Don’t Use a Tax Agent Until You Read This!

An accounting package is a useful tool but believe it or not, it won’t make you a tax Accountant. If you don’t have any bookkeeping background, you may decide you want to use a tax agent to prepare and lodge your tax return.

 Are you thinking of appointing a tax agent to deal with your tax matters? Just read on, you will learn about the pros and cons of tax agency.

Undoubtedly, tax authorities recognize the important role tax agents play in the tax system such as helping local businesses avoid accounting for reverse charge.

Local businesses importing services such as software installation and implementation are required to request their suppliers to appoint a tax agent that will act on their behalf in invoicing the recipient of the service in Zambia.

Of course, if you want to act as a tax agent you must first be registered and issued with a tax agency certificate. All non-resident suppliers who supply service to any taxable Zambian supplier can only appoint a registered supplier as a tax Agent and notify the commissioner-general about the appointment of the tax agent

Where the commissioner accepts the appointment of a tax agent, the tax agent shall handle any of your tax obligations until such time as the commissioner general accepts another tax agent.

This is what you must know before you use any tax agent. You are responsible for all the information on your tax return even if a tax agent completes it for you. You will be responsible for any extra tax if your agent makes a mistake.

I can not recommend any specific Tax agents; just make sure you ask the tax agent about their agency fees and their expertise with the type of tax you need help with before you decide which tax agent to use.

Nitram Management Consultants also act as Tax agents for non-resident suppliers of services whose clients in Zambia do not want to account for reverse charges. You can visit their website to find out more.

A New Approach to New Software

Let’s face it, everyone is looking for New Accounting software, nobody wants to miss out the benefits of new ERP software upgrade or get stack to an old and outdated program. However, this does not diminish the value of having the ‘older’ working software version.

In this topic, we look at the factors you must critically consider before making a decision to upgrade to the new version of any accounting and ERP software.

The software world is an interesting place at the moment. The evolution in the software industry presents a new wave of technologies with new features.

Beyond the old versions, softline recently released version 6.50.85 upgrade described as “the most significant change to pastel evolution features since its launch.”

What is obvious is that a good number of businesses in the southern region of Africa is using the old module or the new pastel software version 6.5.85.

So, as software houses continue to deliver new "breeds" of cutting edge technology options, this is the challenge to all business owners; It is important that before moving from your old software version to the new one, know what software version you need to run your business more effectively and efficiently.

Once this strategy is clear, downgrade or upgrade to the available new software technologies to deliver your vision. These are some of the guidelines to consider when choosing new software version.

Secondly, remember that while it is exiting to have the latest accounting software version on the market, it may not add value to your business because when it comes to accounting programs, there is no “one size fits all.” Don’t waste time and money when you don’t have the analytical skills to use the product effectively.

I have said this and I will keep saying it again and again: “Too many choices bring confusion” It is not important to have new software without understanding the full benefits of using any new software version.

With this in mind, I strongly recommend that you take a new approach to software implementation.

What is the Most Popular Freeware?

Many enthusiasts regard freeware accounting software as their best software, of course favored by the completely lack of cost and free download in addition to lots of other features.

Let’s consider this question received from our reader, “Which is the best freeware accounting software I can use to manage my accounts?” So wrote this keen follower of this website.

Well, have you been plagued with similar eagerness or delight in a ‘freeware heaven’, let alone knowing the most popular freeware accounting software? If so, this article will be of great help to you

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Freeware is a loosely defined category of accounting software. All freeware and other software licence questions are clearly explained in this article. In a nut shell, freeware is commonly used for packages which permit redistribution but not modification.

Most people love getting something for nothing. That is why freeware accounting programs are so popular in the web today. Worried about the reliability? Don’t worry freeware is a valid choice. Freeware accounting software is reliable that’s why I recommend it to you.

There has been much talk about this popular freeware Gnu Cash . It’s undoubtedly the most popular on the web though I have not used it before. If you search for software through search engines like google, you will agree with me that Gnu Cash is the most popular freeware accounting software.

The free edition of Quickbooks is also a very good choice of free software especially if you are starting and I have used it before, that’s why I recommend it to you.

Here is the site where you can find a wide selection of completely free accounting software on the internet.

http://www.freewarefiles.com/ You will find over 15000 freeware downloads which include ratings as well as reviews.

If you found this article helpful, feel free to leave your comment.

The Worst Loss in Business Today

The loss of Business data is one of the most devastating experiences any business can face. At times, this data loss may be unbearable.

For many years, accounting was just a manual process of hand written entries in journals and ledgers until the first “packaged” software -spreadsheet, word processing and database became available. Since then, data accounting systems and software have evolved at an ever accelerating pace and are increasingly used for recording accounting information.

Accounting information systems face various risks and lack of prevention can result in loss of data resources. If a system crush occurs, it can cause a major loss to the company. All or some information can be lost and there is a chance it may never be recovered if there are no measures to prevent data from getting corrupted or options to recover it.

Despite the various risks, electronic storage of accounting information is critical to many companies today.

That is why serious companies take precautions by backing up their files regularly and performing standard maintenance on all computer systems.

Statistics suggest that the loss of accounting information with the new technology can be caused by a variety of exposures: software malfunction 14% and manmade disasters such as computer viruses 7%.The good thing is that very simple security methods can be employed to limit the possibility of such losses.

Truly, Data loss is awkward for any business. If you have ever lost valuable data in an excel sheet or a word document you would understand how hard it is to come to terms with the loss.

In fact, when discussing business, even the gentleness of terms can do little to soften the intense sadness that is felt due to any type loss. It is the worst experience.

If you too lost your accounting data, here are the 10 simple ways how you can prevent data loss

Use Correct Exchange Rates to Avoid Loss!

