Streets Annual Accounting Software Update 2015

Transcription

1 Streets Annual Accounting Software Update 2015 Tuesday 29 th September Holiday Inn, Cambridge Thursday 1 st October 2015 The Showroom, Lincoln Follow us on Connect with us on LinkedIn

2 Introduction James Pinchbeck Marketing Partner

3 Introduction An update on popular accounting software Sarah Leonard, Accounting Software Specialist at Streets Chartered Accountants Relieving the burden and cutting the red tape Lee Maughan, Director Robin Lee, Partner at Streets Chartered Accountants Getting the best from your financial reporting Sarah Leonard, Accounting Software Specialist Ched Howard, Accounts Senior at Streets Chartered Accountants

4 An update on popular accounting software Sarah Leonard ACA Senior Manager Accounting Software Specialist

5 What s new in Accounting Software?

6 Cloud Software

7 What is the Cloud?

8 Cloud Accounting Software QuickBooks Approved Partner Xero Certified Advisor

9 Mobility: Advantages of the Cloud Enter your figure on the go See your figures on the go Check customer balances on the go invoices from tablet/phone

10 Advantages of the Cloud Create a virtual office: Split the workload without having to share the same laptop Split the workload with us

11 Advantages of the Cloud Make use of new technology: Works on Macs Bankfeeds Do you re-write the bank statements? - use bank feeds to speed up this process Scan your documents by taking photos on your phone/ipad Record expense claims remotely

12 Advantages of the Cloud Make use of new technology: Add on and apps

13 Advantages of the Cloud A fresh reporting approach: Weekly reporting ideal for retail organisations Easy departmental (tracking) reporting

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16 Dashboards

17 User Centric Screens

18 Record Costs or Stock Record Due Dates

19 Post Memos Attach Documents

20 Easy Bespoke Reporting

21 Freephone support In product support

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23 ccounting-software/xero/how-can-xerohelp-you-take-a-test-drive

24 Bespoke due dates Auto rules on bank reconciliation Repeat auto billing Drillable reporting

25 Dash-boards

26 Expenses On the Go & Touch App

27 Documents to Xero

28 Update Notification

29 Help & Support

30 Desktop Fixed location Remote connection - VPN Backups

31 Sage 50 v Sage Drive (Hybrid) Your data is stored on your server.

32 A copy of the data is stored on the cloud (Sage Drive)

33 The data can be viewed on external devices Transactions can be posted from external devices

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35 Mobility: Why Sage Drive? I love Sage so much I want to take my Sage home with me Access Sage from home/second location No technical knowledge required to set up - just an internet connection

36 Mobility apps: Why Sage Drive? Salesmen access on tablets to raise invoices, check stock, check customer balances Check key balances from your phone - including o/s customer balances

37 Sage Mobile Sales - for Tablets player_embedded&v=0rcxkqvq_zm

38 Sage Tracker - for Smart Phones qe5ikdi&feature=player_embedded

39 Why Sage Drive? Create the virtual office: I hate doing my accounts - I wish I could get someone else to do it Split the workload without having to share the same laptop Bookkeeper offsite access Split the workload with us

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41 New Sage 50 - v2016 Version 2015 New UI (layout) Automatic Backups Windows Keys Sage Drive

42 New Sage 50 - v2016 Version 2016 Sage Drive Removing some pain Adding some help

43 The bit you won t like to start with

44 Another New User Interface

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46 Now for the bits you will like

47 Sage Pay Get paid faster with Invoice Payments Add a Pay Now button to invoices so your customers will be able to pay them instantly, easily and securely Accept card payments over the phone from directly within Sage 50 Accounts No monthly charge simply pay a flat fee of 2.5% for the value of each payment

48 Improved Error Correction Edit Journals Edit journals

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51 Improved Error Correction Un-allocate Transactions Un-allocate credits and payments

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53 Improved Correction Control See what s been edited, by who and when

54 Surfacing Information Easier to analyse data New columns and fields

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59 Surfacing Information Drill down on aged debtors and creditors

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61 Bank Feeds Bank Feeds powered by Yodlee* Version 2016 onwards Sage Cover Extra /Subscription Makes reconciling bank accounts simple and error free.

62 Sage Accounts Bank Feeds powered by Draycir Available to subscription / SCV2 customers only (V22)

63 Integration from your online bank into Sage Download transactions from your bank into Sage Automated matching of transactions for reconciliation Create new transactions as you go

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65 Bank Feeds Match payments and receipts quickly and easily Spend less time on time-consuming data entry Real-time view of your cash position at a glance

66 Subscription vs One-off vs Cover vs Upgrades

67 Short Story - whenever considering Sage software, upgrades or cover contact us for a quote

68 Now the details

69 One off Cover Cover Extra Subscription Subscription with cover Own or rent Service packs & fixes Own - - Rent Rent FOC - - FOC FOC Updates Chargeable Chargeable Included FOC FOC Sage Drive one free user Free for first 12 months - then - Free if you have Sage Cover Extra FOC FOC

70 Advantages of Subscription Software always up to date No up front cost Includes Sage Drive for first user & accountant FOC

