VT Cash Book

Go to https://www.vtsoftware.co.uk/ and click on the Download VT Software button. A pop-up icon for the installation file appears in the corner of your screen. Click on it to start the installation process.

If you do not see the pop-up, go to the Downloads folder on your PC and click on the file from there.

You only need to enter a license key if you need to use the Making Tax Digital (for VAT or Income Tax) features in VT Cash Book.

Note: The license key must be entered in the full bookkeeping program, VT Transaction+. However, you do not need to use VT Transaction+ thereafter if you use VT Cash Book.

1.Open VT Transaction+ by clicking on the VT Cash Book shortcut on your desktop:

2.From the VT Transaction+ menu, select Help > Register Software:

3.Enter your customer number and license key, which will have been sent to you by email from info@vtsoftware.co.uk.

If you have not previously installed the software on the PC, you can use the Making Tax Digital (for VAT and Income Tax) features for free for 60 days without needing to enter a customer number and license key. All other features of VT Cash Book are free indefinitely.

Once installed, you will see a number of VT applications on your desktop. If you only do bookkeeping in VT Cash Book, you can ignore the other programs. Click on the VT Cash Book icon to open the application:

You need to create a data file for your business.

Note: If you are a sole trader with multiple business, and are VAT registered, please read Multiple businesses to decide the best option for creating your data file(s).

1.Select File > New Company:

Or to open an existing file, select File > Open Company, or Display > Recently opened files.

2.In the New Company/Business dialog enter/select the following details:

a)Company/business name: Enter the name of the business.

b)VAT registered: Tick if you are VAT registered.

c)Chart of accounts template: Select an appropriate chart of accounts for the business.

d)Click OK to save the file to your PC. You can save it to any folder but it is advisable to save it in a folder on a cloud drive e.g., Dropbox. If you do not have a cloud drive, you can set one up as shown in Sharing a data file on a cloud drive.

Note:

•The VT Cash Book data file is saved in whichever folder on your PC you choose to save it to. VT Software has no access to it.

•You should make regular backup copies of the file in case you need to refer to a backup copy in the event of loss of your file.

•You should avoid creating different versions of a file for the same business, other than backup copies.

1.Click on the caption at the bottom of the screen that displays [year not set].

2.Enter the dates of your business's financial year. For an unincorporated business, this is usually the same as the tax year.

For more details, see Financial years and periods.

Click on the Display bank account button.

By default, a current account and deposit account are available for you to use.

You can change the name of these accounts, or add any account details by selecting the account, right-clicking and selecting Properties. Please note, this is for your own information and is not strictly necessary.

If you need to create any new bank accounts, select any of the existing bank accounts, right-click and select New Account.

If you are using VT Cash Book for the first time and this is not your first year of business, you will have an opening bank balance to enter. This can be entered as instructed in Opening balances. If you have any other opening balances, such as a loan, tax owed to HMRC, they can be entered in a similar manner.

Payments and receipts

Payments and receipts from your bank statement can be entered in a batch by clicking on the P+R button.

1.Click on the P+R button:

2.Enter/select the following:

1.Or Liabilities, depending on which chart of accounts template you are using.

2.If the transaction needs to be split into different analysis accounts, see Split analysis.

For example:

Click on Save to post the transactions.

Note: If you want to import a bank statement from a CSV file, this feature is only available in VT Transaction+, which requires a subscription. If you have a current subscription, you can open your VT Cash Book file in VT Transaction+ and import a bank statement file as instructed in VT Transaction+ User Guide: Importing a bank statement.

Intra-bank transfers

If you have more than one bank account and have transferred money between the two, this can be recorded with the TRF button (Alternatively, you can enter a payment/receipt to each account as instructed above, selecting the other bank account as the analysis account).

1.Click on the TRF button:

2.In Transfer to, select the bank account receiving the money.

In Transfer from, select the bank account transferring the money.

Enter the amount in each Amount field.

Payment processor fees

If your payments received for sales are paid through a payment processing company who deduct a fee from each payment before remitting to your bank account, enter the transaction as shown in Payment processor fee deductions.

Credit card expenses

If you have a credit card for business expenses, create a credit card account as a bank account as instructed in Set up your bank account. You can then enter the credit card expenses as payments in the same way as instructed above, selecting the credit card account as the bank account. Payment of the credit card balance can be entered in the same way as an intra-bank transfer as shown above.

