How to reconcile your VAT in 2 minutes

Copyright 2006 Warrington Web Works

Reconciling your VAT is one of the easiest tasks using Sage Software and yet so many small businesses seem to struggle with the task.

It's the end of the VAT quarter and panic sets in because they have to check lots of reports and they aren't entirely sure what they are doing.

When introduced to a new client I have always asked the question "How long does it take to reconcile your VAT return?" The answer's I get back vary from a couple of hours to a couple of days!

The answer I should be hearing is no more than a couple of minutes. When accounts staff are presented with this, and they usually go on the offensive, stating that it takes them ages to go through all the reports and check them. Twaddle!

Their response tells me instantly that they don't fully understand the software they're using. And this doesn't just apply to Sage Software users either.

Every time a transaction is entered into the Accounts it is automatically collected in the VAT Control Accounts, In the case of Sage Software, Vat on purchases is collected in nominal code 2201 and VAT on Sales is collected in nominal code 2200.

So let