Since the majority of taxi drivers, but definitely not all, have little accounting or bookkeeping knowledge the low the amount of expertise required the more suitable 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 and also a further worksheet where assets such as a vehicle could be recorded.
Taxi receipts are entered on a series of excel worksheets within the taxi income work book preset with each 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 some 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 every expense is entered on each row and a single letter used to then analyse the taxi expense to the column required. As with the taxi income sheet the columns are then automatically added which includes 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 need not create a balance sheet.
As well as entering purchases on the taxi expense sheet the only real other entries required from the taxi driver to produce a group of taxi driver accounts is to also enter vehicle and any assets purchased on the fixed asset spreadsheet. Taxis near dunfermline fixed asset spreadsheet having recently been preset with both depreciation rates and the administrative centre allowances that taxi drivers can claim. The taxi accounts software is then complete.
The financial accounts file contains formulae to produce a monthly profit and loss account that 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 UK declare that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or another and only at the end of the financial year when it becomes clear which is probably the most tax efficient.
This taxi accounts package compares both the mileage cost and the vehicle running cost and automatically selects probably the most expensive. This ensures the highest costs are selected into the calculation of the net taxable profits and highest cost equals lowest tax bill.
Also in the taxi accounts file can be 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 needed leaving the taxi driver and then click print to create the self assessment tax return.
Finally having calculated the web taxable profit for the entire year the accounting package also has a tax calculator that calculates the volume of 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 have been completed in less than 2 hours. The finish product is a full group 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 in one place to another similarly where taxi drivers move people from one location to another. And due to the similarity in business activity then this taxi accounting package would be equally suitable for couriers and van drivers.