Manage VAT across branches using Online VAT Accounting Software

What is VAT?

 VAT  stands for Value Added Tax. It is a form of tax that is charged on the domestic consumption of goods and services except for that   are zero rated such as food, medicines etc and on the goods and services that are classified as “Exempted” broadly on exports. The tax is levied at every stage from procurement of raw material, production and till distribution chain that is up to sales. The amount of VAT the user pays is on the cost of the product, less the tax that has already been paid during the production cycle. This form of taxation (VAT) ensures there is no double taxation of the same product or services.Manage VAT across branches using Online VAT Accounting Software is discussed below.

Significance of VAT in UAE

Standard VAT rate of 5% will apply to goods and services unless specifically declared as zero rated or exempted.It will be a milestone for UAE as it will generate revenues for development of infrastructure and economic growth of the country. It is estimated that with the introduction of the new form of taxation “Value Added Tax” the economy may raise its annual revenues by Dh 12 billion in the first year of implementation of the VAT system. Gulf Cooperation Council (GCC) decided upon the implementation of VAT system as being one of the steps to diversify revenues due to the fall in oil prices. Tax reform was top priority in UAE succumb to the fall in oil prices and revenues. This fall in oil prices also affected real estate industry impacting the economic growth of the country.

Business Readiness for VAT

Any business that is required to be VAT registered and charge VAT from 1 January 2018 must register for VAT purposes, in the manner specified by the Federal Tax authority, prior to that date. In order to determine which businesses must be VAT registered, a VAT registration threshold shall apply for all UAE-resident businesses:

• A business must register for VAT if they make taxable supplies or imports that exceeds the mandatory registration threshold of AED 375,000.
• A business may choose to register for VAT voluntarily if their taxable supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.
• A person may register voluntarily if their expenses exceed the voluntary registration threshold (e.g. start-up businesses with no turnover). Exempt supplies and supplies outside the scope of VAT are not used in calculating the VAT registration thresholds.

However, for the ease of the business, supplier may not be registered if the business does not make any supplies which are eligible for 5% tax.  If exception from registration is granted, then you will not submit regular tax returns and you will not be able to recover input tax incurred.

How should businesses prepare for VAT implementation?

• Start maintaining your financial records in orderly manner;
• Businesses will now need to develop more efficient processes;
• Cost cutting on all fronts that you feel are unnecessary;
• Restructure your business to incorporate new talent who are able to multi task;
• Incorporate a robust accounting system that has VAT module;
• Get professional help for right ways to implement systems;
• Hire professional CA firms who could do the groundwork or leg work for your business for implementation;
• Assess capability of existing systems;
• Identify VAT implementation strategy;
• Identify contracts that need a VAT action;
• Identify inter-company transactions;
• Undertake training / awareness.
• Choosing right Online VAT Accounting Software for the ease of the business.

Manage VAT across branches using Online VAT Accounting Software

One of the key steps in being VAT compliant is choosing the right VAT software matching all your business requirements. If the company has multiple branches in the country, the software chosen should able to synchronize among all the branches for smooth operation of the business.

Reach Accountant Online VAT Accounting software is the perfect software to cater all your business needs seamlessly.Unlike a traditional Accounting software, Reach is accessible online like your gmail or facebook account. so, all your employees can work using the software at the same time. The software is so deigned that all the employees can work at the same time on the same platform from different branches with the updated data and information of the different branches. Thus sharing one common real time information of the business.

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud accounting software that is easily accessed online and an attractive option for large or small business owners. Companies that use cloud accounting require less initial server infrastructure to store data and don’t require IT staff to maintain or update the cloud accounting system. Get the spectacular benefits of cloud accounting as you seamlessly integrate with the powerhouse

Benefits of cloud accounting:

• Streamline billing and ordering processes
• Capture and store financial data to most accurately model and report on your finances
• Use Chatter to enable more effective collaboration across your organization
• Greater return on investment and real-time, multi-dimensional financial analysis

Benefits Of Online VAT Accounting Software

Online accounting software systems are rapidly evolving, giving business owners the ability to choose how and where they manage their finances. Whether at home or on-the-go, business owners are now able to execute administrative functions such as instantly viewing bank balances, tracking expenses, sending invoices ,supervising the work flow of branches through online VAT Accounting Software thus making business more viable.

There are many advantages of using an online accounting system including:

An online accounting system can help you manage your business by improving your recordkeeping processes and give you the tools you need to analyze business results and make sound financial decisions.

Online Access 24/7

Switching to an online bookkeeping system will mean that the business users will be is able to access business  financial information and reports anytime and anywhere. As long as you have an available internet connection and details of your secure login details you can access your information online meaning you can review your financial standing at any time.

Cost

Cloud accounting is perfect for startups, entrepreneurs and small businesses. There’s no up-front outlay for software, hardware or a dedicated on-site employee. All that is required is some setup to personalise your accounts, upload your financial data and learn how to use it, which is no different than on-site software – and is frequently much easier with online tutorials and videos that help you

User Friendly

Online accounting software is designed to be easy to use.  No more specialised training for use of the software like some desktop based services. After the intial set up and brieft introduction the software is easy to use by all memebers of staff with no specialist training required.

