Registering for VAT is a big event for any business owner. Some people register when they first start their business. Others might wait until they are somewhere near earning enough to reach the VAT threshold.
Whenever you do it, it makes sense to think ahead with regard to recording and paying the right amount of VAT. Since many business people are switching over from spreadsheets to software, it makes sense to look into using VAT-friendly software as well.
You may occasionally find a software package that is ideal for all your financial needs and records. You can record sales and purchases, as well as handling all your VAT needs all in the one place. On the other hand, you might want to find a specific VAT program to use in this situation.
If you haven’t yet made the switch to using software for your business records, you may want to think about doing so when you need to register for VAT. It takes time to get used to any form of software, but once you are used to it you will probably find it is much easier and faster to get to grips with your business records. The same applies with regard to calculating the amount of VAT you need to pay.
Making the switch to using software is a big step. It’s also one you might feel nervous of making, particularly if you aren’t very computer-friendly. However, in today’s world it makes a lot of sense to use software, especially as many things can be automated for you. It may take a short time to set everything up, but it makes it much easier to reduce the odds of making any errors.
For example, you might find you can enter the products or services you sell, along with a list of the VAT rates applicable to each one, once you are registered. This means you can easily see exactly how much VAT is applicable to each product or sale. It also means you can more easily bring together the figures you would need when you are due to create your next VAT return.
No one likes doing paperwork. And that is the exact reason why many people will benefit from using a software program, either for assisting them with VAT returns or simply with making their business records much easier to maintain.
So perhaps now is the time to start shopping around to see what VAT-friendly software is out there. You might be surprised at the choice, and you may also be surprised to learn how affordable some of these options are. The sooner you make the switch from paper to software, the easier it will be when the time comes to register for VAT – whenever that may be.