Many entrepreneurs are frightened by the news of a Tax Authority audit, even though the prepared companies have nothing to fear. The check is part of normal operation and chances are it will run smoothly if the papers are in order. In this article, we will summarize how you can prepare for a NAV check in advance.
Ordered papers are the basis
The backbone of the audit is documentation. If the receipts, invoices, contracts and returns are settled and retrievable, the audit is essentially a proof of the existing order. It is therefore worthwhile to maintain the records continuously – and not only on the news of inspection.
- Incoming and outgoing invoices complete, chronological, verifiable.
- Contracts and certificates of performance, which underpin economic events.
- Declarations submitted and their basic data, in a compatible form.
- Bank and cash receiptswhich justify the movement of money.
How to behave under control?
A cooperative, calm attitude always pays off. Hand over the requested documents, answer questions objectively, and if you are unsure about something, ask for time to reconcile. You don't need to know all the details by heart – it's a good idea to involve your accountant, who knows your records and helps you communicate with auditors.
Prevention is the best defense
The most calm inspection is the one that does not need to be specially prepared, because the business works normally. Continuous, professional accounting, meeting deadlines and careful handling of supporting documents are the best safeguards. And an experienced accountant will predict if something is worth changing before it becomes a problem.
The precise course and powers of the tax authority's audits are determined by the current legislation; it is always worth consulting with an expert on a specific matter. If you want your business to be ready for an audit at any time, contact Axia accounting: +36 20 271 8141, axia.konyveloiroda@gmail.com, or contact page.
