Value Added Tax (VAT) is a tax that is applicable to most company transactions concerning the transfer or goods or services. Once your business turnover reaches £67,000 (as of June 09 – this figure is liable to change annually) you are legally required to pay VAT to HM Revenue & Customs. A business must pay VAT on its purchases and charge VAT on its sales. A VAT registered business receiving more tax from sales than it pays has to reimburse the difference to HM Revenue and Customs. If more VAT has been paid out than the company has charged for on its sales, the Revenue is required to refund the difference.

Certain types of goods and services are exempt from VAT. Insurance, loans, education and training often do not require VAT to be paid. If your business supplies only goods and services that are exempt, then you do not have to register, fill in VAT returns or make payments. However, you cannot claim the VAT back on your purchases.

Any company dealing with VAT would be wise to use Sage Line 50 to efficiently manage their incoming and outgoing VAT. A SkillsTrain distance-learning course would be an ideal choice for people of all levels to gain a thorough knowledge of bookkeeping and managing VAT.

Cashbooks are simple bookkeeping tools used to record relatively simple financial date concerning cash receipts and payments. They are the principal source of information for your transactions and comprise part of your financial ledger so are a vital tool for any efficient accounting system.

Cashbooks are increasingly transferring from the physical to software records, such as those found in Sage Line 50. It provides a straightforward way of staying on top of your basic account information. Detailed information and analysis of your financial data is analysed elsewhere, as a cashbook is designed specifically so that anyone can turn to it for information without expertise in Bookkeeping. Using Sage Line 50 you can print out a cashbook for people who need access to the information while keeping more specific information on the computer.

The design of the spreadsheets in a cashbook is a simple set of columns with titles. Generally a cashbook contains simple information such as the date of the transaction, the amount, source of the cash or the recipient of the cash out, and the current account balance. The Sage software allows you to provide more detailed financial information if you choose to.