71 Advantages of Subscription Offer prices A chance for a review Pay for what you need now Remove historical costs

72 Streets Discounts Streets Client Discount - One off prices Streets Client Discount - Subscription For a quote - sleonard@streetsweb.co.uk sage@streetsweb.co.uk

73 Relieving the burden and cutting the red tape Lee Maughan BSc (Hons), FCA Director Robin Lee BSc FCA CTA Partner

74 A topical update What s new in Accountancy?

75 VAT MOSS VAT Mini One Stop Shop (effective 1 Jan 2015) Digital services to non-business customers in other EU countries What are digital services? Outside the scope of MOSS How VAT MOSS works in Sage search MOSS

76 VAT on Discounts All change for VAT on prompt payment discounts. Previous rules permitted a discounted rate to be adopted on invoices, regardless of whether the discount was actually taken up. so, if a prompt payment discount ('PPD') was freely available, under the old rules, the VAT was calculated as follows;

77 VAT on Discounts Net Invoice Value 1, VAT at 20% Total 1, PPD available; 5% Net Invoice Value 1, VAT at 20% Total 1, Thereafter, it was irrelevant whether the discount was actually taken up, and the supplier would pay 190 to HMRC and the customer could claim 190.

78 VAT on Discounts From 1st April a whole new regime replaces this system. Two options

79 Option One VAT on Discounts The original invoice shows full values and, if the PPD is taken up, credit-notes are subsequently issued (plus VAT) for the PPD values. Invoice Goods 1000 VAT 200 Total 1200 & Credit Note Discount Taken 50 VAT 10 Total 60

80 Option Two VAT on Discounts The VAT elements are adjusted by both supplier and customer without issuing credit-notes: Invoice Goods 1,000 VAT 190 Total 1,190 A discount of 5% of the full price applies if payment is made within 30 days of the invoice date. No credit note will be issued. Following payment you must ensure you have only recovered the VAT actually paid.

81 VAT on Discounts Option Two The original invoice must contain full information about the available PPD, including the following as a base requirement; the terms of the PPD (PPD terms must include, but need not be limited to, the time by which the discounted price must be made). a statement that the customer can only recover as input tax the VAT paid to the supplier.

82 VAT on Discounts Additionally it may be good practice to include: the discounted price the VAT on the discounted price the total amount due if the PPD is taken up. It is recommended by HMRC that the following words are always included in all PPD invoices being issued post April 2015 A discount of X% of the full price applies if payment is made within Y days of the invoice date. No credit note will be issued. Following payment you must ensure you have only recovered the VAT actually paid.

83 VAT on Discounts Whichever process is adopted, it is vital that there is a good audit trail for both supplier and customer to provide support for the treatment adopted HMRC will not want to enter into discussions between taxpayers at each end of a transaction concerning whether or not discounts were actually taken. They will rely instead on a taxpayer's systems and audit trail to prove entitlement if they are looking to reduce their output-tax liability.

84 VAT FAQs for Small Businesses Flat rate scheme Cash accounting scheme Penalties

85 Auto Enrolment Where are we up to? Are you in the Test tranche? How to manage process on Sage?

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87 AE - Watch Out! Are you in the Test Tranche? 10% of the 0-30ee s staging in June months to register non-compliance notice Oct/Nov 2015

88 Sage Pension Module Update Automate the Pension review process Automate running the pension scheme

89 Emergency Budget Update Highlights include New IHT for main residences Future cut in corporation tax AIA set at 200,000 Employment allowance increase to 3,000 Living wage Non-dom status Pensions tax relief

90 Emergency Budget Update Corporation tax falling from 20% to: 19% in 2017 and 18% by 2020 Annual Investment Allowance will not fall to 25,000 but be set at 200,000 both this year and every year

91 Emergency Budget Update Employment Allowance increasing by 50% to 3,000 from next year Abolishment of Dividend Tax Credit Replaced by a new Dividend Tax Allowance of 5,000 a year

92 Emergency Budget Update National Living Wage for workers over 25 of 7.20 Personal allowance from 10,600 to 11,000 The higher rate tax threshold, 40%, also climbs from 42,385 to 43,000

93 Emergency Budget Update Property related changes: mortgage interest relief for landlords reform of the wear and tear allowance cumulative stamp duty for residential property

94 Taxation of dividends No more dividend tax credit Dividend allowance of 5,000 In excess of 5,000 taxed at: 7.5% basic rate 32.5% higher rate 38.1% additional rate

95 An example: Taxation of dividends 2015/ /17 Salary 20,000 20,000 Dividend received 50,000 50,000 Dividend tax credit 5,556-75,556 70,000 Personal allowance (10,600) (11,000) Taxable income 64,956 59,000

96 Taxation of dividends 2015/ /17 Taxable income 64,956 59,000 Tax at 0% - 5,000 dividend allowance - - Tax at 7.5% - 1,350 Tax at 10% 2,239 - Tax at 20% 1,880 1,800 Tax at 32.5% 10,780 10,180 Less: tax credit (5,556) - Tax liability 9,343 11,925

