What equipment should i get next?

[Cowseye]

A solution to your harsh light from in-built flash is pop-up diffuser. Cheap and good.

 

[Alan Chan]

its harsh because the flash is small and not diffused. using a flashgun you can either bounce it off ceiling or use more diffuser patterns. if you shoot indoor or portraits alot, then i would suggest a flash, which also works wonders outdoor.

 

[brosteady]

I would prefer to get a flash first.. there are some tricky situations where flash may prove very useful.. besides, ur kit lens is very capable.. don't underestimate it..

yes i agree do not underestimate the power of the kit lens it can last long... get a flash first