Tax regulations, tax boundaries, tax rates and taxable goods; all important parts of the tax world, especially in relation to multi-national charities. There are a range of different taxes applicable to charities, such as dividends received from UK companies before 6 April 2016, to 5% VAT on standard-rate goods and services bought from VAT-registered businesses and even zero rate taxes. Financial reporting through a financial management system is the main way different calculations like this are stored and determined in a convenient manner. However, where multiple currencies and locations are concerned, a basic financial management system may not possess the correct functionality to deal with these calculations.
Just from this snippet, it’s clear there are numerous transactions to track and tax regulations to adhere by for charities.
Completing tasks manually, such as consolidating accounts, is a time-consuming and error prone process which most may find impossible to stay on top of. Additionally, there is the responsibility of executing high levels of accuracy; if books do not balance, more problems throughout the organisation are inevitable.
Through a localised and centralised system, financial reporting, including those which are subject to international taxes and purchasing transactions, can be recorded through one point of entry to avoid the increased risk associated with large volumes of manual data entry. What’s more, with a sophisticated system like PS Financials, multi-currencies can be easily dealt with. With pre-programmed rules, processes can take place automatically, improving efficiencies as a result. Instead of spending time consolidating accounts and manually converting figures from different currencies when dealing with international sites, the automated rules complete this for you enabling the effective and accurate manipulation of data.
With functionality like this, including localised reporting, PS Financials enables international charities to report centrally, through to local level. Individual parts of the charity based in different locations can report on their own figures to gain valuable insights of isolated parts of the organisation. This provides a specific view of how different areas are performing and is an invaluable tool when looking at consistent income vs expenditure. What’s more, a collective report can also be pulled to show full-organisation data for a more complete view of performance, providing a range of vital understandings through a sophisticated system.
To learn more about how PS Financials can help your charity stay on top of mandatory tax regulations, visit www.psfinancials.com/charities