Footprint Business Consulting

VAT returns are a necessary evil for most companies. Few companies enjoy doing their VAT returns, but it is a government tax, and failure to make the necessary returns is an offence that no company can afford to make. VAT returns are made at the end of each VAT period, which is usually every three months. There is a definite format to follow, and the forms are really quite easy to get to grips with after just a short while.

VAT stands for value added tax. It is a tax on sales and it is calculated as a percentage of the total sale. In this way it is similar to the sales tax imposed in the USA. However, VAT is a more complicated form of tax than the American sales tax, and can appear impossible to understand at a first glance for many. France was the first country to introduce a form of VAT in 1954. Dr. Wilhelm von Siemens, the German industrialist, had proposed the system in 1918, however.

It is usual, in the UK at least, for VAT to be added to the total price the consumer pays. When the tax was initially introduced in the UK on April 1st, 1973, it was common for items to be priced as normal, but have the VAT added when the customer paid at the till. This was not a popular way of paying the tax, and before long most companies had adopted the idea of adding the VAT first and presenting the item price plus the VAT to the customer as the total price they were required to pay.

This is how VAT is paid today. Few people try to work out the price of an item minus the VAT before they pay it. We have all become used to the idea of paying the full amount, knowing that VAT is included. This is easier for most people to understand and accept, though no doubt most of us would be happier if we did not have to pay VAT in the first place. Read more…

Every business, whether small or large-scale, has an accounting department. This is very necessary in order to enable the business owner to see and assess if the business is thriving or if it better close down. And to do this, many business owners resort to hiring a professional for the job— an accountant. However, doing so would mean segregating a significant amount to pay the accountant’s fees. And this is going to be a big matter for the company.

Thanks to modern technology, business owners can now skip hiring an accountant and adopt online accounting software for business. And with its growing popularity today, there is already a number of accounting software available in the market, each suited to the unique and individual needs of businesses. And to make sure that only the right online accounting software is chosen, here are some simple yet smart tips to consider.

1. Before even starting to select the appropriate accounting software, it is important for the owner to verify and evaluate if there is even a need to buy one. For businesses that are very small, there may be no need for such software. Business people who are freelancers or sole traders may actually just skip it.

2. The accounting software must have multiple user access. This is one good feature that has to be present. People from the same company who work directly with accounting should be able to have access to the account anytime, anywhere as long as there is internet connection. This enables the business owner and other employees to take the business with them everywhere. Read more…