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How to check the quality of your accounting in 10 steps

A list of 10 questions that reveal whether your accounting is in order — asset inventory, balance confirmations, monthly forms, pay slips and annual M4/M12.

FP Finance Plus 16 March 2021

Answer the following 10 questions and find out whether your accounting is in order — and whether you have all the necessary information for timely and accurate business decisions.

Checklist of 10 questions

  1. Inventory of fixed assets — Is an inventory of fixed assets carried out at least once a year?
  2. Confirmations with partners — Are confirmations of receivables and payables carried out, and how often?
  3. Timeliness of balances — Do you check the timeliness of balances on the giro account and cash register?
  4. Monthly forms — Are monthly forms for salaries, VAT and municipal surtax submitted and paid on time?
  5. CBCG forms — Are forms for the Central Bank submitted on a quarterly basis?
  6. Input invoices — Does each of your input invoices meet all the conditions for deductible input VAT?
  7. Cash expenses — Are all costs you pay in cash documented and recognised?
  8. Travel orders — Are your travel orders complete?
  9. Pay slips — Do you receive pay slips with the salary calculation?
  10. Annual M4/M12 forms — Are annual M4 and M12 forms submitted?

How to use this list

If you answer “I don’t know” or “no” to any of these questions — your accounting may have weak points that can lead to:

  • Disputed deductible expenses in a tax audit
  • Fines for late submission of forms
  • Wrong business decisions based on outdated data
  • Problems with loan applications or tenders

What next?

Go through each link and compare the practice of your accounting. If you find shortcomings — contact Finance Plus. We will do a detailed diagnosis and recommend concrete steps to raise the quality of your financial reporting.

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