Do you struggle with VAT sales and reporting? Is HMRC compliance an arduous task? If yes, introducing your company to Xero’s VAT features is just one of the ways Flow can help you get to grips with your finances. Our team of cloud accounting experts can help you slash the time spent on these responsibilities by ensuring that your accounting software does the hard work for you.
Interested in knowing more? Here are some of Xero’s time-saving VAT features:
VAT reporting in Xero
Did you know that Xero accounting software supports the Accrual Scheme and the Cash Scheme for both standard VAT reporting and flat rate reporting? Using Xero, you can generate a return for either a VAT Return or a Flat Rate VAT Return. You can set your scheme on the Financial Settings screen, choosing ‘Accrual’ or ‘Cash’ for either standard VAT reporting or Flat Rate VAT reporting.
Is your Xero account managed by your accountant or bookkeeper? If yes, you can use the Cashbook Client user role to access your bank accounts and publish your VAT Return and Bank Reconciliation Summary.
Simplifying the Flat Rate Scheme with Xero
HMRC’s Flat Rate Scheme for VAT is extremely simple for businesses without accounting systems. However, it can be extremely complicated for those wishing to take advantage of the benefits of a cloud-based accounting system. Fortunately, Xero supports the Flat Rate Scheme and simplifies the process too. Once you are registered with HMRC, you will receive a rate. Simply enter your rate into the Xero Flat Rate VAT Return and Xero will do the calculations for you.
Important Note – By switching on the Flat Rate Scheme from your Xero Financial Settings page, a few alterations to your VAT rates may be required. If you’re unsure how your VAT rates might change, Flow’s team of expert cloud accountants offer advice and hands-on assistance.
Setting up Xero for EU VAT reporting
Following the introduction of new European Union VAT legislation for businesses supplying digital services such as software and web services to EU consumers in 2014, getting to grips with EU VAT can be time-consuming and expensive.
However, you can register with HMRC’s VAT Mini One Stop Shop (VAT MOSS) scheme. As a result, you won’t have to register for VAT in every EU country where customers buy your digital service. If you have registered for the scheme, it’s now possible to record and report your MOSS sales from Xero.
VAT assistance from Flow Accounting
At Flow, we appreciate the time and energy that goes into day-to-day financial operations, which is why we strive to make life easier for all of our customers. With our innovative accounting services, you’ll have the right tools and technologies needed to take control and stay on top of your business’s finances.
With Flow and Xero combined, you’ll have accurate real-time information about your business financials at your fingertips, plus a dedicated Flow adviser on hand to help. And the result? You’ll have complete confidence that every task – from VAT returns and cash flow forecasting to HMRC compliance and payroll – are under control. And wouldn’t that be helpful?