UK Self employed Accounting Software and Self Assessment Tax Returns

In the UK anyone receiving earned income which is not taxed under the employers PAYE system is technically self employed. Anyone who is self employed and running a business in the UK must register that business with HM Revenue and Customs within 3 months of starting that self employed business and failure to do so can lead to penalty fines.

All self employed businesses must keep records of the financial transactions and submit these accounts annually to HM Revenue and Customs in the format of the self assessment tax return which are supplementary pages included in the self employed annual tax return.

Different standards for accounting by self employed business are applicable compared to the accounting requirements of a limited liability company and consequently much simpler Accounting Software can be applied. Accounting Software for a limited company invariably requires a double entry system of accounting that produces not just a profit and loss account but also a balance sheet. The Accounting Software has to deal with business bank accounts, debtors and creditors and produce reconcilable results.

While advisable for self employed businesses to maintain a separate bank account it is not an essential requirement. The Accounting Software used by anyone self employed should keep accurate records of fixed assets although it is not essential that this Accounting Software also produces a balance sheet. With these factors in mind Accounting Software for the self employed can be much simpler and greatly advantageous if that Accounting Software also produces the numerous and sometimes onerous burden of HM Revenue and Customs tax returns and working papers.

Self Employed Accounting Software Requirements

Accounting Software for anyone Self Employed does not have to be double entry. The Accounting Software can be a single entry system which makes the value of using Accounting Software based upon excel spreadsheets feasible and due to the simplicity highly desirable. Such Accounting Software being excel based is fast and easy to use, utilising all the benefits and advantages excel offers. Accounting Software that is also highly visible at the click of a button. Accounting Software on a database hides the financial transactions that the Accounting Software has to query to retrieve the required information. It is this element of an Accounting Software database that often requires some technical accounting knowledge to operate efficiently. Accounting Software written on excel spreadsheets is, due to its visibility, much easier to use and understand and requires little or no accounting experience.

Accounting Software written on excel spreadsheets makes an ideal solution for the self employed businessman. Good financial records are the key to the success of any self employed business and especially to the value of Accounting Software. A quality Accounting Software package is an essential component of your business to identify potential problem areas and capitalise on success to drive the business forward.

Accounting Software and HM Revenue and Customs Returns

Different types of Accounting Software are available for the Self Employed and some of this software has been specifically designed to cater for the precise size and requirements of the self employed business. There are basic Accounting Software packages available for the self employed business that is not vat registered and have no employees. Standard Accounting Software packages for the self employed business that is vat registered. The vat threshold limit at which businesses are liable for vat is £61,000 up to April 2007 and subject to possible changes after that date. Advanced and more sophisticated Accounting Software for the self employed who also employ staff are available with integrated payroll software included in the Accounting Software packages.

The best Accounting Software will not only produce your self employed financial accounts but also produce the HM Revenue and Customs returns. Accounting Software that has automated the vat returns each quarter, Payroll Software that completes the time consuming P11 employee deductions working papers and simplifies the P60 year end certificates and P35 employers’ annual paye return.

And most crucially Accounting Software that automates the Self Assessment tax return.

Accounting Software and Self Assessment Tax Returns

The Self Assessment tax return is a complex document for the initiated. It doesn’t have to be, for a small business with turnover under £15,000 the self assessment tax return can be completed by entering totals of self employed sales, expenses and net profit on page one. For larger self employed businesses more complex calculations are required. Capital Allowances, balancing charges, base periods and expense analysis are beyond many self employed. Self employed businessmen are experts in their field of operations and often require help with these accounting based elements that an accountant or Accounting Software can provide.

The best Accounting Software can take the simple lists of financial transactions and by clever use of formulae built into excel spreadsheets transform the year end experience by automating the production of the self assessment tax return. It isn’t impossible, if a calculation can be made mathematically then a quality Accounting Software package can automate the process using formulae within excel to produce the calculations and offer the Self Employed businessman an automated Self Assessment Tax Return.

A function that Accounting Software can do at a fraction of the price an accountant might charge for this service. Accounting Software for the Self Employed should produce the Self Assessment tax return as the end product. The Self Assessment tax return is the Self Employed end product of his financial endeavours and therefore the Self Assessment tax return has to be the end product of any quality Accounting Software.

