Preparing Tax Software In Canada.

Fancy, Brand-Name and #1 Best-Selling Tax Software Programs Have Fancy Price Tags

If you have always wanted to file your own tax returns but are not sure which tax software programs to use, this article is for you. To file your own income tax returns, you need to use income tax software programs. I will review a few Canadian tax software programs and let you decide the best one for you. I will only discuss value tax software programs and will not discuss any fancy, brand name and #1 best-selling programs. Fancy, brand-name and #1 best-selling programs have fancy price tags, and I do not use or recommend them.

Types of Tax Software Programs

Tax Preparation Software comes in two different versions. One version is Windows version and the other version is Web application or online version. An Online version means you don't have to download and install any applications on your computer, and you do everything online. Your tax information is saved on the web site's server. Windows version means you download and install tax preparation software on your computer and all your information is kept on your computer. I do not use or recommend online version tax software, and I will discuss only Windows version tax preparation software here.

How Canada Revenue Agency Receives Your Return

Two ways. One is the traditional way. You print off a copy of your return and mail it to CRA. The other is via online. You transmit your tax return to CRA via online. This online filing process is called NETFILE. NETFILE allows you to file only your own tax return. You cannot transmit tax returns on behalf of others. Also, you need an access code to use NETFILE. To learn more about NETFILE and access code, click here. http://www.netfile.gc.ca/about-e.html Both Windows version and online version tax preparation software offer options to print off your tax return (and mail to CRA) or to transmit online using NETFILE. In order to be NETFILE eligible, a tax software program has to be NETFILE certified by CRA. To learn more about NETFILE-certified tax preparation software, follow this link - http://www.netfile.gc.ca/software-e.html. The tax preparation software programs I am discussing here (and most of the tax preparation software programs) are NETFILE certified by CRA.

New Limit of 20 Returns

CRA has announced that starting 2007, there will be a limit of 20 returns (paper or electronic) with each copy of NETFILE-certified software. Before 2007, you were able to produce unlimited numbers of returns with some of these value tax preparation software programs (such as GenuTax). To know more about this newly imposed limit, follow this link - http://www.netfile.gc.ca/software-e.html.

Canada Tax Software - A Dawn Journal's Top Picks

After researching dozens of tax software programs, I have picked these tax software programs for this year. I am keeping it to a minimum so you don't get inundated with too much information. Let's begin.

TaxFreeway

* TaxFreeway is the only software allows user to use Interview and Form mode ssimultaneously. This gives user the maximum flexibility and helps user utilize the full power of software.

* Tax forms and slips are identical to actual CRA slips and forms.

* Both Windows version and MacVersions are available.

* It's got RRSP planner, carry forward feature, spousal return integration and tax tips on demand.

* Price: $9.95

* Website: taxfreeway.ca

MyTaxexpress

* MyTaxexpress allows to share tax forms/slips in coupled return. Spouse can prepare their returns together as a coupled return to share tax data in the beginning or in the middle of preparation.

* It prints on CRA official forms for mail filing.

* View tax return summary page.

* Price: $6.99 (1 return) and $13.99 ( 1o returns)

* Website: mytaxexpress.com

GenuTax

* Multiyear tax software program. Buy only once and future annual updates are free.

* Price: $34.99

* Website: genutax.ca

Studiotax

* The only free tax software. yes, you heard it right. It is free. However, if you would like to make a contribution, Feel free to do so and Studiotax appreciates it.

* Price: Free

* Website: studiotax.com

Quick Fact

* Deadline for 2006 tax returns: Midnight, April 30, 2008

* Penalty for late filing: 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

* EFILE : Don't mix up EFILE with NETFILE. EFILE is a service that lets authorized and professional service providers send individual income tax return information to CRA by Internet. Tax professional cannot use NETFILE. They must use EFILE. Therefore, when you submit your own tax return = you use NETFILE and when tax professionals submits your tax return = they use EFILE.

Made Accounting More Simple Now!

Proper accounting is a must for any emerging business. Following a good accounting practice make the overall management of the business very easy. Accounting is based on certain principles. These rigid rules make accounts consistent for all transactions involved. There are five major books of accounts. They are :

1. Cash Book - Records all cash related transactions for a specified period.
2. Bank Book - Records all bank related transactions for a specified period.
3. Journal Book - Records all transactions, which are not cash or bank related.
4. Purchase Book - All purchase related transactions are recorded here.
5. Sales Book - All sales related transactions are recorded here.

Based on these books, a Trial Balance is prepared which shows the accuracy of accounting transactions involved. A Trial Balance has got two sides, Debit and Credit side. If sum total of Debit is tallied with the sum total of Credit side, then it shows that all transactions are recorded properly. These two sides are tallied only when the double entry concept is followed. Double entry concept stipulates that for every Debit amount, there must be a Credit amount.

In modern day business, Accounting software is used to record these transactions. These are commonly known as Accounting Packages. These Accounting Packages are built on the Accounting principles. These accounting packages make the whole accounting process very simple and integrated. One or more persons can work at a time. A data entry operator may be entering the data and a higher authority can approve it. Thus, the management can analyze the whole accounting process with ease.

