How To Produce Taxi Driver Accounts Plus Tax Returns In Less Than 2 Hours
Since nearly all taxi drivers, but definitely not all, have little accounting or bookkeeping knowledge the lower the level of expertise required the more desirable this accounts package will undoubtedly be. Data entry basically includes just 3 records, being an excel spreadsheet for taxi receipts; another for taxi expenses plus a further worksheet where assets for instance a vehicle could be recorded.
Taxi dunfermline 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 used in the taxi driver accounts sheet.
Cash and bank spreadsheets aren’t provided as not necessary by taxi drivers as taxi drivers do not need to create a balance sheet.
Along with entering purchases on the taxi expense sheet the only real other entries required from the taxi driver to make 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 already been preset with both depreciation rates and the administrative centre 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 UK declare that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or the other and only by the end of the financial year when it becomes clear that is probably the most tax efficient.
This taxi accounts package compares both mileage cost and the automobile running cost and automatically selects probably the most expensive. This ensures the best costs are selected in to the calculation of the net taxable profits and highest cost equals lowest tax bill.
Also in the taxi accounts file can be an excel spreadsheet made with the same layout, colour codes and box numbers as 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 required leaving the taxi driver only to click print to produce the self assessment tax return.
Finally having calculated the web taxable profit for the year the accounting package also offers a tax calculator that calculates the amount of tax and national insurance to be paid.
The taxi driver accounts package has been tested often and the annual receipts and expenses for a full year take approximately 2 to 3 3 hours to enter, and also have been completed in under 2 hours. The finish product is really a full set of taxi driver accounts like the self assessment tax return.
Both couriers and van drivers have similar businesses to taxi drivers in that they move items from one place to another in a similar way in which taxi drivers move people from one location to another. And due to the similarity running a business activity then this taxi accounting package will be equally ideal for couriers and van drivers.