Technical Support

Should any problem occur within the online system, there is no need to worry  because friendly customer service representatives are ready to guide the user  through the technical process or you can contact us and we will guide you through the problem. We can easily log into your account and rectifiy any items which need to be amended.

Efficiency – Transactions only need to be entered once. The software then updates the ledger and financial statements and reports can be generated with ease. Any adjustments or corrections are usually real-time and flow through the reports immediately.

Analysis – Online accounting software packages include a wide variety of standard reports that business owners can use to review the results of operations. For example, income and expense accounts can be reviewed on a monthly basis. Comparisons between the current year and prior year’s figures and percentages can be reviewed.Online accounting packages also give the user the option to write reports or sort data in many ways to assist with company performance review and decision-making.

Security and Accuracy – Software packages include out-of-balance and posting error alerts, backup reminders, and passwords to restrict access.Security is critical for any organisation with large amounts of data, and it’s particularly important for accounting. The obvious advantage to keeping vital and sensitive information on the cloud is removing the human element and the possibility of lost or stolen hardware. People do make mistakes, misplacing their laptops full of important data and losing months of work, and servers can and do fail. Fortunately, cloud services manage backups for you, so you don’t have to worry about losing your data!

Cloud-based accounting also addresses other safety concerns with higher, uniform security standards, automatic redundancies for data and scheduled, seamless security upgrades at no cost to the user. Reach Accounant for example use the same level of encryption that is used by banks, and the data is located in enterprise grade hosting facilities that have biometric systems and onsite security guards. Far better protection that  businesses would employ to protect their information. It really is the safer choice.

Inter Connectivity of Branches: As online accounting software are cloud based company branches have the option of being inter connected with one common real time data of the business such as current stock held, any transaction details which needs to be shared among all the branches instantly any many other details for the growth of the business.

Opportunities

Many types of online accounting software help businesses track trends, losses and profits far better than they could in the past. This may help the business discover new opportunities to improve revenue.

Scalability

One final advantage to cloud-based accounting is its scalability. Whether you’re a small business just starting out, or a huge firm with hundreds of employees, the cloud grows with your business.

Features of Reach VAT Accounting software benefitting UAE Companies, Manage VAT across branches using Online VAT Accounting Software.

Business Intelligence Dashboard:The software has a feature of  providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.

Order Management  :Receive the sales order and convert them in to invoice once ready Order management is all about keeping track of orders and managing the people, processes and partnerships required to fill them. It involves keeping track of the order itself and managing data around the customer and finally intimating the customer about the readiness of then product.`

Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.

Goldsmith Outsourcing: Reach Jewellery software also aids in outsourcing the process to other goldsmiths .The software keeps a track of all the orders that are pending with gold smith with details such as old gold exchange, rate of gold per gram, making charges and wastage and date of receipt.

Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.

Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.

Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any

Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations therefore companies can manage VAT across branches using online VAT accounting software  and avail the below benefits of the software.

• VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

Point Of Sale: Touch and Keyboard billing system.One of the features is the software works even when net is also down.

Barcode and Batches Management: Generates batch codes and barcodes  and reads automatically on a bar code scanner.

Project: Cost Management reflecting cost at every stage of production. Order Management –Used for invoice orders.

Purchases: Purchase Orders/Estimates,Purchase Bills,Purchase Return,Vendor Outstanding Management.

Sales:  Provides with quotation, operational product, Sales invoice and sales returns ,Recurring invoices in one order and customer balance.

Access: Multi-User operation with restriction menus, Auto Back up ,Accounting Period Auto change ,Any Location operation, Easy to handle ,No hard accounting process and buttons, Auto conversion to accounting formats

Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.

Security: There is complete security of data stored in the servers. Data can be accessed and control by creating access restriction. One time password   facilities also ensures a check in the log in to the website.

Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.

No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers

Multi Company:Benefit of handling the business operations from the touch of the smart phone.

Auditor View: Full-fledged Financial reports,Tax reports,VAT reports,read process by auditor, with e-filing options,PF & ESI Reports,Tax Consulting Modules

Mobile Application:Business is just a touch away from you. Easy access through tabs,ipads,iphones,android phones.Click pictures of expense vouchers and attach to expenses.Raise invoices, check cash and bank balances,day to day income and expense and other reports through mobile applicatons.

Business Automation: Business expansion by searching leads suitable for your business profile ,Leads  from mail server, Changing leads to appointments ,converting quotations to invoices.

Addons: E-stores, Google docs, Google calendar  , Project management tools, SMS gateways,

Payment Gateways are few to name.

Tally Import: Import excel files from   tally to Reach software and manage accounts with smooth transitions.

User Friendly: Softwares are designed is such a way that the user will find it easy to operate.

API: The client can integrate the existing software with Reach accounting app,seamlessly.

Scalability: It is a VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers  both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

Pricing of the software: No upfront investment, Low monthly rentals free servers,free routers,LAN ,Network cabling not required,Anti Virus not required, free data back up.