Tax accounting software has its basics in each of the three elements of the title. Accounting being the production of the financial accounts in a template format suitable for the tax system. Tax and tax software denotes the inclusion of the tax rules with software being a description of the fact that the process is automated.
Self employed accounting
To be most effective the self employed accounts should be in a format that can eventually be used by the accounts program to produce the financial information required to complete the tax returns. Since in the UK as in many countries there are several types of tax returns then the accounting software should cope with all variations.
Database accounting software is frequently based upon a chart of accounts which is not necessarily tax return friendly. An accounting spreadsheet being more fixed in nature do offer an opportunity to be tax friendly.
Facility should be available to distinguish between revenue transactions and the purchase of fixed assets as fixed assets are treated differently for tax purposes being subject to capital allowances which are tax allowances written off against the net taxable profit according to the tax rules as opposed to being able to deduct the whole cost of that asset in the one financial year.
Income Tax and Vat Tax Return Software
In the UK the self employed accounts need to supply the numbers for up to three different variations of the self employed tax return. One of two tax returns has to be completed each financial year, those returns being known as the short tax return and the full tax return which have replaced the self assessment tax return.
The short tax return is completed according to the sales turnover of the business. Less detail then the full return is required with only totals required for businesses with a sales turnover under 30,000 pounds.
In addition to the financial year end tax return self employed business whose sales are above the vat threshold must also complete a quarterly vat return. With various types of vat schemes available the accounts package and tax software should be capable of dealing with different vat schemes.
Database accounting packages invariably have the facility to deal with value added tax and various schemes where other types of accounting software may be limited. It is important that tax accounting software provides the user with the specific tax accounting requirements.
Tax Software
To be effective in satisfying the description of tax accounting software the system should also include the tax rates and rules applicable. The tax accounting can then take those tax rates and produce an estimate of the potential tax liability which is a principal concern of all self employed business when the time for filing taxes approaches.
The term software indicates automation based upon data input which the computer package then processes to produce the desired output. Tax software produces the tax requirements of the user.
A tax accounting software package takes the prime financial transactions, converts those numbers to the format required to produce the year end self employed tax returns and quarterly vat returns as required. In addition the tax software function would also use the tax rates to automatically calculate the income tax and national insurance liability
Terry Cartwright qualified as a Chartered Management Accountant and Chartered Company Secretary in 1971. A successful business career followed as Head of Finance for major companies in the UK and several consultancy appointments. In 2006 he created DIY Accounting producing Accounting Software for self employed and small companies that use simple accounts spreadsheets to automate tax returns.
Category: How-To Guides
Article Contributed by Ron Romano
When you’re a small business owner there’s no “Golden Parachute”, no Massive Severance Package or Stock Options to cash in on and there are definitely no bailouts. The success or failure of your small business is all on your shoulders!
Here’s Are 5 Things to Do If You Want Your Business to Fail During a Recession
1. Don’t Do Anything
2. Don’t Do Enough
3. Don’t Encourage Referrals From Other Clients
4. Don’t Create a “WOW” Experience
5. Don’t Take Massive Action Now
Now, if you want to build your small business, there’s good news.
You don’t have to sit back and become a victim of the times. Right now there are businesses and market segments that are making record profits. US Steel just posted record profits for the second quarter after losing huge orders from the auto industry.
Here’s How US Steel Achieved Record Making Profits – And So Can You:
– They found new markets at higher prices
– They were open to new opportunities
– They were pro-active
Here Are 10 Quick and Easy Strategies to Increase Sales and Profits During a Recession
1. Implement systems that measure and track the results of ALL of your marketing, advertising and publicity efforts
2. Look for new ways to re-position products or services you provide to attract a new market segment. Example: Re-position Yoga as “Fall Prevention Strategies for Seniors
3. Find new distribution channels for your products whether it’s through the Internet or other retailers who are selling complimentary products or services.
4. Create Joint Venture Arrangements with other complimentary, not competing Businesses. For example an accounting firm could go to their legal firm and offer to hold a seminar on “Tax Reduction Strategies” for the their (legal firms) clients as a special bonus. The accounting company may get new clients and the only cost is their time. One stipulation, the accounting firm must offer a special seminar to their clients on “How To Structure Tax Shelters for Estate Management”. Both companies benefit.
