Process: GL – Taxes Again?

Tax planning concept on green blackboard with businessman hand holding paper plane

Death and taxes, they are always out there and headed for you. Payroll taxes reconciled?  Do it during the month, not during the close.  It is not very often that the pay period ends on the same day as the end of the month.  So as part of your payroll process, put the tax reconciliation as a final step.  How about sales taxes? If your Accounts Receivable team is not reconciling them then you need to add that to their month end close process checklist.  They are closest to the numbers, so it makes sense for them to do it.  Are they preparing the monthly sales tax reports?  Why not? Set up your process to make it mistake proof.  Build in the audit checks and delegate the responsibility.  Then have someone review it.  This should be part of all your processes.  Remember the three A’s?  Action, Analysis, Audit.  If your systems are dialed in, then reconcile some of these balance sheet accounts once a quarter before or after tax reports are due.

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