![]() ![]() When looking down the online software bank feed, it is very easy to accept the match suggested by the software. As a result we spend a lot of time deleting food items which are not necessary subsistence costs. Similarly, there are specific rules from HMRC which need to be followed when it comes to claiming for out of office refreshments or subsistence claims.įrequently we see business owners claiming for every cup of tea or all their lunch items when they are actually working in their office. Nor can they claim for all their private vehicle's fuel, servicing and repair bills.Īgain, we spend a lot of time going through the software and taking out any vehicle transactions that should not be claimed for. they cannot claim for driving to and from the office/business premises. Unless the business has purchased its own company vehicles, business owners or employees should only claim for mileage that is incurred for business journeys only, i.e. Much time is spent working our way back through all the expense items and recategorising them to the correct code. The general expenses code should only be used when the transaction isn't covered by any other nominal code in the software. Logging everything as a general expenseīusiness owners will quite often log everything to the 'General Expenses or Sundries' code and then wonder why their profit and loss account isn't providing them with a detailed analysis of where the money has been spent!.This means that profit and loss statements and tax calculations will be correct. We spend a lot of time going through online software to ensure 'every debit has a credit' and that all transactions are recorded accurately to the correct nominal codes. Quite often users only post into one nominal code, which ultimately distorts the figures which are fed through into the profit and loss account. So every business transaction (whether an invoice or a receipt) will affect two different accounts or nominal codes in the software. Ignoring the principles of double-entryĪll online accounting packages still work on the system of double-entry bookkeeping.The main problems with online accounting software ![]() Unfortunately, effective bookkeeping and producing accounts requires a 'little' more effort than simply taking a photo of a receipt on your phone and the accounts package will automatically log the information onto the system to enable you to produce your accounts.Īt DWilkinson&Company we are increasingly being asked to help businesses to sort out issues which have occurred when they have been trying to use online accounting packages without the appropriate training and support.īelow we have set out some of the common issues we come across. They supposedly show how simple and straightforward their products are to use and how they can make a positive difference to how you run your business. All of these software companies have spent millions of pounds in the past few years in marketing and advertising campaigns. ![]() The main online accounting packages available in the UK today are Xero, QuickBooks and Sage Business Cloud Accounting. Key players in the online accounting market ![]() They now have to digitally link their VAT information from their accounting software or spreadsheets directly to HMRC's MTD platform.įor other businesses, the move to online accounting has been a way to work more efficiently. For VAT registered businesses who have to comply with HMRC's Making Tax Digital (MTD) scheme, this has become a legal requirement. Over recent years hundreds of thousands of businesses have moved from desktop accounting packages to cloud based online accounting software. ![]()
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