5. Have a “Rewards Referral Program ” for your existing customers and let them experience how it will work.
6. Know the numbers in your business. Find out what products and services make the most profits and which ones make the least. Start promoting or up-selling those first. Do you know the average transaction value which is the average amount each consumer pays you at the point of purchase? Go find that out now and then ask yourself the question “How can I increase that amount by 10% by adding or bundling in extra value?
7. Position yourself as the “Knowledgeable Expert” in Your Field and write articles for the newspaper, or trade journals and radio interviews. You can even write and submit articles online using www.IWantMoreProspects.com. The print and online media is always hungry for information to provide their readership. They are always on the lookout for new information that solves people’s problems or helps them save them time or money.
8. Differentiate yourself from the competition and give the consumer the “Reason Why” they should do Business with you versus your competitors.
9. Join a Mastermind Group or Coaching Program to improve your skills as a Marketer. Tiger Woods has a golf coach to help him. Professional baseball teams have hitting and pitching coaches. And you should have a business and marketing coach to stop the downhill slide before it becomes uncontrollable.
10. Build a stronger relationship with your customer base through frequent contact, special offers, and newsletters. Survey your existing customers to see what they want and then sell it to them.
This is just a short list on the many things that are possible. Now the question is, do you want to recession proof your business and achieve massive results or do you want to lay down and play dead and hope things get better? It’s your choice!
About the Author:
By revealing missed profit opportunities, Marketing and Sales Expert Ron Romano increased the sales and profits for more than 10,000 small and medium sized businesses, entrepreneurs and independent sales agents. Now, you can use his FREE MARKETING AUDIT at: http://www.InstantMarketingReview.com to magically uncover all the hidden profit-making opportunities you’ve been missing out on. What you may find out might just change your life forever.
I should not be providing this information, the government should.
I believe the IRS should include a book like this to every American when they send you your tax forms. That way every American would know how to get their tax money back, because even though I call this “free money,” it really isn’t free. This is money that you gave to the government to pay your taxes and now you can get it back.
Here are a few basics on Government Money Programs that everyone should know:
1) Only 12% of Gov’t Money goes to the poor
Most Americans think that government money programs are for everyone else… for instance only the poor, minorities or friends of the president.
But, only 12% of Government Handouts go to the poor
And only 25% of Government Programs Have Income Requirements
The rich and famous, including Donald Trump, H. Ross Perot, Dick Cheney and George W. Bush, all made millions as private citizens with the help of government money programs. If they’re eligible, you certainly should be too.
2) Only 20% of Free Money is called “Grants”
Most free money programs are not called “grants” by the government, they’re called “direct payments.” It is very easy for someone not to know all about government jargon, but just a little research can clear up quite a few misconceptions. Don’t discourage yourself by focusing only on “grants” and dismissing the other 80%.
3) 50 Million people don’t even know they’re eligible
This is one of the most important points to keep in mind: The Government cannot and does not advertise programs that offer free money. But it’s out there, lots of it. You just have to invest time finding the programs.
4) You can’t make one phone call and just get a check in the mail
Getting government money is like looking for a job. When you knock on one door and ask about a job, and they tell you that you are not qualified, you don’t go home and wait for them to change their mind.
No Way. You would never hear back. You have to be persistent and go from one company to the next until you find a good fit.
5) Free Money keeps growing no matter who is sitting in the White House
We constantly hear about government budget cuts and that makes people believe that government money is going away or will soon be gone. But every year for the past 30 years the amount of free government money given out to individuals keeps growing. It keeps increasing no matter if it’s the republicans or the democrats who are in charge. With the new Obama administration especially, we will be seeing more offered to small business and entrepreneurs in the form of government money programs.
6) You certainly don’t need a professional grant writer
Nine out of ten times you will not need help in filling out an application. Most free money programs to pay for your bills, education, health care, housing and even business require just a few pages of blanks to fill in.
If you have trouble filling out an application for money, don’t hire a consultant. Go to the office that is handing out the money. The are obligated to help you fill out your application and they are in the best position to know what should be included.
7) You can apply for as many programs as you like
Don’t worry about how many programs you can apply for, If you see a program that you think might work for you, apply to it. Sure there are some programs that give money for specific reasons and if you get accepted from 2 separate places you will have to refuse one of the offers, but that’s still a nice position to be in.
8) It doesn’t always matter if it sounds like you don’t qualify
Here’s an example: “All the money is given out by August 30th”: The end of the accounting year for most government agencies September 30, but the agency can start giving out more money beginning October 1, and you can be the first in line.