You can choose between various transaction reports to review transactions:

•To display a list of transactions by transaction type, select Display > Transaction > [Select the transaction type]. The double-entry of the currently selected transaction is displayed on the right. To search for a transaction, enter the reference number in the Find field.

•To display a list of transactions by transaction type in a printable report, select Display > Transaction List/Daybook > [Select the transaction type]. This can be sorted by reference number or date by clicking on the Selected/sorted by... caption at the bottom.

•To display a report of all, or a selection of different types of transactions in one report, select Display > Transactions Report.

•To display transactions in a particular account, select Display > All accounts > [Select the account]

To find specific data in a report or list, click anywhere within the displayed report or list and select Edit > Find. This exports the report to the VT Report spreadsheet application, where you can enter the data you are looking for in the Enter the text you want to find field, then click on Find.

The easiest way to adjust a transaction is to right-click on the transaction in any report or list that includes the transaction, select Edit transaction and change the entries as required.

Alternatively, if you require an audit trail of the adjustment, you can post a transaction that is the reverse the original transaction (by right-clicking on the transaction and selecting Make reversal copy), then re-enter the correct transaction.

If you need further details, see Correcting mistakes.

To review transactions in a specific account, click on the relevant button below:

•Display bank account:

•Display any account:

Then select the account, which displays a list of transactions in the account.

To obtain a report of transactions in all accounts, select Display > Ledgers report* > Multiple Ledgers.

To find specific data in any report or list, click anywhere within the displayed report or list and select Edit > Find. This opens the report in VT's spreadsheet program, VT Report, where you can enter the data you are looking for in the Enter the text you want to find field, then click on Find.

*This report is the equivalent of a general ledger report or nominal ledger report.

Performing a bank reconciliation is not strictly necessary but is recommended as part of good bookkeeping controls.

Click on the Reconcile bank account button on the main toolbar:

Then follow the steps in Bank reconciliation.

If you are self-employed or have property income and are required to use MTD for Income Tax, you need to submit quarterly updates of the totals of your income and expenses transactions to HMRC.

From the transactions entered in VT Cash Book, you can generate a quarterly update report and submit it to HMRC as shown in Submit a quarterly update.

If you are VAT registered you can submit a VAT return to HMRC as follows:

•To set up MTD (Making Tax Digital) for VAT for your own business, follow the steps in Setting up MTD: businesses.

•To generate a VAT return, click on the VAT returns button on the main toolbar:

This displays the VAT returns window. From the list of options on the left, select New VAT return > [Enter the dates] > Continue > Save. For further details, see Creating a VAT return.

•To submit a VAT return, click on Submit VAT return to HMRC in the VAT returns window. For further details, see Submitting a VAT return.

The methods of paying a VAT bill to HMRC are given at https://www.gov.uk/pay-vat. The payment itself is not generated from VT Cash Book.

To enter the payment transaction in VT Cash Book, enter a payment as shown in payments and receipts, and select the Net VAT due account as the analysis account (this is in the Creditors or Liabilities ledger depending on which chart of accounts template you are using).

The main reports in VT Cash Book that a business would typically use are:

•Transaction List/Daybook

•Ledgers report

•All accounts

•Balance sheet

•Profit and loss

And also:

•VAT returns (if you are VAT registered)

These reports can be generated from the Display menu. A full list of reports is given in Full list of reports.

Printing and exporting reports

•To print, save as a PDF file, or email a report, click on the Print button:

•To copy and paste any report to a spreadsheet, run the report, right-click and select Copy All. Then in your spreadsheet, right-click and select Paste.

•To export a report to VT's spreadsheet application, VT Report, select Edit > Export to VT Report.

Search for data in reports

•To find specific data in any report, click anywhere within the displayed report and select Edit > Find. This exports the report to VT's spreadsheet program, VT Report, where you can enter the data you are looking for in the Enter the text you want to find field, then click on Find.

To change the financial year to the next year, click on the financial year caption at the bottom of the screen and select Next:

This automatically generates a year-end transfer transaction (YET), which transfers balances in income and expenditure accounts to the accumulated profit and loss account in the balance sheet (i.e., retained earnings).

For further information, see Year-end procedures.