February 6, 2018
The Tax Protection Manual is a collection of useful information & practical tips for healthy business. In the following we update you with the control techniques of the IRS applied on the monthly accounting balance. You need to know the correlations and checks for a correct monthly balance.
The monthly accounting balance reflects all the work done by the accounting financial department in one month.
Based on it you need to do more checks to discover any inconsistencies. You need to know them because the tax controllers know them and, during the tax inspection, carry out these checks to identify any inconsistencies.
Here are 32 correlations and checks for a correct monthly balance sheet:
Verification of the correctness and completeness of the plan of accounts migrated into the information system and its maintenance;
Verification of the processes implemented in the integrated information system, ensuring that all transactions are found in the accounting module and ensuring their maintenance and updating;
In micro-enterprises: checking the amount of total income to see the ceiling for the changeover to corporation tax;
The management software allows automatically the registration and issuance of supporting documents for inventory miscs, invoiced service providers. Monitoring of documents with special regime (automatic numbering, cancellation, reversal, etc.);
The balances of bank loans must be the same as those in the bank’s maturities;
Registration of individualized (analytical) revenues to allow the relationship of sales with purchase invoices (trade) or to carry out an analysis of the conditions of recovery or a check of the consistency of the declared results (manufacturing, services);
Establishanting an exact program for submitting sales through cash registers to the accounting module and daily verification of supporting documents issued by the bank/house register/Z report with recorded income;
Verification of vendor account forms in order to correlate the payment with the acquisition supporting documents and eliminate the risk of purchases without invoices;
Performing a proper inventory, recording the results of the inventory and preparing the file according to the legislation in force;
Debit/credit rolls of account 121- The current result of the year must coincide with the debit rolls of the expense accounts and the credit rolls of the revenue (to which the reverses are added);
The final debtor balance of Class 2 – Accounts of fixed assets (except depreciation and amortization accounts or long-term receivables) must be equal to the value of the entry/reassessment of the fixed assets in the Register of fixed assets;
The final credit balance of class 28 – Depreciation on fixed assets must be equal to the total depreciation of the Fixed Assets Register;
The debtor balance of account 371 – Commodities or the debtor balance of account 301 – Raw materials must correspond to the balance on the management report/balance in the stock balance/stock situation;
Account debtor balance 331/332 – Products/services under execution equal to the credit balance of account 711/712 – Income related to the costs of products/services in progress;
Debit balance of account 345 – Finished products equal to the credit balance of account 711 – Income related to the costs of stocks of products;
The VAT balance in the balance corresponds to the amount on the VAT statement;
Account 421 – Personal salaries due must correspond to the salaries to be paid next month. If wages are paid the current month, then the balance must be zero;
The balances of the social contribution stakes and payroll tax accounts are those of next month and must correspond to the amounts in the tax return D112, if the contributions and income tax are paid on time, of course;
The balances of customer and supplier accounts correspond to the amounts to be collected and paid to suppliers;
Account balance 472 – Pre-registered income in accordance with advance invoices issued and not received. Advance invoices issued and advance storno invoices will be checked. The advance issued must be closed with the advance reversed;
Account 581 – Internal transfers must not have a balance at the end of the month. If it has a balance then one or more cash transactions have not been correctly registered;
Account balance 5121 – The current account at the bank must be in accordance with the balance on the statement of account;
Account balance 5311 – House in lei must be in accordance with the balance on the cash register;
The balance of the accounts in foreign currency must be updated at the end of the month according to the BNR exchange rate on the last day of the month;
Verification of cash advances granted with the balance in the balance of the verification on analytical;
Expenditure accounts must be sold – they must not have a balance. Close with account 121 – Profit and loss;
Income accounts must be sold – they must not have a balance. Close with account 121 – Profit and loss;
The reserve accounts recorded in the accounts must be in relation to the AGA decisions and the legislation in force;
The share capital account shall be checked with the extract from the Trade Register;
The balances of Various Debtors (account 461) are checked with the assignment contracts, decisions of the company’s management, other documents
supporting documents which make up it;
The balances of Diverse Creditors (account 462) are checked with the assignment contracts, decisions of the company’s management, other supporting documents that compose it; check that there are no customer advances wrongly reflected in the accounts with impact in the VAT collected;
Check the closure of VAT accounts deductible with VAT collected and VAT payment/recovery.
Identification of accounting registration errors using verification balances
Accounting errors, according to identification possibilities, are divided into two categories:
A. accounting errors that can be identified by the lack of value equalities within the balance checking the tabular accounts;
B. accounting errors that can be identified by the absence of value correlations within the balance of verification of the synthetic accounts and the verification balances of the analytical accounts.
A. Accounting errors that can be identified by means of the checking balances of synthetic accounts (by lack of value equalities).
The main categories of accounting registration errors that can be identified by the lack of value equalities within the tabular check balances of the synthetic accounts are: errors in the preparation of verification balances, errors in determining the value elements of the accounts (runs, amounts, final balances), errors in systematic record-keeping and errors in determining the amounts in the accounting formulas in the chronological record (journal record).
B. Accounting errors that cannot be discovered by means of balance sheets.
With the help of the balances of verification of synthetic accounts can not be discovered errors that change the movements in the accounts, equally, both in debit and in credit.
These categories of errors may include:
1. omissions in the accounts;
2. compensation errors;
3. imputation errors;
4. registration errors in the chronological record.
The omissions of accounting registration consist in the fact that certain economic transactions recorded in the documents remained unrecorded in the current accounts. Such errors can be identified by pointing out all the documents that were the basis of the records in the current accounts in order to discover documents that may not bear the confirmation of these records, either as a result of complaints received from the partners of the unit in connection with the respective economic operations.
Due to these errors, certain anomalies occur regarding informational data in some accounts, such as: debit balances on liability accounts or credit balances on asset accounts; unearned debt rights or unpaid monetary obligations within the set period. These can also be discovered by logical analysis of the value correlations that must exist within the analytical verification balances.
Compensation errors are due to the mis-transcribing of some amounts from the supporting documents in the journal ledger or from it in the book register – large, in the sense that an extra amount has been passed into one part of an account or several accounts and another amount less, equal to that passed in addition, in the same part of another account or other accounts so that , overall, the two categories of errors compensate each other. The identification of these errors is possible due to the fact that in the analytical verification balances appear some unnatural balances on certain analytical accounts (i.e. credit balance to an asset account or debtor balance to a liability account), as well as following complaints received from third parties.
Imputation errors are due to the transcription of amounts, exact in size, from the chronological record in systematic evidence, both in debit and in credit, but not in the accounts to which they were to be entered, but in other accounts that do not correspond to the economic content of the operation in question. These errors are identified as in the previous case, i.e. by means of unnatural balances that occur within the analytical verification balances.
Errors in chronological record may be due to several causes, such as: misestablishment of corresponding accounts; registration of an economic operation twice, both in debit and in credit; reversal of accounting formulas; the correct preparation of the accounting formula, but with another amount, higher or lower, than the real one, both in debit and in credit. These errors can be identified by means of the chess check balance, which, in addition to some value equalities, also renders the correspondence of the accounts, thus providing the possibility to identify the erroneous correspondences between certain accounts, as well as compensation and imputation errors.
Acum va puteti pregati pentru inspectia fiscala întrucat sunteti in masura sa răspundeti in aceeasi masura cerintelor controlorilor fiscali cu privire la principalele corelaţii pentru o balanta lunara corecta.