[A]       Background

 

Let's talk about a very general reality between a Client and their Statutory Auditors

• Statutory Auditor would meet you personally Once in a year and have a look at your Accounts Quarterly if you are interested in paying Advance Tax
• The Client would be sending the data for GST return filing on a Monthly basis, but that’s really Mechanical after a few initial months and done by the Junior Staff without any Holistic look at the Transactions and Exception reports.
• The Statutory Auditor will point out Non-compliances and Defaults for August 2019 in August 2020 (the client would hardly recall anything of the sort )
• There is a general one-time evaluation of your Personal Accounts at the fag end of the Financial Year when it’s the last opportunity to pay the Advance Tax.

[B]       Clients Needs in Changing Times

 

• Clients want a Quarterly Report of their Profit / Loss so they could know the standing of the business
• Non-Compliances and Exceptions be brought to their notice by the next month end or maximum 3 months (High possibility to recall things and even resolve)
• Save Interest Cost for Delayed Tax Payments – Most Important – why unnecessarily pay to the Government instead You can hire an Internal Auditor
• Personal Accounts be updated Periodically generally on a Quarterly basis for more appropriate tax planning and payments.
• Minimize the delay and defaults pertaining to TDS, GST, Profession Tax, Equalisation Levy, International tax, Corporate Law, FEMA, RBI matters.
• Most Importantly, clients realize that Income Tax Returns and Taxes cannot be given Ignored for 11 months of the year as every penny saved is a penny earned.
• A Cost Benefit Analysis – Remunerate the Internal Auditor for his timely work as he/she would have already saved great amount of Interest Costs with timely inputs.

[C]       Benefits of Hiring an Internal Auditor/Supervisor

 

• Monthly Visits for Analysis of Data
• Guidance to Accounts Team and Informal Training
• Preparation of Tax Calendars customized to your Organisation
• Guidance on Storing and Retrieval of Files and Folders
• Report Exceptions and Non-compliances to Management in a monthly 1 Pager Report
• List down To-Do List and push for execution with the Accounts Team
• MIS Reporting to Management
• Guidance regarding updated laws and clarificatory circulars specific to your organization
• Improved Processes and Productivity among various teams viz sales, purchase, logistics
• Reporting to the Management for any inconsistencies requiring the attention and immediate interference
• Guidance on Tax Planning for Personal Accounts (which is generally a March to March Phenomena )