Do you have a boss who has done this and can tell you what it is that they expect and how to do it via your software? As its easier to be shown rather than try to explain on here. But will give it a go!
Depends on the software as to where you find the info. Either way its about 'proving the figures' just as it is with the Bank rec/net wages rec/debtors rec etc.
Assuming standard VAT
Run a VAT report as you would normally, just dont save it, then check it.
Eg for box 1
(1) The figure in Box 1 should agree with the activity history balance on your Sales Tax Control Account for the same period.
(2) You should also be checking the vat element - from customer invoices less credit notesplus qualifying bank receipts/cash receipts and credit card receipts/journals - all should be able to be obtained from the relative day books and various reports in your software.
You need to check for the type of errors you check for when doing your normal VAT process eg - Manual adjustments - figures not cleared from control accounts at time of last return - entries marked at outside scope when they should be in. - previously unreconciled entries
The list is endless.
And so onto the other boxes on the return....
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
My boss never explains things properly. I also have intercompany to reconcile and he hasn't explained that very well either but I am going to have a go at doing it myself.
The system I use at work is called SAP. It's not an up to date version and the VAT module doesn't work on it so all VAT is done manually.
When the VAT returns were submitted the postings were not made so I am only just catching up with that now.
I will try and have another look at it tomorrow and see if I can get my head around it. I am sure I am making it seem harder than it is.
Kind regards,
Elaine
ps had lots of interested parties for my company. Only met with one who is local to myself and they have now changed their minds as there is bookkeeping involved and they do not have a bookkeeper on site.
My boss never explains things properly. Probably cos they dont know and dont like to admit it!! Ive worked with quite a few like that, have a tendency to shout a lot/be bullies! I also have intercompany to reconcile oh I hate inter-company stuff, last one I had I resorted to numerous spreadsheets to help it all sink in and he hasn't explained that very well either but I am going to have a go at doing it myself. Present him with your findings and say you want him, as your line manager, to check it very thoroughly and let you know the errors to aid your training. See if he finds any!!
The system I use at work is called SAP. It's not an up to date version and the VAT module doesn't work on it so all VAT is done manually. Oh boy! Are there lots of entries? Hope you dont mind me asking - but who does the VAT return and are you comfortable with understanding what goes in it ie Vat legislation/what is allowable and due v. what your company does?
When the VAT returns were submitted the postings were not made so I am only just catching up with that now. Thats not so bad and easily sorted. Just a thought - how to you account for eg a purchase invoice dated prior to the month end you have just done? As that sort of thing can throw it all out if its not done so its picked up properly in the manual VAT AND the reports you produce to check it.
I will try and have another look at it tomorrow and see if I can get my head around it. I am sure I am making it seem harder than it is. Reckon its one of those that once you get going, it will start to slot into place.
Kind regards,
Elaine
ps had lots of interested parties for my company. Thats good Only met with one who is local to myself and they have now changed their minds as there is bookkeeping involved and they do not have a bookkeeper on site. Oh bummer.He/she couldve outsourced the bookkeeping element. So whats next with that then - you had a few approaches via BKN didnt you.
Happy to help if I can further. Although might not be around much on BKN Thursday/Friday due to client meetings.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