Exchange rates are something you typically pay attention to when processing foreign currency transactions in your accounting package.

In Zambia today, businesses that have never dealt with any currency other than the ZMK Zambian Kwacha
 must contend in one way or another with exchange rates for Euros, Pounds, Rand and US dollar.

In simple terms, if you want to exchange Zambian currency for that of another’s you’ll need the Zambian Kwacha exchange rates. These exchange rates will show you the relative, or ratio of the ZMK to USD and other currencies.

Only a handful of Accounting packages handle multiple currency transactions correctly. Yet, it is one thing to have software solution with multiple currency support, but fluctuating exchange rates can result in excessive unrealized gain or loss if not processed correctly and Accounting for these adjustments can be more difficult than it first appears.

In this tutorial, I will show you how to use your historical exchange rates correctly and avoid excessive unrealized gain or loss on exchange.

From this screen shot, on 18th May 2010, Smith made advance payment of USD 10, 108.96 for the purchase of equipment and the exchange rate on the Bank of Zambia website was ZMK 5050.

On 8th September 2010, received his equipment with an invoice value of USD 10,108.96 but the exchange rate had fluctuated to ZMK 4980. When posting the purchase in his Accounting package, Smith decided to use the new exchange rate of ZMK 4980 leaving an outstanding balance of ZMK 707,627 on the account. Later, he decided to reverse the transaction at the exchange rate of ZMK 5050.

As at 19th November, this account was showing that Smith had made an overpayment of ZMK 707,651 when in fact not.

As you have seen, the effect of fluctuations in exchange rates is either unrealized profit or loss on exchange.

Now, here is how you can use your historical series of your exchange rates to handle these complexities.

When processing a purchase of any prepaid amount, use the same exchange rate used to make the payment. Smith should have posted the purchase using the exchange rate of ZMK 5050.

Secondly, when reversing any wrong entry, always use the same exchange rate. Just like in the given example, Smith processed a purchase of ZMK 51,055,258 at the rate of ZMK 4980 and then reversed it at the rate of ZMK 5050 resulting in a difference on the account.

Undeniably, accounting for fluctuations in exchange rates is much easier using a software package that maintains a historical series of exchange rates and a daily input of exchange rate for each currency in that way you can change between currencies.

Do We Really Need Software Advice?

If you are a Software genius, getting software advice probably isn’t such a big deal. When asked whether a named ERP software is valuable and sensible, I guess you would do your own evaluation without hesitation. But most software buyers still need outside advice regarding the value of any tailor-made accounting, networking and communication solutions.

In this article, I want to give you the key reason why it is important to seek software advice. Indeed, there are various other good reasons why people look for advice despite these impressive facts you are about to read.

Generally, we all face trade-offs in our purchase decisions. Our income is limited and the ERP software choices available today are numerous. In order to make the right software choices, we have no option but to combine our budget constraint (What software we can afford) and our preferences (What software we would like to have). This is exactly why it is critical that you get right advice.

Every serious investor is looking world-class technology to provide them with tools to make their vision a reality. Unfortunately, intangible things are hard to quantify. It is practically difficult to see the value in a software solution without a clear understanding of the system functionalities. That is why some self service buyers take software advice seriously in order to make informed purchase decisions.

You might be saying, “Well but I live in ‘wired’ world why ask for advice when I can do my own research on Internet?” Truly, as individuals, we all do a lot of research for our personal purchases on the internet comparing product prices and credentials of various software sellers. That is not enough! Michael LeBoeuf wrote in his book Working Smart that, “Jumping around and splashing in water doesn’t mean you are swimming.” Besides, there is no reason to pretend to be a genius.

Interestingly, investigators found that “some people seem to be genetically geared either to make compromises or take more extreme options by selecting sure gains or simply take gabbles.”

To put it simply, the reason is simple. We all need advice in one way or another. It is up to you to decide whether to seek advice or not. If you don’t see any value in advice or your organization does not take any outside advice seriously, I would advise you to give it a try.

The Easiest Way to Process Payroll

Few Accountants have to contend with more speedy demands on their time than Payroll Accountants do. Payroll accounting demands are innumerable. A payroll accountant must take care of calculating earnings of employees, calculation of payroll taxes such as NAPSA, keeping track of employeeleave taken and loans and advances availed as well as fridge benefits like paid vacations and insurance coverage.

Although automated payroll software solutions have become increasingly available and affordable, most small to medium businesses are still glued to processing their payroll manually.

Undoubtedly, Payroll processing is an error prone activity that requires proper tools and utmost accuracy. In this time and age, payroll software has made it easy to deal with the challenges of payroll accounting more efficiently and accurately.

A perfect payroll system can streamline your payroll functions, improve accuracy and make the entire payroll process enjoyable.

This is how payroll software can speed up your payroll processing

Submitting returns electronically

Every payroll Accountant is required to calculate NAPSA contributions and other payroll taxes in conformity with NAPSA regulations and subsequently file returns. A good payroll package can help you automate this activity for greater efficiency and accuracy. You can easily generate electronic monthly return from your Payroll system and submit to NAPSA by email or other electronic media.

Depositing Salaries Direct in Bank Accounts

Some payroll software systems allow users to print checks and pay employees through direct deposit. This is how it works; the software allows you to define unlimited number of different bank accounts for each employee and will then receive their pay via direct deposit of wages into their personal bank accounts.

Reporting

Most payroll systems provide access to a number of reports which can be viewed in various standard formats such as PDF and MS Word as well as the ability to export data into other formats as well as email reports.

There is a good number of payroll Accounting Companies in Zambia offering payroll accounting software solutions as well as payroll services among them is palmsoft payroll and Dove payroll but, here is what you must know when choosing payroll software.