Key Performance Indicators, or KPIs, are used by businesses as a way to measure how well they are reaching their goals. The business may have overarching KPIs, as well as KPIs for individual departments within the company. KPIs are measurable and specific goals. They engage the company as a whole, giving everyone a clear idea as to how success is measured in different areas, such as efficiency.
Automating processes that are currently done manually is one way to boost your company’s productivity and increase KPI performance. When it comes to a task as complicated as determining the VAT recoverability of business expenses, automation can be very beneficial. Below are three ways automation of VAT processes can increase your business’s productivity.
- Reduce Costs
The time your employees spend on learning the intricacies of VAT rules and filling out VAT forms is costing your business a lot of money. VAT rules are ever-changing, and the forms necessary to properly file your company’s tax return for business, travel, and subsistence expenses can take a lot of time. Introducing an automated VAT filing process can free up your employees’ time and energy so that they can focus on what they do best. You hired them because you saw them as an asset to your company. Don’t waste their talents on VAT forms and learning the ins and outs of VAT law. Automate your VAT filing to increase your employees’ productivity and save you money.
- Reduce Error
VAT professionals spend a large percentage of their day staying up-to-date on VAT law and new changes to this area of law. There are so many details that need to be considered in order to determine the VAT recoverability for certain expenses. A small detail may be the difference between an expense that can be included on a VAT return and one that cannot. Chances are, your employees spend only a small percentage of their time, if any at all, studying VAT law. This lack of in-depth knowledge can result in errors in filing for VAT, which can result in less VAT reclaimed by your company. In addition, manually filing VAT can result in simple human error. Automation of VAT processes can reduce filing errors and help increase your company’s global VAT compliance.
- Increase Productivity
Successful implementation of any automated process requires that employees and managers from all levels of the company support the process. Automating the VAT process relieves the stress felt by travelling employees when having to decide if the travel expense they have incurred qualifies for VAT recovery. This relief translates into greater productivity for your employees, as they can now focus on their core responsibilities. With an automated VAT recovery system, you also are able to recover all the VAT your company is due. This can create an improved bottom line for your company over time.
These are just a few benefits an automated VAT system can provide to your business, in terms of understanding the recoverability of VAT and increasing KPIs.