Taxes are considered a major source of funding for countries. It is a fact that tax processes improperly implemented can greatly affect a country’s financing. Currently, technology has permeated every aspect of our lives and the tax process is no exception. Enterprise Resource Planning systems (ERP), and tax compliance software can help your company in several ways. So why is VAT technology a necessity for your business?

Increased Work Efficiency

Technology not only gets more work done, but also increases the efficiency at which that is achieved. Tax technology will enable your business complete tax related tasks faster, with increased accuracy using minimum help from humans.  An ERP system well designed, with a comprehensive VAT set-up can lead to greater accuracy and efficiency.

ACCA Global explains that, technology eliminates repetitive tasks and decreases reimbursement waiting time. Implementing automated tax solutions saves your company the time it would have spent keying in basic information and following up on receipts.

With advanced VAT technology, consolidation of data occurs which allows you to discern spending trends to identify where savings are possible. Understanding VAT requires knowledge on where and when to find the correct information. Processes must be efficient with occasional spot checks to ensure compliance.

Easier VAT Management

Modern ERP systems come equipped with a variety of VAT functionalities for easier VAT management. To fine tune these functionalities to suit your business, you need to configure them, maintain and review them continuously. An optimal ERP configuration is characterised by all-inclusive tax rules, a collection of tax codes and accurate tax classification.

Each time you implement this system, there are specific VAT steps to follow in ensuring compliance with VAT obligations in specific jurisdictions. ERP system configuration requires comprehensive knowledge on VAT laws in your jurisdiction.

Technology enables you to calculate, record and make reports on transactions related to VAT. It can offer your business a powerful method to manage tax functions including VAT on purchases and sales with real-time determination. Through tax technology, you can access better and well-detailed audit reports, which you can process easily.

VAT Automation and Compliance

Taxes are a vital aspect of business. The process of submitting tax returns requires a lot of attention to avoid mistakes. VAT is incorporated into numerous business functions therefore its management must apply a well-planned approach. VAT technology can streamline automation and compliance smoothly, helping your business systematize VAT transactions.

According to PWC Ireland, automating VAT compliance significantly lowers the risk of error, reduces costs and permits reallocation of resources within the organisation. Technology also increases transparency and control over the compliance process. E-invoicing, the digitalisation of invoicing, enhances your competitiveness while offering you substantial savings.

The well-being of your company’s VAT compliance is based on the technology in place and individuals in charge of operation. Its largely determined by the resources spent generating your returns. Automation reduces invoicing costs, increases efficiency and help you become environmentally responsible.

Whether you run a small or large business, VAT technology is the best way to take your business to the next level. You will no longer have tax compliance issues, your employees work efficiency will be increased significantly and you will experience easier VAT management.