Chances are: Amounts reflected in the Tax Returns that do not tally with the Source Documents and Books of Accounts causes BIG Deficiency Tax Assessments!

Tax Assessment is the amount which a Taxpayer under Tax Investigation has to pay. It comprises of additional taxes to be paid PLUS surcharges, interests and penalties.

On top of it, the Business-Owner/Taxpayer can face Civil and Criminal charges if there are violations found by BIR examiner.

This problem happens mostly with Small-Medium Enterprise (SME) and Small-Entity (SE) Businesses!

Because, most SME and SE Companies do not have a full-blown Finance Department with Accounting Head.

SME and SE Business-Owners just let and trust their payroll, tax, accounting and bookkeeping in the hands of their bookkeeping staff employee or accounting clerks.

So, whatever output these employees have are just being accepted and assumed correct.

These bookkeeping staff/employees are not the right people to do the job of an Accounting Manager or Supervisor.

Their level of knowledge and experience has not yet reached the skill-level of an Accounting Head.

An Accounting Manager or Supervisor oversees what needs to be done.

He/she has the bird’s eyeview. And, can see how one accounts or tasks affect the entire result or financial performance of a business.

He/she can see how transactions or economic/financial events affect financial and tax reporting which a mere clerk or employee cannot see.

A bookkeeping clerk/employee more often still lacks the knowledge and training, thus, still needing someone to guide him/her.

Consequently, if being left alone on their own, the financial and tax reporting of your business suffers big time.

More, when a tax or bookkeeping problem pop-up, there are employees who go on AWOL or cannot be reached leaving the business owners/taxpayers hanging because they are so afraid and anxious to show up.