In this post we review all the tasks related to accounting and tax management that must be kept under control.
Learn the main points for carrying out a checklist of these tasks in the recording of the webinar on accounting closing 2019.
For professionals who are dedicated to advising business owners and professionals in managing the accounting and taxation of their business, it is the month in which we are going to close the operations of the year, and we have to start calculating both the result of this year and the tax that must be paid for the development of the activity .
In the case of individuals, we must calculate the income from the economic activity to transfer it to the personal income tax declaration before June 30 , and in the case of the rest ghana email list of the business structures (companies, cooperatives, etc.) we must calculate the Corporate Tax that we will settle before July 25. In both cases, the way to calculate the result is the same: we calculate the income obtained during the year and subtract the expenses necessary to reach said income .
Checklist for accounting and tax closing
For many business owners and professionals, accounting is nothing more than a legal obligation that they must carry out. But accounting, if analyzed correctly, can provide us with very valuable data for its management .
By analyzing the data provided by accounting, we can analyze the “health” of the company and make diagnoses about its future direction, as well as modify those factors that are necessary to obtain better results in the future .
Up-to-date accounting can help you make quick decisions about customers, suppliers, creditors, financing, investments, etc.
Many advisors recommend preparing a checklist of the operations to be carried out before proceeding to the accounting and tax closing of the financial year.
This list must take into account important operations to find the accounting result, such as :
Amortization of the company's fixed assets .
Transactions with related parties or the reclassification of debts, and operations that will be used to calculate the final tax to be paid (and in some cases, to reduce it), such as leasing and renting operations .
Deductibility of expenses for bad commercial credits
The offsetting of negative tax bases from previous years or compensation and equalisation reserves.
How to get a true image and save on your tax bill
Some of these operations will be very useful for the business accounting to reflect what is known in accounting as the "true image", that is, a snapshot of the state of the business at the end of the year which , together with the result, is what gives us a vision of the performance during the year, helping us to project and model our future actions .
Thus, it is very important to correctly depreciate assets to reflect the current value of use of fixed assets , or to correctly regularize stocks , which helps us to predict the dates on which we must place orders , to avoid a lack of stock that harms our sales, and therefore our market position ; or an excess of stock that forces us to take up unnecessary storage space .
Other operations from the checklist can help us reduce the tax bill , such as the capitalization reserve, which can reduce the tax base by 10% of the increase in equity for the year , or the equalization reserve, which reduces the tax base by a maximum of 10% of its amount. These reserves , which began to be applied in 2015, are unknown to most companies and can help reduce the tax bill for the year.