Sage Accounting Software For Everyone

Before you being planning your business there is something you must prepare for. Here is a hint: Sage accounting software is often chosen. That is right, every business must prepare for a way to handle their financial needs. In the past, revenues, expenditures, payrolls, accounts payable, and all other such accounting subjects were painfully written down in little boxes. Digits were misread, totals were miscalculated, and items were misreported. The number of potential mistakes was high. However, that was the past and it is now the present.

In the present, there are many accounting software solutions available. In the present, people no longer wait until they have had it up to their head in loose papers and unclear reports. Now accounting software is a solution before any business starts. Sage accounting software is one of the biggest accounting software solutions that people choose. Sage accounting software is used by people worldwide and has helped businesses all over the world to manage all their revenues, expenses, and other matters easily and efficiently.

Because Sage accounting software is so widely used, most users also appreciate the support that it gives. If you are going to buy from the company directly, you can make use of their online Sage accounting software support. On their website, there are multiple ways to contact the Sage accounting software staff in case of any questions or support you need when using the software. A customer support inquiry form can be filled out to answer whatever questions you may have regarding the product or use of the product. No matter where you are located, what type of Sage accounting software product you are using, or what type of customer you are, Sage accounting software support helps you in many ways.

Another advantage that Sage accounting software presents is that there are options for different platforms. Mac users can be happy to know that there is Sage accounting software for Macs! Sage accounting software is Mac friendly so that Mac users have one more option to add to their list of accounting software. You can read more free advice on Accounting Software at

Although sage accounting software was designed with businesses in mind, there are plenty of families and individuals who use it to balance out their personal finances. Needing to organize all the expenses of life and wanting to consolidate all the information involved, some decide they need a home accounting software. If sage accounting software can be such a powerful tool for companies, what prevents it from being used in the home? Using software to balance the books may even eliminate the need to hire someone to do taxes or keep track of the monthly and periodic bills. Sage accounting software truly provides many solutions. Whether they are home users or small businesses, Sage offers affordable solutions for all.

Difference Between ERP System And Accounting Software

Business Management Software has undergone a lot of changes and upgrades. Every big organization is looking for including Enterprise Resource Planning software. Since long all have been using accounting software and it is essential to know what the difference between ERP and accounting software is. Enterprise Resource Planning or ERP covers functional areas like Human Resources, Sales and Logistics, Finance, Production, Customer Relationship, Payroll, etc. This is used for making optimum usage of the resources of a business organization.

The ERP system is utilized to enhance the production, sales, schedule production, utilize full capacity and reduce inventory. The functionality of ERP software is to manage the intangible assets, human resources, financial resources and materials. It covers a range of functionality which is not covered by accounting software. It also involves intangibles like customer relations, human work hours, product lifecycle and performance units. The difference between ERP and accounting software lies in this factor.

Accounting is like a subset of an ERP system. Software for accounts deals with accounting transactions like accounts receivable, accounts payable, balances and payroll. The modules often used in software is General Ledger, Expenses, Sales Order, Purchase Order, Billing and Time sheet. The difference between ERP and accounting software is not recognized by all and the term is often used interchangeably. As the industry is moving ahead with times, the accounting software usage is fading away as more and more people are using ERP software.

Slowly the ERP software may take over the accounting software completely in future. The business all over the world is feeling the need to do away with the traditional accounting system and adopt the advanced ERP packages available in today’s market. The basic and primary difference between ERP and accounting software is that the accounting software handles individual business accounts whereas Enterprise Resource Planning or ERP software handles the entire business accounts and functions of an organization. The ERP caters to all the possible functions of the business and helps to provide a platform to integrate the business functions. It allows for seamless flow of information between these functions. The accounting software does not provide for this kind of functionality. It focuses more on the statistics and numbers of the resources, budgets, departments and reports.

The difference between ERP and software for accounting is that ERP systems can analyze the trends, improvise on the turnover times of the business functions and recognize the shortcomings. All these things aid in optimizing the resources such as materials, man power, machinery, etc. This feature speeds up the client’s business process as it complies by the best standards used in the relevant industry. The need to switch to ERP system or continue with the traditional accounting system depends on the business and the requirements of the client. If the client is expecting growth, the client should opt for enterprise resource planning system instead of a conventional accounting system. This will ensure that the growing business adapts well and makes optimum use of the resources. It is essential to understand the difference between ERP and simple software for accounting to know which one will suit your organization better.