If you own a business, you likely have to file VAT returns. This is an important part of running your small business.
However, if you have yet to learn what VAT is or how it works, it can be challenging to understand why your accountant insists on doing your VAT returns for you.
If you need to figure out why you should let your accountant do your VAT returns, then read on to find out why it’s so important that you do.
What Is a VAT Accountant?
A VAT accountant is a person who will be responsible for doing your VAT returns. They are experienced in tax accounting, and they know how to navigate the complicated world of VAT regulations.
A VAT accountant will work with you to ensure you’re reporting accurately, but they’ll also help you get the best possible results from your filings. If you have any questions or concerns about your VAT returns, they can be an excellent resource for getting answers—and they can also help you improve your business practices if necessary.
Why You Need a VAT Accountant?
There are many benefits of using a VAT accountant. Here are some of them:
1. Better Understanding of VAT Law
A good accountant will know how the VAT law works and how it applies to your business. They can use this knowledge to help them avoid mistakes and save money.
2. Help with Your Business Growth
If you’re growing your business by expanding into new markets or more products or services, keeping track of everything that needs to be done can be challenging. A good accountant can help you manage this growth without making any mistakes which can cost you money later on down the line when HMRC catches up with you.
3. Filing Will Be on Time
Paying your taxes on time is important, not only for your peace of mind but also because it will help you to avoid late payment charges. A good accountant will ensure that all your tax returns and accounts are filed on time, so you don’t have to worry about them.
4. The Details and Information Are Accurate
One of the essential things in accounting is ensuring that all the details are accurate. If you need to figure out what tax you should be paying on something or what information needs to go into a particular account, it can be challenging to keep track of everything that needs to be done.
5. Help You Save Time and Money
A good accountant can help you save time and money by ensuring that your business complies with all the laws and regulations that apply to your industry. This includes VAT, which means that they’ll be able to help you avoid fines or penalties from HMRC if there are any mistakes on your returns.
6. Understanding of Different Types of VAT
Accountant will have an understanding of different types of VAT and they can advise which VAT scheme is best suited for your business and how different VAT schemes work. These include Standard rate, Flat rate, Cash basis and other forms of VAT. Accounting firm specializing in VAT providing you with this information will be valuable to you.
7. VAT Threshold
Accountants can calculate the VAT threshold. The VAT threshold is the amount by which you must register for VAT. Once you’re registered for VAT you must charge VAT to your clients and you can claim VAT on your purchases.
8. Offences, Penalties and Interests
Accountants can save you from penalties and interest complying with it’s deadlines. If VAT return is filed late, HMRC might sends you penalties and interest on unpaid tax.
9. Help You To Improve Your Business Cash Flow
Cash is the most important element to keep your business running. Strong control over cash flow is very important for small businesses and you will not be able to make decisions to run the business without sufficient controls over the business’s finances. Accountant can help you achieving this by selecting and implementing best VAT scheme for your business.
If you own a business and feel overwhelmed by the idea of doing VAT returns, consider leaving it up to your accountant. Even if you want to do them independently, they can still be challenging. Accountants can help you with everything from calculating the VAT to filing returns, and they’ll be able to ensure that your business is compliant with all the laws and regulations that apply. In addition, they can advise you on how best to structure your business so that it’s profitable.
As a business owner, you’ll know that every business element must be handled carefully. A VAT accountant will be able to help you with every aspect of VAT and ensure that your business is compliant with all the laws and regulations. Contact YRF Accountants Ltd today to learn more about our services and how we can help your business.