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DavidToohey · 29-08-2007, 04:50 AM

Brian

VAT is difficult to fiddle... apart from delaying invoicing so that rather than raising invoices at the end of a quarter, they can be raised early the following quarter... limited to businesses that can operate in that way.

It may be worth finding out on VAT supply and charging as it may be possible to change the way you charge VAT... unfortunately I don't deal with VAT much anymore and been years since I was really involved with it.

I think the main thing is on your reporting side to separate VAT from the Revenue... It may appear within cash received, revenue as such but it is better to look at P&L Statements to see the real picture of how things are... and use some form of rolling cash flow forecast when looking at your cash side, or simply the VAT Liability accounts on your Balance Sheet.

Just change the way you look at it, the reports and figures you are viewing and it will become easier... try to stay away from the actual bank account apart from using this to maintain & reconcile the books and manage the cash flow, better to look at a Bank Reconciliation to also see Cheques Outstanding etc.

I know you have changed accountants in the not too distant past (saw your thread), what service are you currently using from them? Is it mostly the year end compliance, or do they also provide monthly/quarterly services such as management accounts, VAT Returns? Just trying to get an idea of the extent they are involved and how much you manage yourself.

29-08-2007, 04:50 AM	#7 (permalink)
DavidToohey Member Join Date: Aug 2007 Location: Poland Posts: 79	Re: How to reduce VAT? Brian VAT is difficult to fiddle... apart from delaying invoicing so that rather than raising invoices at the end of a quarter, they can be raised early the following quarter... limited to businesses that can operate in that way. It may be worth finding out on VAT supply and charging as it may be possible to change the way you charge VAT... unfortunately I don't deal with VAT much anymore and been years since I was really involved with it. I think the main thing is on your reporting side to separate VAT from the Revenue... It may appear within cash received, revenue as such but it is better to look at P&L Statements to see the real picture of how things are... and use some form of rolling cash flow forecast when looking at your cash side, or simply the VAT Liability accounts on your Balance Sheet. Just change the way you look at it, the reports and figures you are viewing and it will become easier... try to stay away from the actual bank account apart from using this to maintain & reconcile the books and manage the cash flow, better to look at a Bank Reconciliation to also see Cheques Outstanding etc. I know you have changed accountants in the not too distant past (saw your thread), what service are you currently using from them? Is it mostly the year end compliance, or do they also provide monthly/quarterly services such as management accounts, VAT Returns? Just trying to get an idea of the extent they are involved and how much you manage yourself.