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A profit and loss account is a summary of taxi 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.
FINANCIAL ACCOUNTING SOFTWARE TO AUTOMATE PROFIT & LOSS ACCOUNT
A profit and loss account is a summary of taxi 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 receipts excel spreadsheet and the expenses excel spreadsheet
All the financial information is generated automatically from the receipts and expenses sheets each month to produce a monthly profit and loss account and the annual profit & loss account to date and finally the self assessment tax return from which the tax liability can be calculated.
Mileage Allowances or Vehicle Expenses?
Fully automated if you choose to enter the mileage covered then the taxi driver book keeping software will automatically calculate for you and select the highest cost, mileage allowance or vehicle running costs. The taxi book keeping system chooses the highest cost as this reduces your taxable profit and legally reduces your tax bill.
Recording your mileage is optional. If you do not record your mileage then your vehicle running costs will by default be the largest and therefore included in the taxi driver accounts. You cannot claim vehicles costs and mileage allowances, it has to be one or the other. This taxi driver accounts software, Cabsmart, automatically chooses the best for you.
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 and assist advances for new vehicle purchases..
This is how the simple profit & loss account appears in the financial accounts section of the financial accounting software.
DIY Accounting taxi driver 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. The unique DIY Accounting Taxi Driver Financial Health Check is fully automated and estimates annual income from month one of the financial year and provides every Taxi driver with an immediate snapshot of how drawings compare with net taxable income after tax and national insurance to keep you on track for a successful financial performance.
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.
DIY Accounting also recommend that when using the self employed taxi & van driver accounts and viewing the profit & loss account also enter drawings in a row beneath the last row of the profit & loss account. This gives an instant view of how much money is being taken out of the business compared with the profit & loss being achieved. Taxi book keeping at its best, designed specifically for taxis and van drivers.
DIY Accounting "Cabsmart taxi & van driver Mileage allowances and vehicle costs in the UK"