I like to refer to this saying, “Turnover is vanity, profit is sanity and cashflow is reality.”  

Because let’s face it, what keeps you in business is a positive cashflow. Especially the world we find ourselves in today, a global pandemic, economic lockdowns, and riots. Cashflow is more important today than ever before.

So as a Senior Manager or Executive, we need to ensure that the business is driven to focus on cashflow from Procurement to Sales and Marketing, to the Tax Department. Cashflow should be a culture within your organisation.

Let’s look at VAT as an example and how this can help you.

Did you know? Up to 50% of VAT inputs are captured late and only claimed in subsequent VAT periods. So, when submitting your VAT201 you are entitled to claim those inputs even if captured late in your ERP system.

This is where VATSolve has been innovative in their approach to help large organisation to view subsequent VAT periods with full audit trails and fully reconciled back to the General ledger that automatically excludes them from the subsequent VAT periods. The result, this can improve your cashflow significantly which also means it increases your profits. Why lose money when you can make money?

If you have any questions, let me know in the comments below and until next time – keep the cash flowing!

Alan Sutton

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