Preparing for a tax audit: 5 steps for a calm procedure

Many business leaders panic at the news of a tax audit, yet companies that operate with well-documented, orderly accounting have nothing to fear. The key is preparedness.

1. Keep your documents in order. Every invoice, contract and certificate of completion must be available, preferably digitally and searchably.

2. Reconcile your records. The data of your accounting, VAT returns and bank statements must match – discrepancies must be clarified in time.

3. Know the risky areas. VAT refunds, foreign transactions and shareholder loans come into focus more often.

4. Appoint a contact person. During the audit, a single prepared person – typically the accountant – should communicate with the authority.

5. Ask for expert support. An experienced advisor can assess the risks before the audit even begins and accompany the company through the procedure.