In all likelihood, you can wait another 30 days for your money.
9) Information can often times be out-of-date
Every day programs come and go. Every day people change their address, phone number and websites. It is just a fact that these things happen in our modern society.
But remember, if a listing leads you to a non-working number or website, it does not necessarily mean that the program is gone. Call the agency listed in the program description and ask.
10) Don’t be intimidated by the idea that the applications are all long and confusing
Getting an application that is only one-page long is not unreasonable at all. Many of the government programs that give our grants really don’t need a lot of financial information because unlike a bank they are not worried if you don’t pay the money back. They don’t want it back. It’s free money.
Matthew Lesko is a best-selling author, government money expert and business mentor. His website, MyAmericanBenefitsPlan.com, is an interactive, online resource that serves as a hub linking entrepreneurs and free-money-enthusiasts alike. Lesko’s 30 years of researching government money programs and his extensive video talents are all going into the web service. Lesko holds free, online seminars on Wednesdays, live at UncleSamLive.com.
Article Contributed By Dr. Alan R. Zimmerman
When it comes to customer loyalty, nothing is more important than the trust you develop with your customers. Research from Texas A & M University says if customers see you as being trustworthy and reliable … and if customers see you fulfilling your promises … then they will become enthusiastic customers for life.
The same is true with your co-workers. If your employees see you telling the truth, even when it’s not easy or comfortable to do so then you’ll build an incredible bond of trust with them. And with that bond of trust will come more cooperation and motivation.
The lesson is clear. If you want your customers to remain loyal, you must earn and keep their trust. If you want a stronger team at work, you have to build a foundation of trust.
So trust is your ultimate competitive advantage.
Now, how do you build or re-build trust?
4 Ways to Build Trust, Gain Loyalty & Retain Employees and Customers for Life
1. Assume the best about your employees and customers
When something goes wrong, or when the other person disappoints you, start by assuming the best. Don’t immediately jump into the fray, pound your desk, froth at the mouth, and demand to know why your employees or customers did something so stupid.
Instead, honor the other person. Rather than focus on WHO’s to blame for what went wrong, focus on WHAT can be done about it. That takes the focus off the past and off the other person. It puts the focus onto the future where the two of you can work together.
Besides, if you jump in too quickly, blaming someone for what happened, you’ll often embarrass yourself. You may find out that you’re really the one to blame for the problem that occurred.
2. Stick up for your customers or employees when they’re in the right
You build trust when you speak out on someone’s behalf, especially when it’s not politically popular or interpersonally comfortable. Martin Luther King, Jr. said, “In the end we will not remember the words of our enemies but the silence of our friends.”
I’ll never forget the time I chaired the task force of a charitable organization. Over a period of time, it came to my attention that the organization had misused funds on several occasions. My task force members urged me to confront the Board and document my findings. They would be there to back me up.
I did that, but not one of the task force members backed me up when the top leaders lashed out in defense and aggression. If nothing else, I learned that Dr. King was right. It was the silence of my “friends” that I remember the most today.
3. Refuse to gossip
There’s something very alluring, and maybe even a little satisfying, about sharing a negative tidbit. It may make you feel a bit superior, but you’ve got to fight the urge to add to the gossip and the people bashing that may go on in the company cafeteria or behind a customer’s back. You just can’t do it.
The reason is simple.
Negative gossip almost always gets back to the person you are discussing. That’s just the nature of juicy, negative, sensationalized news. And to make matters worse, the version that gets back to the person you discussed is almost always worse than the version you shared.
4. Keep your promises
Nothing destroys trust faster than failing to keep your promises.
Think about it. No one ever forgets a promise. You tell your child you’ll take her to the amusement park, and she’ll remind you fifteen times that “you promised.”
You tell a colleague that you’ll get back to him, and he sees it as a promise. You tell a client, that an assignment will be finished by tomorrow and she sees it as a promise. And it doesn’t work to go back to them and say you forgot or you got busy. In their minds, you broke your promise, and the trust between the two of you is damaged.
So, if you want to build trust, the solution is simple. Keep your promises.
A final thought
Don’t get discouraged, if you’re in the process of building or re-building trust in a relationship. Trust takes time.
