Tax audits can happen every year if your company makes above a certain amount of revenue per year. It is inevitable. Tax audits can be very heavy on your business, often delaying administrative tasks for over 2 months. This is why you should ensure your accountants can easily provide auditors the full breakdown of your purchases, sales, inventory and returns/ refunds in the most efficient way. Adding to this the bank register, reconsiliation and undeposited funds register.
Common accounting systems often provide a limited view of your business activities, working in silos and requiring manual entry between each system. For example, your purchasing sotware gathers purchase orders. Your inventory software manages item receipts, stock and deliveries. Dataflows between the two softwares are often either manually entered or exported in excel and imported to the other software.
This system is the source of error the auditors prey on. Any missed transactions between two software opens a door to un-tracked transactions. This leading to errors in tax claims.
Business intelligence solutions/ manual daily verifications can pick up discrepancies between systems but this remedies the symptoms without curing the cause.
The loss of admisintration during the audit period can amount to a high revenue loss and even loss of customers. Customers tend to look for other providers if their orders are not delivered on time.
30% of companies being audited take over a year to get over their audit. This is simply unacceptable. As you know, all audit policies are listed on specialised websites. You can often find 3 to 5 volumes of each audit process. Here is a link to one of the most used audit norm in the world today: IAASB standards. The first volume contains over a thousand pages of detailed information on the process you are expected to follow in every Financial aspect of your business’ administration.
Only a very few companies have the time to read, understand and apply those rules on their various accounting, operations and administrative softwares. This is where NetSuite Cloud ERP brings solutions to every company’s administration.
NetSuite Cloud ERP provides all your company’s processes in a single software, which has been built so that your auditors can easily access your company’s data from a GL, Financial Report and detailed transaction view, at the click of the mouse. NetSuite’s security prevents employees from deleting, replacing or changing any transaction unless explicitly allowed to.
This software is currently trusted by the world’s certified accountants, auditors and companies. Yes, it is a little more expensive than your shelf softwares at first sight, but the savings this software allows you to do in the longrun far outweigh the slightly higher price tag.
As the 2019 year end audit has taken too much time and set too much stress on your business, now is the time to take action and ensure this un necessary loss of time never happens again.
Cloud at work Mauritius is a multi million rupee NetSuite reseller who helps companies secure their CRM, ERP and Bi Under a single trusted system. Why go through the pain of another audit? Contact us today and get equipped with the best your business can get.