Why are Futrli’s VAT / GST calculations different?
Incredibly, every other cash flow forecasting tool in the market doesn’t do this. They either rely on you to enter this information, forecast VAT / GST based upon previous VAT / GST amounts, which is frankly dangerous, or don’t take into consideration any current VAT / GST liability.
This is why our prediction software is not the same as traditional forecasting software.
How does Futrli calculate VAT / GST?
Futrli uses real accounting rules to calculate VAT / GST from transactions in the past and the future, highlighting both your actual and projected liability clearly in the predicted cash chart and in the balance sheet in your financial section. Those payments are some of the biggest you can make, and can hurt you if they are unexpected.
Setting the VAT / GST settings
In the Predictions tab within Futrli, head into a section of the chart of accounts (so for example, Sales). You'll see an option Open Assistant. Click into this, then 'Settings'.
You should only need to do this once, unless you switch schemes for some reason.
This is where you choose whether you are on an accrual VAT / GST scheme or cash VAT scheme.
How often are your VAT / GST periods?
What's the default VAT / GST rate on your sales/purchases? We have this here so any predictions you create a pre-filled for the majority of cases. You can override this of course in any prediction modal if you're buying food for instance with 0% VAT (UK).
Which is your VAT / GST control account in your Current Liabilities account category?
What's the month-end of your current VAT / GST period? The repeating cycle from (2) will continue on from this.
When do you pay VAT / GST after your period end? In the UK for instance it's by the 7th of the following month (which is why we default it to 37 days).
Where you can see your VAT / GST impacts
VAT / GST is calculated accurately using a combination of your actual and predicted data.
VAT / GST payment predicted amounts for your next payment are in a tile at the top of the Balance Sheet, as well as the predicted cash in bank amount on that date.
VAT / GST payments are separate rows, highlighted yellow in the Balance Sheet under your Bank Account and VAT / GST liability accounts.
Deferred VAT / GST
For various reasons, Covid-19 being the primary one today, deferring VAT / GST is something that many businesses have done.
To defer VAT / GST, head into the Predictions section of Futrli, then into the Balance Sheet. Enter the amount you're deferring and when it will be paid - Futrli will handle the rest.
