Accounts production software

Jenbo

What is accounts production software and how is it used? Does software like xero etc not give you financial reports or the info to produce them?

hal978

Accounts Production Software produce accounts for statutory purposes (Companies Act/IFRS) and filing with Companies House (Abbreviated/Abridged/Filleted). The software also produces iXBRL tagging for the accounts and computations that are required when filing the CT600 (Company Tax Return).

Most bookkeeping software can't do this, e.g. Sage 50, Xero, etc. The reports they produce are not in the correct format.

Jenbo

So is it a requirement to use this sort of software for all Ltd company accounts?

reader

I believe so, I don't think accountants can file through the HMRC website

Jenbo

So I would need 2 types of software then, does the bookkeeping software link to the accounts production software?

hal978

Most bookkeeping software should be compatible with accounts production software of the same developer, for example, Sage 50 and SAPA (Sage Accounts Production Advanced), VT Transaction+ with VT Final Accounts, etc.

With Accounts production software, you would normally enter the trial balance (or it can be imported) and other information needed to produce the accounts.

reader

Jenbo said:

So I would need 2 types of software then, does the bookkeeping software link to the accounts production software?

Yes, e.g. Free Agent/Xero (bookkeeping/VAT) and Tax Filer (Accts, CT, SATR) and Moneysoft (Payroll).

Jenbo

Thank you. Do you know if tax filer works with xero?

Jenbo

I thought xero has a payroll function

reader

Xero does have payroll: https://www.xero.com/uk/features-and-tools/accounting-software/payroll/

Money soft is more applicable to any clients using excel spreadsheets rather than xero and free agent.

You can import a trial balance from xero to tax filer for self assessment for sole traders: https://help.taxfiler.co.uk/#importing_accounts_data_from_other_packages

I don't think this works for limited companies so you would need to type the trial balance in manually.

However I believe there is an import function from quickbooks to tax filer: http://taxfiler.co.uk/landing/aw1603

So if you want to save valuable minutes go with quickbooks.

Jenbo

Thank you for your help it's appreciated. You mentioned spreadsheets, do you know what the bridging software is or where to get it from for when making tax digital come in?

reader

You would get it from the software providers, e.g. xero, free agent, kash flow, quick books, iris, etc

It will probably be available around this time next year

Jenbo

Sorry for all the questions.
What happens if you use spreadsheets, how do you use accounts production. Is it a case if manually entering the figures, also for a sole trader do you have to use accounts production if not filed on companies house?

reader

Jenbo said:

Sorry for all the questions.

What happens if you use spreadsheets, how do you use accounts production. Is it a case if manually entering the figures, also for a sole trader do you have to use accounts production if not filed on companies house?

Yes, you would manually type the trial balance from the bookkeeping software into the accounts software.

You don't need accounts for sole trader, only tax return.

Jenbo

Oh ok. I thought you should still prepare accounts gor sole traders, as the AAT module teaches.

reader

You can prepare accounts however you wouldn't be able to submit them.

You would only be able to submit the tax return (which asks for all the income and expenses)

Jenbo

Is it possible for someone to do bookkeeping and file accounts and have another accountant to file the taxes? Or would this not be possible with how the software works. I need to somehow gain experience in taxation and I am trying to find another mip who I could shadow or something so wondered if I could just do bookkeeping and accounts.

reader

You could do the bookkeeping, VAT and payroll using Xero, or excel and money soft payroll.

However, because of how the software works, someone else would need to do the accounts and tax together.

If you wanted, you could resign from the AAT and then you could do the accounts and tax return work. Once you have built up 1 year of doing the accounts and tax return work then reapply for AAT and the practising licence.

Short term pain for long term gain. It is not really short term pain because most clients haven't heard of AAT or if they have heard of AAT they will know that it is a lower qualification compared with ACCA.

Jenbo

Hmm yes it is a pain. I would be worried that I wouldn't know everything that I needed to as people say it is a difficult subject? Is it really that difficult?

Jenbo

I was even going to study the ATT qualification but AAT said that still wouldn't help

reader

Doing ATT would help you when you are talking with clients and doing the work.

Doing ATT won't help with you getting an AAT licence.

Consequently you can either:
1) Give the accounts and tax work to someone else.
2) Resign from the AAT, study the ATT and so the accounts and tax work, then rejoin the AAT later on.
3) Become an employee of a chartered firm of accountants and gain the experience to apply for a licence.

reader

Jenbo said:

Hmm yes it is a pain. Is it really that difficult?

Going by the number of questions you have asked, you are making it look difficult.

Jenbo

Lol sorry, I guess I over think everything and worry. But that's only because I want to do my best and make sure I know what I need to.