Why Use QuickBooks for Bookkeeping
Why Use Quickbooks For Your Business Accounting
If you pay your income tax liabilities late you will be charged interest. Interest may be charged or added to repayments of income tax. This article will help you identify the dates on which incometax is payable and outlines for you how HMRC calculate the interest due on underpaid or over paid tax. This article will also explain how HMRC considers financial liabilities or payments that may arise as a result of non-compliance with UK tax law. London Bookkeepers are experts in the field of UK Self-assessment and as such offer tax advice as part of our London bookkeeping service to all our London Small to medium sized business clients.
Under the self-assessment system income tax which is not deducted at source is payable as follows:
1. The taxpayer’s income tax liability for the tax year in relation to all sources of income is aggregated as a total income. This tax liability is increased by the amount of any Class 4 National Insurance contributions which are due for the year.
2. Payments on account of the total liability are due on 31 st January in the tax year and on the following 31 st July. For example, the payments on account for 2018-19 are due on 31 st January 2019 and 31 st July 2019. Each payment on account is equal to 50% of the taxpayers liability to income tax and Class 4 National Insurance Contributions for the previous tax year, less any tax which was paid by deduction at source ( including tax paid by means of the PAYE system ). Note that:
Payments on account are not required if the taxpayer’s total liability to income tax and Class 4 National Insurance contributions for the preceding year (less tax deducted at source) was under £1000.
- Payment on account are also not required if more than 80% of the taxpayer’s liability for the previous year was satisfied by deduction of tax at source.
- A taxpayer who believes that his or her liability for the current year will be less than in the previous year may claim to make reduced Payments on account. There are penalties for making such a claim fraudulently or negligently.
- A balancing payment (Or repayment) is normally due on 31 January following the end of the tax year. For example, the 2018-2019, balancing payment is due on 31January 2020. But note that:
1. If a return notice is issued late (i.e. after 31 October following the end of the tax year to which it relates ) and this has not been caused by the taxpayer’s failure to notify his or her chargeability to tax, the balancing payment is due three months after the date of the notice.
2. If a self-assessment is amended by the taxpayer or by HMRC (or if a discovery assessment is raised) any additional amount payable is due 30 days after the date of its notification to the taxpayer or on 31 st January following the end of the tax year, whichever is the latest. However, this rule does not defer the date from which interest accrues on the additional tax. The amount of the balancing payment is equal to the income tax and Class 4 National insurance contributions liability for the year, less any tax deducted at source and less the Payment on Accounts. The taxpayer’s liability to Class 2 National insurance contributions is added to this payment, along with any capital gains tax payable for the year.
Quickbooks Accountants London Bookkeepers Explain Why Quickbooks Is Good For Your Business
QuickBooks is serving the needs of small and medium business for over 20 years. Intuit identified a need to better serve small to medium size business or complexity.
QuickBooks online or cloud accounting was designed specifically with these businesses in mind.
QuickBooks Online (QBO) is the easiest and flexible accounting software bridge that adapts to the way of your business. It allows multiple users with everything to manage our financial data properly.
With QBO you can mainly:
✓ Access anyway (desktop or mobile) and anywhere you want at any time with
✓ HMRC approved MTD compliance software for vat return.
✓ Easy to handle all day-to-day transactions including sales invoices, payments,
deposits & receipts.
✓ Easy to handle all expense transactions like bills, cheques, credit and debit card
✓ Easy to download bank transactions using your client’s online banking.
✓ Easy to manage bank deposits and account reconciliations.
✓ Easy to manage small business payroll system.
✓ Easy to create business reports.
Other key benefits if you have QBO, Such as:
- Saves your time because:
▪ Can access anywhere & anytime.
▪ You don’t need to be on site at all the time.
▪ Software Speed and productivity.
▪ Automatic facility to send and receive invoice/sales receipt to clients.
▪ Automatic Customer Charges/Billing for time-saving.
▪ No need to transfer data from the accountant’s copy.
▪ Automatic e-mail reporting system – can set up memorized reports to specific
▪ Secured sharing system.
▪ An automatic back-up system to the cloud.
▪ Activity Log system – you can see who is using and when..
▪ Bank transactions automatically downloaded.
▪ QuickBooks Online has class & location tracking.
- Easy to use
▪ Income list – upgraded tool to manage cash flow.
▪ Attach files to bills, sales receipts, estimates, invoices, check, credit card
expenses, cash expenses & etc.
▪ Upload expense/receipt invoices image through mobile.
▪ For Accountants- Multiple AR/AP lines in journal entries!!!
▪ Focus on data analysis versus data entry.
▪ You could automatically match with the imported transactions against bank
▪ No need to worry about data version or working on multiple versions.
And, the QBO accounting system also focuses on different features for different types
of business. Such as:
1. Appointment Based businesses.
Businesses that offer services by appointment. Such as; Doctors, Salons,
Veterinarians, Personal trainers, Chiropractors, Driving instructors & Mechanics.
2. Retail and eCommerce businesses.
Businesses that sell or resell products, such as; Food trucks, Restaurants,
Coffeeshop, Hardware stores & Furniture stores.
3. Professional and field services businesses.
Businesses that get paid by the projects, job or gig. Such as; Consultants,
Photographers, Architects, Entertainers & General Contractors.