Financial Protection, Risk Prevention: Why Businesses Should Review Their Books

before tax settlement?

In today's volatile and fiercely competitive economic context, effective financial management is a key factor determining the survival and development of each business. One of the most important aspects of financial management is ensuring transparency and accuracy in financial reports, especially when dealing with tax obligations. Tax finalization is an unavoidable task for every business, and thoroughly reviewing books before finalizing not only helps businesses comply with legal regulations but also prevents many risks. potential risk. In this article, we will learn why businesses should have their books reviewed before tax finalization by a specialized company, to protect their finances and ensure sustainable development.

1. What is a book review service?

Book review service is a professional service provided by accounting or auditing companies, to check and evaluate the accuracy and completeness of a business's financial reports and accounting books. . The goal of this service is to detect errors and omissions and ensure that the business's financial activities comply with legal regulations and current accounting standards.

Why do businesses need to review their books before finalizing taxes? Benefits of reviewing books before tax finalization.

Reviewing books before tax finalization is an important step to help businesses ensure the accuracy and transparency of financial reports, while preventing financial and legal risks. Not only that, reviewing books before tax finalization brings many important benefits to businesses, from ensuring compliance with tax laws to improving financial management efficiency.

• Ensure the accuracy of financial reports

Accurate financial reporting is the foundation for accurately calculating tax obligations. Reviewing books helps detect and correct errors in recording and accounting, thereby ensuring that financial reports accurately reflect the actual situation of the business. This not only helps avoid penalties due to incorrect or under-declared taxes, but also helps businesses have an accurate database for financial planning and business strategies.

• Detect and correct violations

During operations, accounting errors can occur for many reasons, including data entry errors, incorrect accounting, or confusion in classifying items. Reviewing books helps promptly detect these violations, thereby correcting them before submitting the tax finalization report. This helps businesses avoid legal and financial risks, while improving internal control processes within the business.

• Prevent financial risks

Regularly reviewing books helps businesses identify potential financial risks early, such as unrecorded debts, unrecoverable receivables, or improperly incurred costs. management... Early detection of these problems helps businesses take timely preventive and corrective measures, protect financial resources and maintain stability in business operations.

• Prepare well for audits, inspections and tests

Inspections – inspections from regulatory agencies or audits from independent audit organizations can take place at any time. Regularly reviewing and updating accounting books helps businesses prepare well for these audits. A transparent and accurate bookkeeping system not only helps the inspection process go smoothly, but also minimizes the risk of fines and avoids unnecessary legal disputes.

Reviewing books before tax finalization not only helps businesses comply with legal regulations but also brings many practical benefits in financial management and business operations. This is an important step to help businesses protect their finances, prevent risks and enhance their reputation in the market. Investing time and resources in reviewing books will bring long-term values, contributing to the sustainable development and success of the business.

2. The work performed by the book review service at CPA HCM

Book review services at CPA HCM often include checking items :

• Legal system: check business registration documents, business capital contribution records, tax policy system applied to businesses since establishment.
• Status of compliance with regulations on management of reports, documents, invoices and books: Check accounting books, documents and storage of invoices and documents, reporting system submitted to authorities power.
• Management and use of invoices and documents: check details of invoices and documents and review compliance with legal regulations for used invoices and documents.
• Check the reasonableness - validity of revenue - expense recognition: check compliance with accounting principles such as: appropriateness, prudence, accrual basis... to detect basic errors such as Revenue does not correspond to costs, revenue - costs recorded in the wrong accounting period... From there, identify data errors in corporate finance and accounting work.
• Evaluate accounting work, analyze the impact of material errors: Identify material errors in accounting and calculate the impact of errors, assess the level of risk businesses must face and overcome to minimize the impact of risks.
• Summary and recommendations: summarize outstanding issues, propose measures to improve efficiency, enhance corporate financial management capacity.

3. What makes the book review service at CPA HCM different ?

CPA HCM is one of the leading book review service providers, standing out thanks to its professionalism, experience and commitment to bringing the best value to customers. We always respect the working principles: Full commitment, independence, honesty, objectivity and confidentiality, comply with the regulations of the State of Vietnam, Vietnamese Accounting Standards issued by the State as well as International Accounting Standards accepted in Vietnam. Besides, we are always aware and put our customers' legitimate interests first. Protect customers' rights and business secrets. Below are the factors that make the difference of CPA HCM book review service:

• Professional Team of Accounting and Auditing Experts.
• High experience and expertise: CPA HCM owns a team of experienced experts, are well-trained and have international certificates in accounting and auditing. Extensive understanding of legal regulations and accounting standards helps ensure that all customer issues are handled accurately and effectively.
• Continuously update knowledge: The team at CPA HCM constantly updates the latest changes in legal regulations and accounting standards, ensuring service provision of the highest standards..
  • Comprehensive and detailed Book Review Process.
• Scientific review method: CPA HCM applies modern review methods and tools, helping to detect and correct errors quickly and accurately..
• Detailed review: The review process includes detailed examination of each item in the books, from daily transactions to general reports, ensuring that no errors are missed.
  • Comprehensive and In-depth Consulting Services.
• Consulting on improving accounting processes: In addition to reviewing and detecting errors, CPA HCM also provides consulting services to improve accounting processes and financial management of businesses. This helps customers not only overcome current problems but also improve operational efficiency in the future.
• Tax finalization support: CPA HCM supports clients in preparing and submitting tax finalization reports, ensuring compliance with tax laws, accounting standards and optimizing tax obligations.
  • Commitment to Service Quality.
• Commitment to quality: CPA HCM is committed to providing high quality book review services, meeting all customer requirements and ensuring maximum satisfaction.
• Information security: CPA HCM puts customer information security first, ensuring that all financial data of the business is protected safely and is not leaked.
  • Comprehensive and Flexible Support.
• Flexible services: CPA HCM provides flexible service packages, suitable to the needs and scale of each business, from small and medium-sized businesses to large corporations.
• Timely support: Our team of consultants is always ready to support and answer all customer questions quickly and effectively.

Using the book review service before tax finalization at CPA HCM is a smart and necessary choice for every business. With a team of experienced experts, a comprehensive review process, in-depth consulting services and a commitment to high quality, CPA HCM will help your business ensure accuracy and transparency in financial reports. , prevent financial and legal risks, while improving management efficiency and sustainable development. Let CPA HCM become a trusted partner, accompanying you in protecting your finances and developing your business.