software prepares the self employed profit & loss account from the entries
made to the sales excel spreadsheet and the purchase excel spreadsheet
All the
financial information is generated automatically from the sales, purchases and
payroll sheets each month to produce a monthly profit and loss account and the
annual profit & loss account to date.
Having a
profit & loss account up to date, available in real time enables progress to a
successful financial result to be monitored and should banks or other
institutions request up to date self employed accounts then you have exactly
that, self employed accounts at the touch of a print button.
Having an up to date profit & loss
account available, especially for new start up business, can seriously impress
potential lenders to enable the start up business in particular provide the
confidence to financial institutions to enable arrangements to stave off
possible under capitalisation issues.
This is the screenshot of how the simple profit &
loss account appears in the financial accounts section of the financial
accounting software.
DIY Accounting business accounts software is
crucial to the help and growth of the business. Statistically the majority of
small businesses go out of business within 3 years of start up. The 2 major
reasons for this disastrous track record of start up businesses are a lack of
profits and under capitalisation.
PROFIT FORECAST
In addition to an automated
monthly profit and loss account the actual figures are then used by the
Accounting Software to generate, automatically, a profit forecast for each month
and the full year. No entries are required to produce this table:
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Forecast Profit and Loss Account |
Total Year 5 April 08 |
Apr-07 |
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0 |
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Sales Turnover |
0 |
0
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Investment Grants |
0 |
0 |
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Cost of Sales |
0 |
0 |
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Gross Profit |
0 |
0 |
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General Expenses |
0 |
0 |
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Operating Profit |
0 |
0 |
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Interest received |
0 |
0 |
|
Profit (Loss) before Tax |
0 |
0 |
Keeping a tight rein on the profit
and loss account, produced automatically by the financial accounting software,
gives you control over the business pattern and the opportunity to reverse
adverse trends immediately they appear. Small business finance software that
produce a profit & loss account are an essential element that no new start up
business should be without. Run the new start up business without this financial
software and your success dives into the realm of guesswork. This information is
then used to calculate the likely year end tax liability which is transferred to
the actual profit and loss account, added to drawings and forms the essential
elements of your very own FINANCIAL BUSINESS HEALTH CHECK
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Actual Profit (Loss) before Tax |
0 |
0 |
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Financial Business Health Check |
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Self Employed Drawings |
0 |
0 |
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CIS Tax deducted |
0 |
0 |
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Income Tax & NI Liability |
0 |
0 |
|
Financial Health Check |
0 |
0 |
|
Capital introduced |
0 |
0 |
DIY Accounting also recommend that
when using the self employed accounts and viewing the profit & loss account sole
traders also enter their drawings in either the Health check row above or the
Cash and Bank spreadsheets. This gives an instant view of how much money is being taken out of
the business compared with the profit & loss being achieved and forecasts
the financial future so that You, the Business owner, can be pro-active in
achieving the desired financial performance.
STOCK CONTROL
Another optional feature of the
Accounting Software is Stock Control. It is not essential but there if your
business type requires to use it.
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Calculation Of Stock Sold |
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Calculation Of Stock Sold |
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Date |
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Calculated Stock value |
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Direct Material BOUGHT |
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Stock % Prod A |
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Net Sales Product A |
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Direct Material SOLD |
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Stock % Prod B |
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Net Sales Product B |
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Direct Material SOLD |
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Enter % to change % materials sold |
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0% |
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0% |
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06-Apr-07 |
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0 |
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30-Apr-07 |
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0 |
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0 |
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0% |
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0 |
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0 |
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0% |
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0 |
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0 |
Enter gross margins and the
automated stock control spreadsheet calculates stock values. Enter the physical
stock value if you wish and the system will advise the total stock adjustment
required. An essential tool for in particular retail business to maintain
control over potential stock losses.
DIY Accounting
"Financial accounting software that automates profit & loss account"
| 
DIY accounting and payroll
software limited company formation UK 
