Essential Guiding Tips For Small Business Tax And Auditing
From the recent tax
and audit trends, it is clear that most of the small and medium companies are
not complying with the requirements set by the tax authorities. As a result,
the tax authorities are experiencing shortfalls in the annual revenues. To address this problem, the tax authorities
are forced to conduct frequent audits for the small businesses that don't seem
to comply with the taxation rules. It is
important to seek the help of the leading transaction tax consulting group to
identify and resolve matters that could result in unnecessary audits.
Why Your Business Is
Likely To Be Audited
There are two major reasons why your company is likely to be
audited. One of them is the results of
any past evaluation of your business by the tax authorities. With a reliable
tax expert on your side, it is quite easy to identify the issues that led to
the audit and address them immediately.
You can reduce the chances of an audit significantly once you address
Issues on the current tax returns could also lead to audits.
Although you may not change the tax reports that you have already submitted to
the tax authorities, you should notice any major issues and resolve them
immediately. Know more about tax at https://en.wikipedia.org/wiki/Tax.
Planning For The Audit
The odds of being audited cannot be eliminated even when
everything runs smoothly. You should always be prepared for it by having a competent
team of experts and systems on your side.
To be on the safe side during an audit, you should also have a competent
professional to represent your company during the activity. The more
knowledgeable and experienced the tax professional is, the higher the chances
of resolving possible issues that might arise during the audit.
The accounts payable audit firms representative
is responsible to providing all the relevant documents and negotiating the terms
of the exercise if the need arises. The team of accountants should also be
furnished with all the information they require to meet your tax
obligations. Providing all the relevant
information in advance also minimizes inconveniences, time wastage and delays.
What Happens During The Audit?
Each company should
keep a record for all the transaction that takes place. To ensure clear records of all the daily
transactions, it is advisable to hire competent accountants to handle the
task. You are likely to be asked to
provide evidence of a specific transaction during an audit.
You need to be
careful and keep a few things in mind when providing the evidence of certain
transactions. It is advisable to provide only the records that the auditing
team ask for. Providing more that you are requested might end up bringing up
new issues that may be difficult to solve. An experienced tax expert can
provide the necessary information and respond to queries effectively. With
this, you can effectively solve tax and auditing issues.