Vat and bookkeeping

Bookkeeping is the backbone or a source document of all transactions and operations of the business. All the reports, management and financial decisions are based on and linked to the same source document or bookkeeping records. So it is clear why we need to have very good controls around book keeing. Today we are focusing more on VAT, checklist and ensuring that vat return is complete and accurate before we submit it to HMRC. I will not go through the basic list in detail, but more about technical issues we should be aware of.

Pleo/Dext/Dext Precision.

We recommend using pleo, dext or dext precion to record and review to make it easier to spot any errors on the vat return.

The first step can be to check that the bank balance is correct and matches the bank statements. if the bank feed is not working, the first call should reconcile the bank with the actual bank statements to avoid missing or duplicated transactions.

It is also important to understand how the connected apps work, especially if they are integrated into Quickbooks or xero. Go cardless, stripe etc. Don’t be afraid to ask for view-only access for Go cardless, stripe etc, from the clients.

Debtors and Creditors

we have seen so many times debtors/creditors are outstanding for years and no one questions the accounts, not even at the year-end. Most of these transactions affect VAT. It could be writing off invoices as bed debt or correcting any duplication invoices. Is there a debtor’s list, correct? Have you queried the outstanidng debtors with a client? Is the trade creditors right? Have you queried the outstanding creditors with the client?

The above questions can significantly affect the vat return due to errors, or you may have to write off some balances or sales & purchases were incorrectly entered.

Disallowed expenses.

Going through the expenses to see if all the costs are allowable for input VAT claim.

Please download our full VAT checklist from the resource section so that the team goes through the checklist while doing the vat return.

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