I can see from other Canvass ideas that Kashflow monitors your turnover and gives a warning when you exceed the VAT registration threshold (although I could not see that the help files mention this or how it works).
I have two concerns over this:
a) Whilst reports allow me to monitor my total annual turnover, there are various bits of turnover which do not count towards the VAT registration threshold. There seems to be no way to differentiate between these. I am no VAT expert, but these appear to be (mainly):
There is also the issue of purchases (eg Google advertising and Google Translate) which are not charged VAT at source, and need to be added to your turnover for working out the VAT registration threshold.
b) What is the best method of entering purchases whilst I am not VAT registered in order to keep track of the VAT paid on those invoices, in case I do exceed the registration threshold and therefore want to claim input VAT on stock in hand and services (eg where I have made a one off payment for 2 years web hosting)?
I tried entering it as input VAT, but then that does not appear in my profit & loss account (presumably because I am not VAT registered).
Simply entering the price of goods purchased as the invoiced price + 20% VAT (say) does not work properly because of rounding etc which meand the invoices on Kashflow need an adjustment to match the actual invoice received.