Tax Planning For The Digital Age: Some Suggestions
by Maria Steuerberaterin Maria Geier SteuerberaterinWhat steps can you take to
provide the groundwork for a fully digitalized tax system?
Be in charge of your information
of Steuerberatung Digital
You need to be able to check the
integrity of data drawn from many sources, such as accounting systems and
enterprise resource planning (ERPs), and be so confident in its accuracy that
you can utilize it to meet multiple tax requirements. To reach this point, it
is necessary to examine methods that enable early detection and correction of
problems. Anomaly and error detection may help you spot these problems by
looking for unusual behavior in the system. You may either utilize the
predefined tests, which could look for things like duplicate transactions or
unexpected VAT rates, or you can provide your search criteria. You'll be able
to set your criteria and take the necessary steps to fix things, such as
finding VAT on tax codes where there shouldn't be any or highlighting suppliers
that have been incorrectly treated for VAT. When errors are automatically
detected, it boosts trust in the numbers and reduces time spent on review and
prep.
Better precision is possible via automation.
Consider automating your
computations to provide higher precision for digital audits. If your company
employs complicated VAT procedures, such as VAT groups or the partial exemption
standard or special method, this may help lessen the likelihood of making a
mistake. This is not only useful for calculating amounts, but also for applying
adjustments, blocking/excluding transactions, and creating reports.
Put out your efforts with the expectation of having to demonstrate your
success.
Companies will have to show that
they have taken all precautions to ensure their calculations are accurate as
enforcement of compliance regulations. You may need to trace VAT down to
individual transactions, which is a lot like trying to find a single needle in
a large stack of paper. In contrast, a digital tax engine can time stamp each
step of the VAT process, documenting the location and time of any edits made
along the way.
Useful information may be found in your tax records.
Personal tax data analysis may
provide a plethora of information for Steuerberatung
Digital. It is possible to display past and present return periods side by
side. Look at the numbers from different time frames. To foretell your
financial obligations, examine trends. Determine business strategies. Use gap
analysis to see whether you are claiming all the tax breaks to which you are
eligible. About three-quarters of participants in an ICAEW webinar said they
would use tax analytics if they could start using it this year.
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Created on Sep 21st 2022 00:31. Viewed 123 times.