97 Taxation of dividends Questions to consider: Is incorporation less attractive? What might happen to Class 4 NIC when Class 2 contributions are abolished? dividend-allowance-factsheet/dividendallowance-factsheet

98 HMRC Enquiries HMRC Campaigns Electronic information Volume of tax enquiries Tax enquiry fee protection: 350 per annum (excl. VAT) for a company with turnover of 1.5million

99 Online filing Online digital accounts are coming Various exceptions: Savings allowance Dividend allowance Certain BIK Will the filing deadline change? Paying tax as you go along

100 FRS 102 A new balance sheet Consolidated Statement of Financial Position FRS 102 mandatory for accounting periods beginning on or after 1 January 2015

101 FRS Assets Goodwill - 5 years life or less Investment Properties: Revalued annually to fair value Movements taken to profit or loss Other assets held at valuation

102 FRS Stock Long term contracts become 'construction contracts' Contract costs expensed as incurred Percentage completion used to recognise the corresponding revenue Cost of stocks must be measured using the FIFO or weighted average method

103 FRS 102 Financial Instruments Recognition and disclosure of financial instruments is a key area of change Unlikely that a set of accounts under FRS 102 will not contain financial instruments.

104 FRS 102 Cashflow Statement No exemption from preparing a cash flow statement under FRS 102, although reduced disclosures do exist for qualifying entities.

105 FRS 102 Leases Classification of leases as finance or operating still relies on the substance over form Consider lease incentives

106 FRS 102 Provisions Deferred tax must be recognised on revalued assets Consider impact in groups on dividends

107 FRS 102 Holiday Pay Accruals An accrual for holiday pay is specifically required Consider holiday year end

108 FRS 102 Tax Implications Change of accounting basis: Goodwill amortisation Loans and financial instruments Lease incentives Impact on brought forward reserves

109 Relieving the burden and cutting the red tape Lee Maughan BSc (Hons), FCA Director Robin Lee BSc FCA CTA Partner

110 BREAK

111 Getting the best from your financial reporting Sarah Leonard ACA Accounting Software Specialist Ched Howard Accounts Senior

112 What Should I be Doing at Month End?

113 Getting Ready for Month End Level One Post all sales invoices Post all purchase invoices Bank reconciliation Credit card reconciliation Run VAT return

114 Getting Ready for Month End Level Two Review sales ledger Review purchase ledger Post wages journals Post stock journals Post (estimated) depreciation journals

115 Getting Ready for Month End Level Three

116 Getting Ready for Month End Level Three Consider prepayments Consider accruals Consider accrued income Consider deferred income

117 Getting Ready for Month End Level Four Review the Balance Sheet first: Fixed Assets Stock Trade Debtors Other Debtors Bank

118 Getting Ready for Month End Level Four

119 Getting Ready for Month End Level Four Trade Creditors Other Creditors VAT Wages PAYE/ NIC & CIS Capital & Reserves

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121 Getting Ready for Month End Level Five Review P&L Consider timing/accruals Correct coding, consistency Miscellaneous/suspense

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123 Getting Ready for Month End The game changer Level Six Moving on from compliance The next level - what matters to your business?

124 Getting Ready for Month End Budgeting? Level Six

125 Budgets To compare results to Restraints Targets Fixed

126 Getting Ready for Month End Forecasting? Level Six

127 Forecasts Predictions Updated

128 Forecasts Q1 Actual k Q2 Actual k Q3 Actual k Q4 Forecast k Year - Forecast k Sales Cost of Sales Gross Profit Overheads Net Profit

129 Forecasts & Budgets Q1 3 Actual k Q4 Forecast k Year - Forecast k Year Budget k Year Variance k Sales Cost of Sales Gross Profit Overheads Net Profit

130 Getting Ready for Month End Level Six Profitability reporting Cost centres Job costing Tracking

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134 Getting Ready for Month End Level Six Presentation - who is seeing the numbers

135 Getting Ready for Month End Level Six Interpretation - what can be learnt from the numbers?

136 Getting Ready for Month End Level Six

137 Presentation Manual Reports within the software Reports linked to the software

138 Examples of Reporting Off the shelf Edit Bespoke Send to Excel Excel integrated

139 Sage Integrated

140 Summary Get the bookkeeping tidy Get the accounts prepared on an accruals basis Report for profitability Report in the right way Understand what the reports show you

141 Want Some Help Exploit our experience Feedback form Chat over lunch Call/ us Get your accounts working for you

142 System Review Time for a fresh start? Time for a review? House that Jack Built Staff Systems

143 New coding set up Change of personnel - unnecessary steps Change of technology Understanding the numbers Do you need some help Do you get what you need

144 Training Accounting/bookkeeping Reporting Concept understanding

145 Onsite Sage Drive/Cloud One off Monthly Support

146 Getting the best from your financial reporting Sarah Leonard ACA Accounting Software Specialist Ched Howard Accounts Senior

147 Streets Annual Accounting Software Update 2015 Tuesday 29 th September Holiday Inn, Cambridge Thursday 1 st October 2015 The Showroom, Lincoln Follow us on Connect with us on LinkedIn