Accounting Software for MTD

[Pigeon_Droppings2]

What I did from the very beginning was given each transaction in my main business account a unique number...in Xero I can add this number to a description field. Has helped me a lot when I've needed or been asked about a particular expense item.

I read today people are saying...MTD=making tax difficult

 

[premmington]

What I did from the very beginning was given each transaction in my main business account a unique number...in Xero I can add this number to a description field. Has helped me a lot when I've needed or been asked about a particular expense item.

I read today people are saying...MTD=making tax difficult

I just opened a second MTD account in the last hour for unincorporated landlord activities.

Been filling the detail in and setting up a bank feed from a different bank account to my workshop activities.

@Pigeon_Droppings2 - that quote - "MTD=making tax difficult " - made me smile mate...

 

[GRW]

What I did from the very beginning was given each transaction in my main business account a unique number...in Xero I can add this number to a description field. Has helped me a lot when I've needed or been asked about a particular expense item.

I read today people are saying...MTD=making tax difficult

Quickbooks (& Sage iirc) generates a sequential Estimate number (which you can edit to suit your business) if you use that feature (which even the most basic one includes).
It auto-links the final invoice number to this Estimatre number when you "convert to invoice" (I.e. the system replicates all your entries on the Estimate to the invoice as well as links the 2 docs).

So I raise the Estimate as soon as a job comes in - as that gives me a unique "Job Number" that I put on the old-fashioned paper booking-in/job sheet to identify it (a dual-purpose bit of paper so the boys can book a job in easily if needed - and which they use to check-off what parts of the job are done so we know status/progress/changes.
(The job itself - e.g. an engine block gets tagged with the same number to make sure the right engine gets the requested work).
So my QB Estimate number gets used in a wider context as a Job number - so the floor knows what job, what dcope of work etc - and I can call the job up on PC easily.
If the job requires parts- I cost them ASAP- and add details on the PC Estimate.... & when I order those parts - again I use the Estimate number - as a Purchase Order Ref. (I know a lot of garages just use the car Reg - but we don't always have a reg & this one common Est. No. Ties it all together..... so when a box of parts arrives - its delivery docket tells us right away - which job those parts are for.

So with a bit of pre-thought you can use these "Accounting" systems as a sort of simple "Business Management System".

I did create a whole ISO9001 Quality System which a previous employer had to have to get his big contracts... based broadly on the above, with a simple Folder System and using Word Files/names & Spreadsheet Costing Templates with a QB Est No. for the Quotations & Detailed Costings.... that the annual ISO auditor liked for its simplicity - and that perhaps 10-years on that firm still use.

I don't know MTD... but if its the same basic format as QB, Sage and our Accountant says - Xero, then it has potential to be an asset.

 

[Craig-SM]

@Munkul - customers details - I going for reg number for christian name and colour/make of car for surname (unless I know who your are).

Do you not have the option to create a custom field for registration numbers as well as mileage on the invoice? If you do then use them on a cash account customer. It will make it easier to search for invoice by registration number as well as keeping a record of mileage. The auto matching in transactions will still find the invoice for the payment and highlight for you to check before accepting.

 

[carbonarc]

Hi awemawson. Have you looked at HMRC details concerning Self Assessment for tax matters regarding your joint income connected with your business arrangements?

 

[awemawson]

Hi awemawson. Have you looked at HMRC details concerning Self Assessment for tax matters regarding your joint income connected with your business arrangements?

I've taken on a new accountant starting with the new tax year and she is going to make our tax submissions from now on. I am continuing to record every single transaction for my wife and myself using my existing ancient copy of Sage which predates the 'rent your software' fad so I own it, and she is going to harvest the data and make the submission using suitable software quarterly. She reckons the current recording that I'm doing and have done for year is more than enough to satisfy HMRC. After all she's the one with strings of letters after her name so I hope she's right!
The actual number of transactions is fairly minimal - a few a day on average with bursts of activity when my letting agent does his monthly update on my rental properties, and day to day issues like cleaning and laundry bills for our holiday cottages.

 

[m_c]

As quickbooks have managed to screw up eBay imports, and realising just how much I'm paying for my current subscription, I'm looking at starting afresh with one of the cheaper options, and going back to manual month end entries.

I'm currently weighing up QuickBooks Sole Trader Plus ( £10 a month) or Xero Simple (£7 month).
I'm currently swaying towards Xero, as it's not QuickBooks, but is there any reason I should opt for QuickBooks?

Self-employment income is well below the MTD threshold, so that's not really a consideration for me.

 

[Pigeon_Droppings2]

I'm currently swaying towards Xero

I like xero...but I've no experience of anything else. I only use manual bank statement imports...and then I reconcile month by month which suits my brain.

The auto matching in Xero is pretty good I think. I do my accounts quarterly and don't really have a lot of transactions.

There's a free phone app that can be used with Xero to upload pics of receipts but I don't bother with that as it's not (yet!!) compulsory.

 

[premmington]

FreeAgent is "free" with Natwest business bank accounts.

Have discovered if you open a second business savings account with Natwest which pays interest - you can have a second free/FreeAgent account.

Which you will need if you do rentals and self employment - you will need two MTD software accounts.