Since nearly all taxi drivers, but definitely not all, have little accounting or bookkeeping knowledge the low the level of expertise required the more suitable this accounts package will 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 like a vehicle could 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 expenses are listed on a series of twelve monthly spreadsheets which 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 an individual 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 transferred to the taxi driver accounts sheet.
Cash and bank spreadsheets aren’t provided as not required 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 other entries required from the taxi driver to make a set of taxi driver accounts is 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 administrative centre allowances that taxi drivers can claim. taxi at the ceiba ferry 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 can be entered. The tax rules in the united kingdom declare that drivers cannot claim both mileage allowances and vehicle running costs. It has to be one or another and only by the end of the financial year when it becomes clear which 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 highest costs are selected in to the calculation of the web taxable profits and highest cost equals lowest goverment tax bill.
Also in the taxi accounts file is an excel spreadsheet designed with the same layout, colour codes and box numbers because 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 net taxable profit for the entire year the accounting package also offers a tax calculator that calculates the quantity of income tax and national insurance to be paid.
The taxi driver accounts package has been tested many times and the annual receipts and expenses for a complete year take approximately 2-3 3 hours to enter, and also have been completed in less than 2 hours. The end product is a full set of taxi driver accounts including 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 because of the similarity in business activity then this taxi accounting package will be equally ideal for couriers and van drivers.