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Why do a tax audit?

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tax audit

The main objective of tax auditing for taxes for independent contractors is to analyze whether all tax obligations are being correctly followed by the company. In a simple and direct way, it can be said that the tax audit will provide the entrepreneur and directors with an opinion and a position on the practices adopted by the company. The purpose of the tax audit is to examine and evaluate the efficiency and effectiveness of the procedures and controls adopted for the operation, payment and recovery of taxes and any other tax and / or tax burden that affects the company’s operations.

In this way, the tax audit serves to assure interested people that the company is in compliance and to analyze if there are better ways or practices – both for the protection of the company against the tax authorities, and for the best tax planning.

Why should my company perform a tax audit?

In the competitive business world, in which each company seeks in some way to obtain differentials in order to succeed in its business and achieve the expected results, the information generated by accounting is a possibility to find differentiation and offers innovative and impactful strategies on a daily basis your company. In this sense, companies, of any size or segment, should seek the assistance of the audit, in order to identify possible contingencies in the accounting records that are making business continuity and growth unfeasible.

The 4 main advantages of performing a tax audit

Internal control

Tax auditing should, above all, be seen as an internal control tool. It is the manager’s responsibility to have awareness and control of the company’s tax and tax obligations, and only through auditing, will he be really able to answer for the security and protection of the business – that is, if the company is in tax compliance.

Tax recovery

Due to carelessness in tax management or lack of information, many companies end up paying more taxes than they should. As mentioned in the previous topic, about 95% of companies pay taxes improperly. However, these taxes paid in error can be recovered.

Tax risks

With the analysis of the audit, the possibility of consultation and a consistent and professional planning, you eliminate from your company the vulnerability to the risks of tax liabilities, which can cause inconvenience and prevent the continuity of the company.

Control of legal processes

The company will be able to have a better knowledge of the progress of legal processes and understand how to deal with these processes so that they are properly handled and no longer cause problems. In summary, tax auditing is one of the main ways to organize your company’s planning. If you want to keep yourself up to date on the main tools that can help you, contact professional consultants.

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