Use of software in Accounting Will Save Much on Everything

Complete financial accounting course or tutorial covers a range of following topics. It is being evaluated that how computers have affected traditional accounting methods and practices.

• Financial Accounting with Double Entry Bookkeeping
• Principles of Accounting
• Basic Book of Accounting - Journal
• Accounting Ledger
• Accounting Sub Journals - Cash Cook
• Subsidiary Accounting Books
• Accounting Verification by Trial Balance
• Banking Transactions Bank Reconciliation Statement
• Depreciation
• Rectification Of Accounting Errors
• Balance Sheet and Profit and Loss Account
• Single Entry Bookkeeping Accounting System
• Non Profit Organization Accounting
• Capital and Revenue
• Reserves and Provisions

In a very short span of time, computer has grown from a scientific curiosity to an indispensable tool of modem society. There is hardly any scientific/technical or business activity which is not in one way or the other, affected by modern data processing techniques.

The human mind can handle only a limited number of things at a time. The digital computer, on the other hand, can be programmed to compare, measure, calculate and evaluate thousands of readings in an extremely short period of time.

The computer industry has become the fastest growing industry these days. The sale of mainframe computers is increasing day by day. The computer industry has been further pushed up by the introduction of mini computer and micro computers which are small, cheap, reliable and very light. These are being routinely used for process control, production testing, scientific instrument recording, in store check out systems, in automobile test and evaluating systems, and medical monitoring etc.

Computers are now being used extensively in office administration to perform the routine clerical work. Today, most large and medium sized organizations are almost totally dependent on their computers. Routine uses of computers are given below:

(i) Accounting, Billing, Inventory Control Software with MIS, CRM

Computers are extensively used in accounting and there are multitude of computer software for Accounting, MIS, CRM. HiTech Financial Accounting is one such software which has been customized for users in many segments in business and services.

(ii) Payroll and personnel records.

Payroll accounting was the first commercial area to become widely computerized. The calculation of wages or salaries involves a number of variables which relate to the personal details of each employee, such as gross pay or rate for the job, individual deductions, tax liabilities of the employees and so on. These facts can be retained in the computers and processed every month of produce pay slips for the employees.

(iii) Stock control

The computer helps to exercise the type of stock control needed by the organization. It upto dates the sales and purchases records, determines optimum re-order levels for different items and prints out the stock lists when desired. The system can be so designed that it triggers orders when stock level reaches order point for various material items; tests those item which are slow moving or gives list for over stock items.

(iv) Sale accounts records

Programming can be done for any sales accounting system. The computer will pin point defaulting debtors, determine the right limit for credit for each debtor and maintain stores ledger.

(v) Costing and budgetary control

Costing and budgetary control can be affected through the computer, the computer will point out the variations from the planned performance.

(v) Production control

The computer also helps greatly in production planning and control. It is possible that scheduling of the work may become necessary due to break downs etc. A new critical path may have to be worked out. A critical path is the shortest path to be followed in production to achieve production objectives. The computer helps the management lay down this new critical path. Advantages and disadvantages of a computer

A computer is surely advantageous because of the high speed of operation and greater accuracy it provides, savings effected by better managerial control, savings in labor because it is fully automatic and finally because of its flexibility in use. However, there is a considerable capital outlay with difficulty of obtaining experienced analysts and programmers, break down and maintenance troubles and finally fear of obsolescence due to rapid development of computers.

Type of other applications in relation to accounting system

WORD PROCESSOR

It is a software package to help in text processing. Words are processed. Processing includes insertion, deletion changing, moving words, paragraphs etc. Word processing is the preparation of type scripts, using computing facilities for the storage and manipulation of text. For example, word processor has ability to merge name and addresses with standard text so as to give impression that the latter is personalized even in case of circular letter.

HiTech Financial Accounting has got features so that you can export its reports to Microsoft Word, a word processing and Mail Merge Program. You can also write letters to various parties and store the details in the program database.

DATA BASE

It is simple collections of information (data) on a particular subject. Data base file allows you to manipulate the data in desired form. So, data base allows us to work on facts and figures to store and manipulate that data in any desired way. For example, from the same basic information trial balance is prepared; trading and profit and loss account may be prepared; list of debtors and creditors may be prepared; purchases and sales forecast may be made and so on. So, an efficient data-base management is needed to provide flexibility in uses of information. HiTech Financial Accounting uses MS Access and MS SQL server databases for robust database connectivity.

SPREAD SHEET

It is one of the software programs which have increased the utility of computer for accounting purposes. Spread sheet programs help you to draw vertical as well as horizontal columns on a large sized paper. Each .column's length and breadth can be adjusted according to suitability. Even when columns are once drawn subsequently these can be altered, increased or decreased additional columns can be inserted, existing columns can be deleted. It is very useful for businessmen and professionals. It enables us to study multidimensional data at one sheet and helps in arriving at logical decisions. For example, if profit and loss account has been prepared for the year 1989 and you want a comparison with 1987 figures and 1990 forecast then spread sheet shall enable you to provide two additional columns on each side for inserting 1987 actual figures and 1990 forecast estimates.