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5 Best VAT Accounting Software in 2024

5 Best VAT Accounting Softwares

Octa Accountants

Reading Time

7 Min Read

Publish Date

Jan 17, 2024

Blog Category

Accounting Tips

The adoption of VAT accounting softwares presents a myriad of advantages for business owners, alleviating common challenges associated with traditional processes. 

They not only minimises the burden of dealing with voluminous paperwork but also enhances accuracy by diminishing the likelihood of errors that often accompany manual record-keeping.

Here, we have compiled a list of the best VAT accounting softwares that you can use for your accounting operations in 2024.

The adoption of VAT accounting softwares presents a myriad of advantages for business owners, alleviating common challenges associated with traditional processes. One notable benefit is the significant reduction in paperwork, a perennial source of dread for businesses. VAT software facilitates the transition to a digital paper trail, where all actions, invoices, reports, and documents are meticulously recorded. This not only minimises the burden of dealing with voluminous paperwork but also enhances accuracy by diminishing the likelihood of errors that often accompany manual record-keeping. Here, we have compiled a list of the best VAT accounting softwares that you can use for your accounting operations in 2024.

5 Best VAT Accounting Softwares

What is VAT?

Value Added Tax (VAT) operates on the principle of consumption rather than income. In contrast to a progressive income tax that imposes higher taxes on the affluent, VAT is uniformly applied to every purchase. Over 160 countries, notably prevalent in the European Union (EU), employ the VAT system. Despite its widespread use, the approach is not devoid of controversy.

The VAT is levied on goods and services at each stage of the supply chain where value is added, from initial production to the point of sale. The user’s VAT payment is calculated based on the product’s cost, minus any previously taxed material costs at earlier stages of production.

Why invest in VAT softwares?

VAT accounting softwares ensures seamless compliance with regulations, a critical aspect given the complexities of VAT and tax rules. By offering monthly snapshots of VAT records and automating calculations, the software empowers business owners to submit accurate and compliant returns with just a few clicks, mitigating the risks associated with human error.

The real-time data provided by VAT software is invaluable, allowing business owners to assess their fiscal standing at any point in the financial year. This access to up-to-date tax data facilitates better-informed decision-making, positioning businesses strategically and providing a competitive edge in the dynamic market landscape.

1) QuickBooks Online
Most Customisable Accounting Solution

QuickBooks Accounting Software

The robust accounting programme QuickBooks Enterprise was created especially for medium- to large-sized organisations. It provides a wide range of advantages that meet the particular requirements of these organisations. Scalability is among its main benefits. QuickBooks Enterprise can handle the growing data volume as firms expand, enabling smooth expansion without the need to move to another software programme. That is why even medium-sized companies should adopt accounting software as soon as possible!

Features of QuickBooks Onine:

1) Targeted at Small to Medium-sized businesses: Geared for small-sized organisations, QuickBooks Online serves as efficient vat accounting software designed to simplify financial management for business owners. 

2) User-Friendly Design: With a user-friendly interface, the platform empowers business owners to make informed decisions about their finances effortlessly. (Refer to our guide on using QuickBooks Online.)

3) Expense Management: QuickBooks Online streamlines expense management by arranging bills, tracking mileage, handling receipts, and managing payments.

4) Multi-User Accessibility: It facilitates collaborative work with simultaneous access for multiple users, promoting shared financial insights.

5) Payroll Control: The platform offers payroll control features, ensuring efficient management of employee compensation.

6) Analytical Reporting: Robust reporting capabilities allow users to analyze financial aspects and make data-driven decisions.

7) Starting Price: QuickBooks Online is available at a starting price of $69 per year, making it an accessible and cost-effective solution for small businesses.

2) Sage Intacct
Best QuickBooks Alternative

Sage 50 Cloud Accounting Software

Sage Intacct, a cloud-based financial management system, is another one of the best VAT accounting softwares on our list. It is recognised for its extensive and scalable capabilities that support organisations in streamlining their financial processes. It is a member of the Sage Business Cloud family of products. Businesses may automate and simplify their fundamental accounting procedures using Sage Intacct, including cash management, accounts payable, accounts receivable, general ledger, and financial reporting. 

Features of Sage Intacct:

1) Top VAT Accounting Software: With an impressive 4.7 rating in the Champions category, Sage Accounting bills itself as a top VAT accounting software provider.

2) Target Audience: Sage Accounting, the greatest vat accounting software for payroll and account tax filing, was created especially for small and medium-sized businesses.

3) Cash Flow Management: Sage Accounting is known for its effectiveness in this area, helping companies to keep their financial liquidity at the highest level.

4) Cost-Reduction: The programme is a cost-effective option for businesses because it is made with the intention of cutting costs, especially when it comes to filing taxes.

