VAT management is a solution to the complex process of VAT processing. It ensures that no VAT goes unclaimed while providing complete VAT tax compliance. VAT processing is every tax accountant’s nightmare. It gets worse with a multinational company. The task of researching on global VAT laws, the complex calculations, and the complication which results from erroneous calculations is a headache anyone would happily avoid.
Automated VAT management is a solution provided by VAT companies. It is the use of intelligent and knowledge-based software to process VAT. It eliminates the element of human error resulting in a streamlined and accurate VAT process.
Why Most Companies Lose their VAT Claim
VAT recovery is a very complicated process. You have to consider a lot of factors such as the location of the purchase, the quantity of the item, and the nature of the purchase. The use of manual methods to process VAT under these complex conditions results in errors. In addition, VAT rates are always changing. For staffs who are already burdened with other tax compilation tasks, it can be hard to keep up. The work of studying and understanding local and foreign VAT laws, exemption certificates, and following up on recoveries is daunting. Errors and mistakes are sure to happen. What results is lost money in the form of unclaimed VAT and non-compliance which carries its own set of legal and financial consequences. Automated VAT management is the solution to not only avoiding VAT-related losses but also giving your tax staff an easier time. Here are a few reasons you should consider investing in VAT software.
Benefits of Automating VAT Management
It leads to the increased general performance of a company. By automating VAT, tax staffs spend less time researching, addressing tax errors, and making complex VAT calculations. Instead, they shift their focus to other tasks that require human resource such as strategizing on cost-saving. The financial reports produced with automated VAT are accurate reducing the high costs of audits. Accurate financial reporting is essential in the planning and creation of financial policies. You can avoid the legal and financial consequences of non-compliance with VAT laws by automating your process. The software ensures effective global compliance is achieved every time. Unlike humans, a system generated VAT process leaves no room for errors making it an efficient method. It collects data from multiple existing systems, validates and checks for eligibility, cross-checks with third-party sources and eliminates duplicates ensuring that the process is error-free. With the software processing every hidden VAT, you can be sure that losing your VAT gains will be a thing of the past. Automated VAT processing is fast. There is always so much to do and so little time. Reducing the time spent on VAT processing creates time for other essential tasks. You have nothing to worry about the safety of your company’s VAT data. It is not just safe, but easily retrievable on a need basis. It also makes it possible for the tax manager to revisit past reports. Technology is fast evolving. It has made life easier by automating complex processes, and VAT processing is no exception. Automated VAT management frees the tax personnel enabling them to focus on more important things. It reduces errors in the process leading to accurate financial reporting and ensures complete compliance while keeping your VAT data safe.
Source: Proshare
