Benjamin Franklin once said that there were no certainties in life, other than death and taxes.
Had he been alive in our times, he might have added something extra to the latter - namely, that those taxes were sure to be rather complicated.
The processes involved when it comes to everything related to VAT (Value Added Tax) management are often trying, confusing, convoluted and most of all - a time consuming headache for everyone involved. This is almost a ubiquitous view, whether you're running a small, one-person business or a large company - you're certain to come up against the horribly frustrating process which is VAT calculation and recovery.
Yet, there’s one potential answer to this issue, and that is VAT automation.
The History of VAT Automation
We live in a world where technology is making our lives much easier - so why can’t this be applied to VAT too?
For that answer, we need to look back a little. VAT automation has always been around in some form or another, but even the companies who were lucky enough to have access to some of the software aiding the process still found them to be full of issues and challenges to overcome. Namely, the frequently changing rules and regulations when it comes to VAT worldwide, which made it almost impossible for a decentralised, pre-internet software to keep up. Luckily, the VAT automation we enjoy today has software so technologically advanced- which automatically updates itself - that the ‘bad old days’ seem like a century ago.
But What is VAT Automation?
Quite literally, it is software which automatically calculates everything VAT-related for you. The constantly update themselves according to new (frequently changed) regulations, saving you immeasurable amounts of time and frustration. Not to mention, the accuracy provided by such top-notch software means you need never double-check your figures again, or worry you've made a mistake. Another added benefit: these shiny new solutions are so perected, you can bet you’ll reduce costs on your compliance - so there will be far fewer (if any) compliance issues to deal with.
On a Compliance Note:
The HMRC - and other tax authorities - are always on the lookout for companies who may not be fully VAT compliant. As a result, employees tasked with gathering, collating, analysing and scoring those final numbers are highly pressured to do so correctly for the good of the company.
Not only does this take huge amounts of time to do, it's more than likely that there’ll be some human error involved.
Yet, with a technologically advanced VAT automation solution, that time will be saved - and there will be absolutely no human error in sight. It’s a win-win situation for employees and companies alike!
Think about it: gathering data quickly - including every relevant transaction, and cross-referencing it with 50,000 tax codes (plus!) means a business need not rely on a pressurised employee to analyse, validate and present every valid VAT scenario possible. Therefore, the whole process is not made only more efficient, but controlled and therefore effective. It’s something which should be highly considered, when it comes to tax season.