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System set up

Sometimes the tax authority or the CPA says your accounting system is not sufficient to present your tax base and financial statement.

In this case you might be required to completely restore the whole bookkeeping.

We are here to help out with this situation, our experts review your system, make recommendations and fix the complete accounting and taxation structure.

We launch the new system and for a definite period, or upon request even longer, run it for you. After that we hand it back to you.

Here we outline some weaknesses which can be the sign of something not working properly.

(i) Contract

- in case of outsourcing accounting you have no contract on it at all.

Risk: lack of liability and compensation

(ii) Petty Cash

- in case of outsourcing the bookkeeper is managing your petty cash report involving all cash disbursements and deposits. You have no information on money must have been cash in hand except for the end of the year.

- no physical counting at all

- the balance of the loan from the owners is continuously increasing

Risk: VAT difference, fraudulence, taxation proceedings

(iii) Bank

- in case of outsourcing the bookkeeper has full access to your e-bank for remitting the taxes

Risk: uncontrolled banking transactions

(iv) Registering incoming invoices

- there is no incoming invoice register system at your company. In case of outsourcing there is no feedback between the accounting system and the incoming invoices.

Risk: incomplete invoice registry

(v) Advance payment to employees, prepaid wages and salaries, daily allowances

- there is no up-to-date registry on the advance payments

Risk: embezzlement

(vi) Fixed assets

- activation and accounting of the depreciation costs of fixed assets purchased once a year mainly at the balance sheet date.

Risk: delay in reporting towards authorities, parent company and financial institutions

(vii) Inventories

- reconciliation of the value inventory purchased between the general and the sub-ledgers.

Risk: P&L problems, valuation problem of material costs and purchasing value of goods sold

(viii) Access to the NTCA personal account

- in case of outsourcing you as a leader of the company have no access to the NTCA personal account to check your company taxation status and download important information

Risk: lack of taxation information

(ix) Penalties, interests and notices from the tax authority

- if your company repeatedly pressured by notices and penalties to submit tax returns and financial statements

Risk: suspension or deletion of your VAT number

(x) Intra-Community (EU) supply

- goods are transported by the supplier to another Member State and those documentations are missing or incomplete

- your company is often required by the tax authority to review VAT returns because of discrepancies in the recapitulative statement submitted

Risk: erratic classification of place of taxable goods in the case of triangular and chain transactions

(xi) Service providing to third country buyer

- there is no sufficient information if the third country buyer is a taxable person or not regarding the VAT law

Risk: VAT problems

(xii) Reporting

- you do not receive reports periodically (monthly, quarterly) on your company revenues and costs and expenditures

- you do not receive information about the accounts receivable and payable

Risk: improper business decisions, no chance to correct the discrepancies among AR and AP.

If any of the problems listed above sounds familiar to you, do not hesitate to contact us.