It comes as no surprise that every office faces regular budget crises: which department deserves a bigger piece of the pie, which department exceeded their goals in the previous years, etc. And while there is a lot to take into account, let’s not forget that every employee has most likely made a purchase that had some amount of VAT attached to it.
Business VAT reclaim is a concept that gets more complicated almost on a daily basis, given how often countries change their policies, and the number of different policies even just within one country for reclaiming VAT.
The reason VAT is even being mentioned in this article is the fact that when you account for the time, effort, paperwork, and organization needed to manage your business VAT reclaim, financial management needs to be a play a more significant role in your budget than you might have originally thought.
A good Chief Financial Officer is a good start to building a successful financial branch for your office, but without the right tools for VAT management, your business could lose valuable funds and miss out on a significant amount of their VAT reclaim. So, wouldn’t it seem it’s worth investing in your company’s own financial well-being?
What Business VAT Reclaim Looks Like Today
In an article for Startups.co.uk, John Davies, head of business law at the Association of Certified and Chartered Accountants, said, “When small businesses complain about burdens on business and regulation, VAT always comes out either at or near the top.” And with the number of small and medium companies on the rise, this is concerning. There are a number of minute details and if your company does not have a staff ready to handle every potential transaction, you could be setting yourself up for internal financial failure.
That’s a rather grim perspective, quite honestly. But the truth is if a financial system isn’t devised when a company is first established, or when they first start expanding on an international scale, a company’s accounting staff can be left with piles of untraceable receipts and transactions that will ultimately remain unaccounted for. Therefore, it’s best for companies to do 4 things when establishing their business systems:
- Put an emphasis on the finance division. Don’t let it fall through the cracks.
- Train your employees correctly on how to file or enter paperwork, and hold regular update sessions as new employees join the company or as policies change.
- Make sure your financial team has the tools they need, whether it be the newest update for their software, or the extra assistance in order to prep for a scheduled audit.
- Keep yourself and the rest of your team up to date on the new VAT policies. Just because you may not work directly in the finance department doesn’t mean it’s not important that you be familiar with the regulations.
Where Does the Battle Come In?
The short argument is that there shouldn’t be a battle. Your company’s financial health and standard should be the one primary focuses of a company’s budget and they are too important to be get shorted when the department discretionary budget battle heats up each year. Your financial team should be valued as one of the most important departments at your company. Otherwise, you could be looking at a very dismal future.
However, VAT technology has now begun to play a role in the game. By equipping a company with the right systems, it is possible to cut down on the headaches that go along with VAT-related issues. If your company decides to make such an investment, you can streamline VAT systems, including data entry, relevant tracking information, and even simplifying organization in the case of a surprise audit. In short, by empowering your company with one tool, you can reduce spending, increase your business VAT reclaim, and most likely, keep all parties happy by having a little more flexibility with that departmental discretionary fund.
With the new technology available, the future can look brighter for many companies of all sizes. It’s important to find a system that is adaptable and can help meet your business needs. Many companies also offer continuous support so that you always have a human resource in addition to that of a machine. In other words, the future doesn’t have to be so bleak. It’s a matter of the right distribution of resources and therefore the right balance for your company to find success.