Have you ever wondered how you would feel, after you have deposited money in the bank, and the bank thinks it to be its own and refuses to return back to you? How would you react to this, Frustrated!!! Angry!!! “What are you talking about? Have you gone mad? Are you out of your mind?”
In the course of our business there are some funds we have which we are just the custodian. It would be a grave mistake on our part to think it as ours. Few of them would be, employee gratuity, employee leave salary, vat etc. Let us look at VAT. The Vat that we collect from our customers is not our fund. We have to return this back to the government as we are just the custodian of it. In case you are not using any accounting software to manage your accounts please make sure that you do not consider vat as part of your turnover. From the day we receive the fund we should keep a separate provision for VAT. Hence at the time of VAT return filing we are not panicking to gather funds to pay our VAT. Failing to filing a return and paying the same on time will attract fines which increase daily. VAT is never a cost to companies only cash flow needs to be managed carefully. In these trying times of Covid-19, we need to be more vigilant on our cash flows. Every penny count, save wherever you can, be ready for VAT.
At Beyond Numbers we are happy to provide VAT assistance and cashflow management at very reasonable rates. For further details please visit beyondnumbers.ae #beyondnumbers#vat#cashflowmanagement#covid#19#positive#outsourceaccounting