To make a company more competitive in the market, prevent divergences, and make it regularized in the face of current legislation, it is essential to carry out a tax audit. It allows for the healthier development of organizations, regardless of size and segment.
Some companies still ignore this tool, not because they don’t understand how to apply it efficiently but because it is necessary to follow steps and comply with some rules. Not an easy task, especially for people who do not have technical knowledge in the field of auditing.
The tax audit is the process that aims to make a diagnosis of the tax situation of the company. It allows the entrepreneur to see internal processes more clearly, pointing out inconsistencies that can cause serious damage in the medium and long term.
It is to pass a fine comb in the tax part and to know if everything is by the current norms. In other words, understand if all taxes are being calculated and paid correctly.
The importance of tax audit
The tax audit guarantees transparency and security for companies and allows the manager to have greater control of internal processes involving the financial part.
Obtaining this information, decision-making becomes safer and makes business more assertive. Another important factor of the tax audit is the monitoring that avoids late payments.
Another interesting benefit of tax auditing is the possibility of recovering amounts originating from taxes paid. The legislation allows several cases of recoverability of taxes and most entrepreneurs do not know this.
They end up paying more taxes than they should and simply miss out on the possibility of recovering part of the amounts. Over time, this failure can have significant impacts on the company’s profitability and financial health.
With the tax audit, it is possible to identify whether taxes were unduly paid, or whether there are tax credits to be claimed or offset by the organization.
How does it work?
Some companies have internal audit departments with professionals hired for this purpose. This is more common to be found in large business organizations. In most cases, the work is done by an independent service provider that already has qualified accounting professionals for the service.
Thus, the auditor requests all documents related to the analyzed period and related to the calculation and payment of taxes.
From then on, it checks for possible failures that could put the company in the crosshairs of the supervisory bodies. Or even mistakes that can make you pay more taxes than necessary.
A tax audit is a valuable tool for verifying a company’s compliance with tax obligations. The legislation that regulates the verification, payment, and submission of information to inspection bodies is extremely broad and complex and changes with some frequency.
Therefore, having a tool that helps the entrepreneur to be up to date with these legal determinations is essential to avoid fines, interest for late payment, blocking of certificates, and other penalties.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.