How To Produce Taxi Driver Accounts Plus TAXATION STATEMENTS In Less Than 2 Hours

August 11, 2023

Since nearly all taxi drivers, but definitely not all, have little accounting or bookkeeping knowledge the low the level of expertise required the more desirable such an accounts package will 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 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 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 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 which includes a check up on data entry accuracy before being transferred to the taxi driver accounts sheet.

Cash and bank spreadsheets are not provided as not necessary by taxi drivers as taxi drivers need not produce a balance sheet.

Along with entering purchases on the taxi expense sheet the only other entries required from the taxi driver to produce a set of taxi driver accounts is to also enter vehicle and any assets purchased on the fixed asset spreadsheet. The fixed asset spreadsheet having already 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 which includes the taxi capital allowances from the fixed asset schedule.

A unique feature is that both mileages covered and vehicle running costs could be entered. The tax rules in the united kingdom state that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or the other and only by the end of the financial year when it becomes clear which is the most tax efficient.

This taxi accounts package compares both the mileage cost and the automobile running cost and automatically selects probably the most expensive. This ensures the highest costs are selected in to the calculation of the net taxable profits and highest cost equals lowest tax bill.

Also in Rosyth taxis accounts file can be an excel spreadsheet designed with 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 needed leaving the taxi driver only to click print to create the self assessment tax return.

Finally having calculated the net taxable profit for the year the accounting package also offers a tax calculator that calculates the number 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 to 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 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 in a similar way in which taxi drivers move people from one location to another. And due to the similarity running a business activity then this taxi accounting package will be equally ideal for couriers and van drivers.

Leave a Reply

Your email address will not be published. Required fields are marked *