How To Produce Taxi Driver Accounts Plus Tax Returns In Less Than 2 Hours
Since the majority of taxi drivers, but definitely not all, have little accounting or bookkeeping knowledge the lower the level of expertise required the more suitable such an accounts package will undoubtedly be. Data entry basically consists of just 3 records, as an excel spreadsheet for taxi receipts; another for taxi expenses and also a further worksheet where assets for instance a vehicle could be recorded.
Taxi receipts are entered on some excel worksheets within the taxi income work book preset with each day of the financial year. Weekly and monthly totals are added and transferred through the linking system from the taxi bookkeeping sheets to the taxi financial accounts sheet.
Taxi expenses are listed on a series of twelve monthly spreadsheets that have preset columns with appropriate headings for taxi drivers to record office and rental costs, fuel bills, other vehicle costs and licence fees. The total of each expense is entered on each row and a single letter used to then analyse the taxi expense to the column required. Much like the taxi income sheet the columns are then automatically added with a check up on data entry accuracy before being transferred to the taxi driver accounts sheet.
Cash and bank spreadsheets are not provided as not required by taxi drivers as taxi drivers need not create a balance sheet.
Along with entering purchases on the taxi expense sheet the only real other entries required from the taxi driver to produce a group of taxi driver accounts would be to also enter vehicle and any other assets purchased on the fixed asset spreadsheet. The fixed asset spreadsheet having recently been preset with both depreciation rates and the capital allowances that taxi drivers can claim. The taxi accounts software is then complete.
The financial accounts file contains formulae to make a monthly profit and loss account which includes the taxi capital allowances from the fixed asset schedule.
A distinctive feature is that both mileages covered and vehicle running costs could be entered. The tax rules in the united kingdom state that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or another and only by the end of the financial year when it becomes clear which is probably the most tax efficient.
Taxis in dunfermline accounts package compares both the mileage cost and the vehicle running cost and automatically selects probably the most expensive. This ensures the best costs are selected in to the calculation of the web taxable profits and highest cost equals lowest tax bill.
Also in the taxi accounts file is an excel spreadsheet designed with the same layout, colour codes and box numbers because the inland revenue self assessment tax return. The taxi self assessment tax return is completed automatically by the cabsmart taxi accounts software. No entries are needed leaving the taxi driver only to click print to create the self assessment tax return.
Finally having calculated the web taxable profit for the entire year the accounting package also offers a tax calculator that calculates the volume of income tax and national insurance to be paid.
The taxi driver accounts package has been tested many times and the annual receipts and expenses for a complete year take approximately 2-3 3 hours to enter, and also have been completed in less than 2 hours. The end product is really a full group of taxi driver accounts including the self assessment tax return.
Both couriers and van drivers have similar businesses to taxi drivers in that they move items in one place to another similarly where taxi drivers move folks from one location to some other. And because of the similarity running a business activity then this taxi accounting package would be equally ideal for couriers and van drivers.