Why Simple?
Why do we only work with specific software? Why do we seem to dislike 'Sage' so much?
Consider how much your software costs.
Does it just cost the licence price? No- your software has cost much more than that.
OK what if we add the cost of specialists to install it, plus the cost of training to use it? No- it’s more than that.
OK what if we add the cost of specialists to install it, plus the cost of training to use it, plus the cost of licence renewal or helpline fees? Well the real cost is even more than that.
OK ehat if we add the indirect costs charged by your external accountants running off their year end reports, plus the time spent by you and your senior colleagues running off the reports you need to manage your business? No- its even more than all of that.
The key opportunity cost of any software is the time spent by your bookkeeping and admin staff in the day-to-day use of the program. Simple Accounting believes that getting the maximum productivity from these relatively junior staff is the key to getting the best system. This is an unusual point of view.
That is why we have an unusual list of criteria for testing the software we approve.
Is my system Simple?
Try these tests to see if your current system is simple.
- How much money are you owed by your customers? How many clicks does it take you to find out? With a Simple Accounting System it is just be one click from the main welcome screen. With one mouse click you can see who owes you what and for how long. You can drill down to look at individual invoices.
- Do your Net Assets figures tie up? Have a look at your last set of formal year end accounts. At the bottom of the balance sheet will be a figure saying funds or capital. This is your investment in your business. It equals a figure just above it labelled ‘Net Assets’. This is the cash value of the assets in the business less its liabilities. Now have a look at your accounting system. Within four clicks of the main screen you should be able to see the same ‘Net Assets’ figure reflected in your books.
- Can you justify last year’s stated profit in detail? Have a look at your last set of formal year end accounts. At the bottom of the profit and loss will be a figure saying Net profit after taxation. Now have a look at your accounting system. Within four clicks of the main screen you should be able to see the same ‘Net Profit’ figure reflected in your books.
If it isn't you need Simple Accounting.
Simpler Accounting
Another reason we are able to do more than most accountants is that we try to simplify your business' tax affairs and its administration. The easiest way to reduce your tax bill is to make your affairs simple. We try to avoid doing things that the HMRC do not like, where the bureacucracy is complete and where the tax saved is marginal. We help you to put business costs which are not allowed for corporation tax returns or personal business tax returns into clearly separated nominal accounts.
Examples include:
- We repay any director's overspent loans accounts Web do not leave any director's loan balances in excess of £5000 that would otherwise attract a section 4440 charge
- We separate out entertaining of customers
- We separate out Christmas boxes for suppliers
- We make sure you avoid paying parking fines for business owner cars and personal tax advice paid for by the company
- We recommend against Company cars unless they are extremely fuel efficient. Company cars have become something of a tax liability in limited companies
- The charge for fueling a car for the company has now become very steep, we therefore, try to guide our customers to more cost effective benefit policies
- We separate out Items charged on P11Ds. We try to get as many of these covered by expenses dispensations as possible. The P11D alters the personal tax affairs of an employee and is therefore better to try to get recurring expenses covered under a PAYE settlement agreement. This can also lead to a tax saving, where the benefit in question comes under Class 1a rather than Class 1 National Insurance.
- We separate out VAT surcharges
- We separate out costs of legal actions against the HMRC
- Avoid paying for school fees and other bills paid in the name of a firm’s employee
- Avoid paying for fines for the late payment of tax
All this leaves the bookkeeping and the accounts we produce fully in line. Simple.
It also leaves us more time to consider your overall tax position ad business efficiencies we may help you achieve.
Next Step:
Please contact us if you need further advice.
Call us now on 01422 847500
