Preparing monthly tax returns are often dreaded as the thought of pulling backup, reconciling transactions, and preparing reports is time consuming and takes a lot of effort. Microsoft Dynamics GP has a Value-Added Tax (VAT) Daybook tool that will prepare the detailed and summarized reports needed for tax filings.
VAT is the taxes on goods and services used throughout various countries. A VAT Report will produce a summarized tax report that can be used to remit taxes. It will summarize the total taxes charged on sales and total taxes paid to vendors. It will also produce a finalized tax return form used to remit.
Traditionally, users use the general ledger and/or trial balances to remit taxes. However, with the VAT Daybook, it can now automatically produce the report without manual updates/manipulations to prepare a tax return report.
The advantage of using a VAT daybook is that it will capture any transactions posted to prior periods that were not remitted in the tax return. It will eliminate reporting errors when a user reports using the general ledger.
This function also allows a user to review the tax return before submitting. The draft and finalized reports are easy to follow and for readers that need to review before submitting, the reports generated have a systematic flow and a reader does not need to flip back and forth between pages to find a trail of where figures are coming from.
The VAT reports generated will provide all the sufficient details and backup needed to remit taxes. This tool will definitely save a user’s time when preparing the monthly tax returns. It will also allow for accurate reporting without the hassle of manual preparations. What normally takes hours to prepare, the VAT Daybook function is an easy tool to use when preparing tax filings and it only requires a couple of clicks to generate all the reports needed.