Accounting Software Strengths
Easy to use by non accountants requiring no previous
accounting knowledge and is basically a list of sales and a
list of purchases on preset excel spreadsheets. Each
workbook is arranged as 12 monthly spreadsheets with preset
columns and uses an entry code letter to analyse both sales
and expenditure.
Cash and bank spreadsheets are included as optional extras
for those businesses that require them with a built in
automated bank reconciliation. The sheet is designed to be
completed by copying the figures from the bank statement
into the bank spreadsheet and the bank reconciliation is
achieved by also entering the statement total which is
automatically checked against the entries made.
Monthly profit and loss account also includes a financial
health check based upon an automated tax forecast to enable
businesses to monitor their financial performance. By
entering drawings the package then compares the net profit
made with the likely tax liability plus the drawings.
Quarterly vat returns are generated for vat registered
business and is also suitable for non vat registered
business. To produce a vat return clients simply go to the
vat file and select the quarter end date from a drop down
menu and the figures for the vat return are automatically
generated.
The vat calculations can be disabled by non vat registered
small businesses by simply changing the standard vat rate
from 17.5 to zero making the accounting software suitable
for both vat registered and non vat registered businesses.
The accounting package includes a stand alone sales invoice
generator which requires invoices generated to be manually
input into the sales sheet.
The fixed asset schedule is preset with the capital
allowance tax rates to automatically calculate capital
allowances when fixed assets are entered. Depreciation is
also automatically calculated with preset percentages that
can be changed as required.
A major benefit of using this small business bookkeeping
software is the templates are arranged in such a way to
automatically generate an excel copy of the self assessment
tax return. The excel self assessment tax return is
arranged in the same layout as the official inland revenue
form with the same box numbers making it easy to copy the
figures from one to the other for submission.
Accounting Software Weaknesses
The Self-employed accounting software UK is based upon
single entry of transactions and does not produce a balance
sheet which is an optional requirement for self employed
and therefore not a problem for the vast majority of
businesses. DIY Accounting actually recommend clients who
are self employed and wish to produce a balance sheet to
use their Limited Company accounts package which does
produce a balance sheet being based not on single entry but
on double entry principles. The small business accounting
software is suitable for a single tax year, the latest
being 2007-08 and does not cater for accounting periods
other than April to April. There are benefits in anyone
self employed adopting the standard April to April
financial year as this avoids tax allowances from two
separate years being a feature of the accounts. When used
by small businesses using the cash accounting system the
bookkeeping entries to the sales and purchase sheets must
be entered according to the dates money is paid or received
rather than the dates invoices were issued. At the end of
the financial year any invoices not yet entered require to
be listed to adjust the final profit and loss account
figures. This a major disadvantage if using the vat cash
accounting scheme rather than the Accounting Software being
reviewed.
Very Low Priced
At £12.99 the accounting software is basically
available for loose change and will save many businesses
the need to employ an accountant potentially saving
hundreds of pounds in professional fees. For the financial
year 2006-07 the basic package for non vat registered
business is available at just £9.99 and the standard
accounting software for vat registered small business is
£12.99.
Other Features
The product has a stock control feature to monitor any
stock losses. The small business accounting software
contains a wages interface that fully integrates the DIY
Accounting Payroll Software when those files are saved into
the same folder as the accounting software files. Being
written on excel spreadsheets all transactions are visible
and capable of being changed by for example overwriting any
errors as opposed to a database system that requires new
transactions to be entered to reverse previous entries. The
sales and purchase spreadsheets include columns for
entering CIS tax deductions and payments and the
certificate numbers. The CIS tax being then automatically
entered on the self assessment tax return. As the small
business accounting software is written on excel
spreadsheets then it is essential that users have a version
of excel from 1998 onwards installed to use the program.
The accounting software also works fine with an Open Source
spreadsheet package.
Conclusion: to Buy or not to Buy
Exceptionally good value, very easy to use and produces
exactly what every small business requires, automated
accounts requiring no bookkeeping skills and no previous
accounting experience with the valuable end product of a
fully automated self assessment tax return.
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Terry Cartwright is a qualified accountant in the UK
designs Accounting Software at
http://www.diyaccounting.co.uk/index.htm providing complete
accounting solutions
http://www.diyaccounting.co.uk/smallbusinessaccounting.htm
for small to medium sized business with payroll software
at http://www.diyaccounting.co.uk/payroll.htm
for 1 to 20
employees that automates the revenue payroll tax returns.
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