Many businesses have to think about VAT at one time or another. Some businesses decide to register voluntarily right at the start. This is especially true if they know they will be making a lot of purchases and they can therefore save a percentage of their purchases by claiming back the VAT.
However for other businesses it makes sense not to register until the time comes when they reach the required threshold to do so. When this occurs you need to get on top of regular accounting because you’ll need to submit a VAT return every three months.
There are all kinds of accounting software packages out there today, all of which provide services for VAT accounting as well as regular accounting. So could using one of these tools make life a lot easier in this sense?
It certainly could. Every business has a different way of keeping records but software programs have made it easier to collate many of the different requirements together in one place. For example you have invoices, quotes, payments, banking and accounting to deal with. All these elements and others as well can be brought together in one place and this alone makes life easier for you. In fact if you already use an accounting software program the move to do VAT as well could be a lot easier than you think.
If you aren’t yet using this type of software the first thing you should do is to compare the variety of leading options on the market today. You can check out the different packages and see what they offer in terms of general features as well as catering for VAT requirements. You will usually find they cater for various VAT rates so whatever type of business you have you should be able to start using your chosen software more easily than you might think.
Generally speaking you should give yourself a day or two that you can devote to finding out more about your software once you get it. Read up on it thoroughly and transfer your current documents into the new system. Trying to do this gradually is harder than devoting a couple of days to it initially. Once it is up and running you can use it for all your business paperwork – including of course your VAT information. This will also make your VAT returns a lot easier to fill in because you will be able to access all the information you need at your fingertips.
If you can find an easier way to run your business while tackling the new prospect of VAT returns every three months as well, you’ll definitely be onto a better way to handle your paperwork.