Why Your Business Needs Accountants to Prepare VAT Returns
According to some accounting software companies, filing a VAT return is simple. Even if you don't want to (or have the time for) DIY, simply pressing a button could result in you paying the wrong amount of VAT or submitting erroneous data.
Yes, simply clicking a button, the VAT return is created and filed. You must check your details and pay the right amount of VAT to HMRC in addition to these two clicks.
It’s critical to empower business owners and encourage their independence. However, seeking professional assistance can make certain activities easier. Read on to discover why you might need accountants to prepare VAT returns.
Not Everything Can Be Modernised
Years of expertise and training are required to ensure that the data is accurate. It is simple to click a button, but responding to certain requests is not always simple. Only professional accountants can tell you what your flat rate percentage is, explain to you an effective strategy, tell you if the VAT rate is correct, if transactions were successful, and more.
Professional Accountancy Guidance Saves Trouble
Your accountant or bookkeeper will do the essential quarterly checks to safeguard you from unexpected bills and audits. Accountants do more than just pushing buttons. They will double-check the data to guarantee that your VAT claims are correct. They will also ensure that you use the correct scheme and percentage if you have a fixed rate.
DIY enterprises are susceptible to the same temptation. They use flat pricing due to their industry's low-profit margins. Later, they learn that, as a low-cost trader, they do not match the industry's per cent standards. As a low-cost trader, they should utilise a higher percentage.
Using a lesser rate than you should have has left you with an upcoming backdated VAT tax that you did not expect and may not be able to afford. Depending on how long the error remained, the cost may be substantial.
Today, flat-rate corporations are unusual. For the vast majority of enterprises, the technique is prohibitively expensive. Cash or accrual accounting is preferable.
Many firms take advantage of the 1% first-year discount. Another way to avoid paying VAT and accruing HMRC debt. These errors may also subject you to an audit and penalties if HMRC considers the error to be negligent or malicious.
Both are costly blunders. The software will not notify you of any errors.
Even The Best Technology Isn’t the Best option
It is tough to know when to file your return and remain in good standing with HMRC. Modern accounting software, no matter how clever and forward-thinking it is, will not warn you when it is time to file your return with HMRC. DIYers must remember to complete this work on a quarterly basis. HMRC will penalise you if you miss a deadline.
Although times are changing, the need for professional accountancy services is still unmistakable, especially for businesses everywhere today. Thus, it is highly recommended that you consult and work with a VAT accountant. This way, you will have confidence that your VAT claim is correct and error-free.
You must outsource or delegate labour as a business owner to have more time to oversee the company, manage your team, engage with clients, and create sales. Time management is essential to all types of growing businesses, in consideration of the fast-paced environment today. As such, accounting should be simply left to professionals.
Are you in need of accountancy services? The 1 to 1 Accountants are here to guide you through growing your business. Work with us today!