How to remove bottlenecks in your vat return process

At accountabl, we know all too well the administrative burden placed on accounts departments when trying to keep VAT efficient (or compliant) books.
 

After all, that pain point is partly what lead to the creation of accountabl.
 

As you know, until the sales and purchase ledgers are closed, the VAT return can’t be finalised. Fine-tuning these systems key to a timely close.
 

When we examine the process, bottlenecks quickly become apparent with some of these being seemingly outside the control of the finance team or even the organisation. For example:

• Chasing employees for missing expense reports and receipts
• Waiting on other departments to enter data or approve information
• Chasing suppliers for invoices
   

Read on to learn how to address some of the core issues. 

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How to resolve external bottlenecks in the VAT return process
 

It’s too easy to accept the idea that external issues are beyond our control.
 

The most common hurdle finance teams must overcome is late supplier invoices because you can’t process what you don’t have.
 

Our top tip to stop this is to insist that suppliers invoice you electronically, which benefits everybody, saving your supplier’s postage costs and saving your department processing time. It also reduces your reliance on paper.
 

Depending on your relationship with your suppliers, you might insist on credit terms from the date of receipt of invoice –providing an incentive for your suppliers to invoice you promptly, so you can get them in earlier and finalise the close process sooner.
 

How to resolve internal bottlenecks
 

When you focus on your businesses’ limits, you’re really asking the question: “How can we process and approve invoices more efficiently?”.
 

Broadly speaking, you can do this using communication and technology.
 

Better communication for VAT returns
 

Effective communication is vital to understanding your organisation’s bottlenecks.
 

Hold team meetings with the goal of identifying the parts of the process that create delays. Ask questions such as:

• Are invoices sat around waiting to be approved?
• Are there invoices that haven’t arrived yet?
• Are there costs that we are unsure where to allocate?
   

Encourage buy-in by brainstorming together on how issues can be resolved rather than making unilateral decisions straight away.
 

Come armed with potential solutions to get the conversation started and work backwards from the outcome to figure out what holds processes up.
 

Communicate clear and achievable objectives for closing the sales and purchase ledgers, and how person’s role fits within that plan so that everyone is working towards the same goal.
 

Actively promote the benefits of a shorter shut down so that employees understand it. 
 

Enhance your VAT returns with technology
 

The chances are, if you weren’t already using a digital accounts package, then because of the government’s drive to “Make Tax Digital”, you will be now.
 

We strongly advocate the intuitive accounting packages like Xero, Sage, and Quickbooks.
 

These products really come into their own when paired with invoice capture software or expense management platforms.
 

Dext (formally Receipt Bank) or SAP Concur are handy for scanning and processing invoices from multiple vendors automatically, with very little human intervention required.
 

In contrast, accountabl is specifically designed for managing expenses from the card transaction through to the finance team’s reconciliation; compiling company-wide spend into one platform that integrates seamlessly with your accounting package.
 

These tools not only reduce processing time but also streamline the approval process, so the month-end close and VAT return can be completed sooner.
 

How accountabl can help
 

The age-old issue of piles of paper receipts, often unauthorised and without context, with no uniform expense report is a familiar issue that adds hours to the month-end workload. 

It doesn’t have to be this way. Our system, including a payment card linked to an app and web-based management portal, saves hours on low-value admin tasks.
 

For employees, the payment card sends an instant push notification to the app, prompting immediate receipt capture to create a digital record of the expense. Which eliminates expense reports, freeing up time to focus on the job.
 

For managers, the app boosts control with pre-set spending limits and spend category restrictions on cards. This, paired with approval of expenses whilst on the go, offers the confidence, flexibility, and convenience needed to streamline expense processes.
 

For accountants and administrators, the web-based management portal will transform back-office processes with automated VAT calculations, real-time data, and the ability to monitor and analyse spend well before the month-end.
 

Next steps
 

Increasing efficiency starts with taking a step back and looking at your processes holistically, so you can understand what hinders them. Only then can you begin to move forward.
 

Fortunately, products like accountabl give you the ability to remove the bottlenecks in your VAT return process, freeing up time to focus on high value tasks. 

Say goodbye to your VAT bottlenecks today, with a 30-day free trial of accountabl.