Since the majority of taxi drivers, but certainly not all, have little accounting or bookkeeping knowledge the low the level of expertise required the more desirable such an accounts package will undoubtedly be. Data entry basically includes just 3 records, as an excel spreadsheet for taxi receipts; another for taxi expenses plus a further worksheet in which assets such as a vehicle can be recorded.
Taxi receipts are entered on some excel worksheets within the taxi income work book preset with every 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 near me are listed on some 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 every 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 which includes a check 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 do not need to produce a balance sheet.
Besides entering purchases on the taxi expense sheet the only real other entries required from the taxi driver to produce a set 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 unique feature is that both mileages covered and vehicle running costs can be entered. The tax rules in the united kingdom declare 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 that is probably the most tax efficient.
This taxi accounts package compares both 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 net taxable profits and highest cost equals lowest tax bill.
Also in the taxi accounts file is an excel spreadsheet designed with exactly 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 and then click print to produce the self assessment tax return.
Finally having calculated the net taxable profit for the entire year the accounting package also has a tax calculator that calculates the volume of income 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 2-3 3 hours to enter, and have been completed in less than 2 hours. The end 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 in one place to another similarly in which taxi drivers move folks from one location to some other. And due to the similarity running a business activity then this taxi accounting package will be equally ideal for couriers and van drivers.