Earnings Tracker (www.dixondevelopment.co.uk/earningstracker.htm) is a very basic, free, bookkeeping application that can be used online (web-based / cloud) or downloaded and installed. In fact, it’s so basic that you could even refer to it as a financial calculator on steroids ! It is software that is well and truly aimed at tiny limited companies that have only one or two employees, for example IT contractors.
As with the KashFlow online accounting application, Earnings Tracker was set up in 2005, again in response to a requirement for an accounting/bookkeeping tool to fit a particular need. Unlike KashFlow though, Earnings Tracker is still very much a niche product with only a few hundred, rather than a few thousand, users. That’s not to put the product down though – it has a place in the market and it serves that market very well.
As mentioned above, Earnings Tracker is designed for use by tiny limited companies and as such its feature set has been designed with those types of company in mind. If you’re looking for a fully featured accounting application that lets you keep track of stock and has a profit and loss account, etc, this is not the accounting application for you. If, on the other hand, you’re interested in knowing the size of dividends you can take, or how much corporation tax you owe, Earnings Tracker might be the right choice for you.
Earnings Tracker tends to not use traditional accounting terminology, but instead uses terms such as ‘money coming in’ and ‘money going out’ when adding financial data.
On the main ‘Add Month’ screen, shown above, you can add up to eight invoices per month, plus up to six ‘other revenue’ amounts, which would be things such as Google AdSense revenue or any other revenue for which you have not raised an invoice. You can record the total salary figures (including the amount of tax and NI paid) for the month, plus items such as accountancy fees, dividend payments, and other expenses. If you’re an IT contractor, you may well find that the data you have to add, and the resulting information that is churned out, is right up your street.
Setting Default Data
To speed things up slightly while you’re using the software, you can add some default data, which are values that remain fairly constant from one month to the next, for example, the salary that you draw from the company, your accountancy fees, tax rates, and so on.
Viewing the Main Financial Spreadsheet
When you add a new month to the software, it is added to a financial spreadsheet that contains one row per month, and which also spans years. This is useful for being able to compare figures for different years.
Recording Dividend Payments
If you’re an IT contractor you will almost certainly make dividend payments to yourself and perhaps one or two other shareholders, unless of course you are caught by the awful IR35, in which case you will have to take all of your company’s revenue (within reason) as salary.
Earnings Tracker calculates the size of dividends that can be paid to shareholders based on the revenue, salary and expenses figures you enter when adding a new month to the software, it then lets you record dividends and create dividend tax vouchers.
As dividends can be paid out of retained earnings held in the company ie profit that has been built up over the years, and Earnings Tracker works across multiple years, you can easily see at any stage what funds are available in the company for dividend payments.
Earnings Tracker lets you generate a range of reports, for example, a list of invoices, expenses, dividends, and so on. These can then be exported in .csv format so that they can be imported into a spreadsheet package such as Microsoft Windows.
Here’s the really good bit – Earnings Tracker is completely free – just go to the website (see above for address), register, and away you go. You can either use the online version or, if you prefer, download the software and install it on a web server (this requires a bit of effort, but it’s not too difficult).
If you are feeling really adventurous, you can even edit the source code to create your own customised version of the software. You need to be comfortable with PHP and MySQL in order to do this though. But, if you mess it up, you can just download the software again, so there’s nothing to lose really.
Remember, this is free software, so don’t expect huge amounts of technical support. There is an email address though, and if you contact the support department you will get a response.
Earnings Tracker is aimed at a very specific market – one person limited companies. If this isn’t you, you’ll probably be wasting your time with this software. If you are an IT contractor though, it might be worth setting up an account because, if nothing else, you can use the software as a dividend, corporation tax, and VAT (Flat Rate Scheme only) calculator.
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