5) Data management and security: Sage Accounting supports businesses in securely preserving important data while placing a strong emphasis on user security.

6) Collaboration and Communication: The programme makes it easier for people to collaborate and communicate more effectively throughout.

3) Zoho Books
Best Value For Money

Zoho Books Accounting Software

Zoho Books is the small business accounting component of Zoho’s productivity circumstances. Accounting data can be tightly integrated with a variety of other applications and functions, including  CRM, customer support, and email. In traditional bookkeeping categories (sales and purchases, time and project tracking, and inventory management), Zoho Books’ usability, versatility, and depth match, if not exceed, what competitors provide.

Features of Zoho Books:

1) VAT Compliance: Zoho Books is accounting software that complies with VAT laws, making sure businesses follow tax laws without difficulty.

2) Extensive Features: The software provides a number of features, such as the ability to manage receipts, maintain inventory, process returns, retrieve previous transactions, handle multiple users, and generate comprehensive reports.

3) User-Friendly Design: A modern and user-friendly interface is a top priority for Zoho Books, which makes it easy for a wide range of users to browse and make efficient use of its capabilities.

4) Continuous Development: As a reflection of its dedication to remaining up to date and user-responsive, the platform is constantly being enhanced to improve the user experience and boost site traffic.

5) Starting Price: Zoho Books is accessible at a starting price of $10 per organisation per month, billed annually, making it a cost-effective choice for growing businesses.

4) TrulySmall Accounting
Best For Small Businesses

TrulySmall Accounting Software

Under Kashoo, the business that created the long-used Kashoo Classic, Truly Small Accounting was established. It must be remembered that this particular system initially only promotes the management of transactions and contacts, invoices, and bills. Businesses showed interest in this system because it was straightforward, reasonably priced, easy to use, and took a unique approach to accounting at a time when so many of its rivals were moving in the opposite way and providing more features and services.

Features of TrulySmall Accounting:

1) Next-Generation Accounting Software: Positioned as the next generation of online accounting software, TrulySmall Accounting earns a notable 4.5 rating and is categorised as Emergents.

2) Target Audience: Tailored for small businesses, TrulySmall Accounting stands out as a simple and fast business accounting solution, offering user-friendly features without requiring extensive accounting background.

3) Invoicing: TrulySmall Accounting allows users to create aesthetically pleasing invoices to enhance the professional image of their business.

4) Expense Tracking: The software includes robust expense tracking features, aiding businesses in managing their financial outflows effectively.

5) Inventory Management: TrulySmall Accounting facilitates inventory management, ensuring businesses can monitor and control their stock efficiently.

5) FreshBooks
Best For Sole-Traders

FreshBooks Accounting Software

FreshBooks is a feature-rich, double-entry accounting solution with a user-friendly interface. It is simple to use for inexperienced bookkeepers and covers all business functions, including payroll. FreshBooks allows you more accounting customizations, including transferring, receiving, printing, and collecting invoices. It also handles basic accountancy requirements and makes it easier for service-based firms to issue proposals, track time on projects, and collect payments. Aside from its main plans, it also provides a customised plan with specific costs for enterprises with specific requirements. 

Features of FreshBooks:

1) Cloud Accounting Software: With an astounding 4.7 rating, FreshBooks markets itself as cloud accounting software that makes billing simple and effective.

2) User-Friendly Design: With an emphasis on ease of use, FreshBooks seeks to make accounting chores simple, quick, and safe for users.

3) Invoicing:  Users may rapidly start invoicing with FreshBooks, which expedites the process of delivering bills to clients.

4) Time monitoring: With the software’s time tracking tools, users may effectively monitor and manage their time.

5) Expense Capture: FreshBooks makes it easier for users to keep track of their out-of-pocket spending by facilitating the capture of costs.

6)Focus on the Customer: FreshBooks upholds a long-standing heritage of offering exceptional customer service, knowing that people go into business to follow their passion and serve

How can Octa Accountants can help you with accounting?

Lastly, it should be noted that each name mentioned in our list of best VAT accounting softwares—QuickBooks, Sage Accounting, ProfitBooks, FreshBooks, and QuickBooks Online—brings special advantages to the table and can be tailored to meet a variety of business requirements. These systems provide a number of features that enable organisations of all sizes to streamline financial processes, be it VAT compliance, cost-effective solutions, or user-friendly interfaces. Take into account the unique needs and preferences of your company as you investigate your options. Regardless of your preference for cost, sophisticated features, or simplicity, the correct accounting software may make a big difference in your company’s overall performance and operational effectiveness.

But if you’re unsure if you can handle the accounting for your business or do not have enough time to manage it, then consider hiring professional accountants from Octa Accountants. We can help you with all your administrative and accounting needs. Schedule a FREE meeting with us to get rid of your accounting burden.

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