How to implement Electronic Tax Audit?

Electronic Tax Audit

When you use the tax management system, you can hire an additional application that automatically connects to the bank of registered products, goods and services, so that, before any invoice is issued, the tax rules are checked automatic to ensure the updating of legislation in real time and correct issuance of the tax document. It is simple, practical and fully accessible. Being an Independent contractor taxes you stay ahead of any unforeseen events, thanks to the tax audit.

Electronic Tax Audit

Electronic tax auditing is undoubtedly a valuable and powerful instrument for tax gain and risk reduction. There are two types of electronic tax audit, which are:

Corrective Electronic Tax Audit, after operations are carried out: this type occurs after invoices are issued, analyzing XML files already issued in search of tax failures to indicate errors and recommend adjustments. It is a good model.

Preventive Electronic Tax Audit, prior to carrying out operations: this type occurs even before the invoice is issued, validating the tax rules with the use of artificial intelligence and allowing the invoice to be issued with 100% security and guarantee of having the correct tax settings.

Why do a tax audit?

First, the tax audit consists of a complete analysis of all the tax obligations of the company in accordance with what is required by the legislation of the business area. The professional or company responsible for the audit seeks to find and correct misfits and errors made. In short, your job will be to point out these flaws and detect possible fraud. Therefore, for the result to be effective, it is necessary for the professional to be free to act independently and autonomously.

Differences between Tax Audit and Accounting Audit

The two audits have actions that focus on two main points: prevention and correction of errors. While the object of the tax audit analysis is to monitor the correct application of tax rules in the different operations that the company performs, the accounting audit focuses on ensuring that accounting practices are properly recording the company’s equity and ensuring that the company’s balance sheet provide accurate data about the business and its prospects.

Tax Recovery

In a tax audit procedure, in the same way that underpaid taxes can be found, it is possible to find overpaid taxes, or taxes that could be credited on purchases and that were not used. In these situations, your company may request the recovery of these taxes, which can be done for up to 5 years. Thus, a good tax audit policy also represents a good savings opportunity for your business. Then explore, within your company, all the benefits of a good tax audit, and pursue your goals in a safe and economical way.