Tips to avoid mistakes in Tax Reconciliation
You may already be aware that the errors of the tax reconciliation in your company can be the source of many administrative problems. Poor accounting management can lead to unexpected costs and penalties.
If every month, quarter or year you find that there are invoices that were not declared, data that were wrongly recorded, or there are discrepancies between your taxation and your accounting, your business has a problem that should be solved as soon as possible and Conciliac may be the solution.
Types of errors in Tax Reconciliation
An error in the tax reconciliation that is often committed, is the declarations of the Value Added Tax. Regardless of the country you are in, you will have to pay taxes such as Value Added Tax, according to the tax regulations of your country.
The purchase or sale of numerous products and services is subject to this tax, which is a percentage of their price. You must periodically declare and pay these taxes, so your accounting must be accurate so that there are no accounting mismatches.
However, when preparing tax returns, mistakes can often occur. For example: it may happen that the declared data may not correspond to the actual income or expense invoices, or that later these operations differ from the records and statements in your bank account and credit cards.
The same can happen with corporate fees, income taxes, or corporation taxes. If the accounting data you have is not accurate, or you make the wrong declarations because your business accounting is in chaos, then inspections, audits and subsequent sanctions may occur.
What should you take into account to avoid making mistakes in the tax reconciliation?
Tax reconciliation is not only important to carry out correct administrative management and pay the corresponding tax. It is also essential to make a good forecast of expenses, since if you are not very clear how many taxes you should pay to the administration, you will have an inaccurate and imprecise view of your treasury. Maybe you even make bad decisions derived from this, or take operational risks that affect the financial health of your business.
That is why it is vital to introduce automation in the tax and accounting reconciliation of your business. To avoid continuing to risk preparing tax returns without having an accurate, efficient and consistent accounting management with real data. Well, it was already clear the risk that the Accounting Department assumes if it cannot ensure that the data is correct.
You need to address this problem with a reconciliation solution that gives you clarity, transparency, and accuracy in your data. That allows you to file your taxes with the peace of mind of knowing that your records are correct and that even, in case of inspection, you can respond safely and quickly.
Conciliac is the automation solution for every kind of data reconciliation scenario. Discover how it works scheduling a meeting with us now.