Just as it takes more than one block to build a fortress, it takes more than one action to build trust. It takes a lot of blocks, put down … over time … to get the results you want. It works the same way when you’re building trust. Go ahead and use the four trust building blocks I’ve just given you and you will:
– Become a better leader and manager
– Retain your employees – (Don’t forget … high employee turn-over = higher costs)
– Keep your customers who want to buy from you over and over again for life
– Achieve more than you ever thought possible
And, it’s all because trust is the “ultimate competitive advantage.”
About the Author
Best-selling author and Hall of Fame professional speaker, Dr. Alan Zimmerman has transformed more than a million people into better managers and leaders in the office and in the marketplace. For even more tips on how to build relationships with employees and customers that last a lifetime go to http://www.DrZimmerman.com and get his free e-book that’s filled with his most popular articles.
Article Contributed by Joanne Black
Have your phones stopped ringing yet? The economy is lagging and dragging. We’ve felt the effects in the United States. Now we’re seeing global implications.
So, how do you tackle economic uncertainty?
Cut advertising, travel, training, marketing, and discretionary expense line items? Cut purchasing? Ouch!
The pipeline starts to dry up and the anxiety level goes through the roof. Many people think that since there’s nothing they can do, they should just do nothing. But “nothing” is futile thinking.
What If You Could Reach Your Market Without Incurring Any Hard Costs?
The only budget you need to worry about is your simply your time… your time to ask for referrals!
You know about referrals. When a qualified prospect is referred to us, we get a new client typically between 70 and 90 percent of the time. Additionally, we are pre-sold. Our selling time decreases. Credibility increases. And, we ace out the competition.
There is no other business-development process that can claim these results. Results are the only thing that matters. And, now you will be able to achieve results simply by implementing the following 8 “Killer” strategies.
8 “Killer Steps” to Attracting New Business in a Lagging Economy
1. Broaden Your Perspective
What business are you in? Redefine and reinvent yourself. Determine how you can create a leap in demand for your products and services. Build new alliances and consider alternate distribution channels. Don’t go solo. It’s important to assemble a group of advisors and get their input and creative ideas. Include people who have differing points of view from you. Not easy, but critical.
2. Be Nimble and Innovative
You’ll never have all the facts. Make quick decisions. Be fearless and make tough choices. Create new uses for your products. Why not a new business model?
3. Dazzle Your Current Customers
Your current customers need care and feeding. Don’t ignore them at the expense of new business, because they are your best source for new business.
4. Prioritize Wisely
The most important activity for any salesperson is to do what’s “closest to cash” the first thing every single day—whether it’s following up with a prospect, writing a proposal, or closing a deal.
5. Become an Expert
Companies hire experts because they can’t afford to make mistakes. Position your company as the expert with a specific product or in a specific market niche. Become an expert and people will be more likely to refer you.
6. Stay Connected
If you want to get more referrals you have to network like crazy. Attend a minimum of one event a week. You never know who you will meet and what you will learn. Never let your network go down. Networking is an essential referral marketing activity. So go make connections and build your business.
Talk to people and find out how you can help them. How is their business doing? Are they impacted by the lagging economy? How? Don’t email, call. You make connections by talking to people and by spending the time to have a robust conversation.
7. Don’t Cut Prices, Increase Value
There’s a lot of chatter about cutting prices in a lagging economy. Many small business owners think businesses are cutting back, so prospects don’t have money for their projects. But, by cutting prices, you’re cutting your profits even further. Instead, consider how to “get in and get started.” Divide your offering into smaller chunks, get results, and create traction. Or, give more value. When you offer high-value products and services, people will refer you and you will get more sales, even in a recession economy.
8. Commit to Building Your Referral Business
Referrals are always terrific, but they mean even more in a lagging economy. Don’t let the lagging economy trickle down on you. Take charge and make your phone ring again! Let your prospects know how much you care about them. Tell and show just how much you appreciate their business. Inform them that you’d like to help people just like them. And, don’t forget to thank your prospects and clients for their referral.
Follow these tips and you will get more referrals. You will attract new business. You will get more clients. You will accelerate your sales. And, you will achieve higher results without increasing your cost of sales. In fact, there’s a great chance that you will decrease your costs!
America’s leading authority on referral selling and founder of No More Cold Calling, Joanne Black helps salespeople, sales teams, and business owners get more referrals and attract more business fast without increasing costs. Now, discover how to turn prospects into clients more than 50 percent of the time even during a down economy with her Recession-Proof Your Business Emergency Kit at: http://www.nomorecoldcalling.com/products.html