The accounting and taxation within an organisation are closely linked: the correct accounting of costs and revenue, etc. allows us to also improve the taxation management of the company. We are offering you 4 simple tips to help you better manage the accounting and taxation of your business.
Ensure that you have correctly accounted all your expenses
Some expenses can be unintentionally overlooked, such as business travel expenses, food expenses, small amounts paid in cash, etc. All expenses are important, so it is essential to be strict in this matter.
It is also very important to check that every entry is made into the corresponding account, otherwise, imbalances or other problems can occur, for example when calculating the taxable base for corporation tax or deductible VAT amounts.
Looking after your files
In order to maintain clear accounts, the filing of invoices, receipts and other sales checks must be well-ordered, easy to access and up to date. This will help to ensure that no expense is overlooked and facilitates access to all the necessary documentation at any given moment. Subsequently, financial documents will also have to be conserved over a period of years for tax purposes. For example, receipts corresponding to expenses for VAT-deductible items must be available for presentation to the Tax Authorities during a minimum of 4 years following the current year. It is worth noting that if invoices are digitalised and officially approved, this task is made considerably simpler.
Be careful with non-deductible VAT
You have to be sure you are familiar with instances of VAT-deductible and VAT-non-deductible; otherwise this can lead to errors. In the same way, an expense that may be a priori deductible, may not be, if you do not have a receipt, or if it is not the correct receipt. For example, basic sales checks or simplified invoices are not valid.
Caution if you have doubts
At times, in spite of understanding the theory and having everything in order and well accounted for, in practice doubts can occur. In these cases, it is best to refer to an advisor or consultant, who can guide us along the steps to be taken. Nevertheless, we should always remember to be cautious.