Accounting and tax review
A Russian manufacturer was to be bought out by a foreign company that already owned 50% of the shares. SCHNEIDER GROUP’s assessment of accounting and tax practices uncovered inconsistencies in the tax accounting and payroll processes, as well as drafting and contracting errors. Our report and the steps taken to mitigate these risks had a positive impact on the takeover process.
The customer's accounting division handles routine accounting, with some tasks delegated to an outsourced contractor. The in-house accountant required assistance in preparing statutory and management accounts for the head office due to the large scope of tasks at hand. Not all of the facts captured in the management accounts were crystal clear to the head office.
The company decided to get an independent assessment of the accounting records' accuracy. The head office wanted the provider of the review to satisfy certain requirements, which included extensive knowledge of Russian and international accounting, as well as a portfolio of numerous projects for international companies in Russia. SCHNEIDER GROUP met every condition on the list of criteria.
To get a holistic picture, we suggested checking the completeness, accuracy and timely submission of the following:
- Accounting and tax records
- Payroll accounting and payroll tax accounting
- Primary business documents
- HR accounting details
- Corporate management accounts
In addition to the line-by-line accounting and reporting review, the customer received a brief overview of Russian statutory and management reporting indicators, as well as a list of recommendations for their accountant on how to improve record keeping. Our partnership began in 2012 and has gone from strength to strength since.
The quality of record keeping and reporting, as well as associated documentation (such as source documents and internal policies), has improved over time. To reduce the risk of penalties, more emphasis has been placed on control procedures such as currency control data harmonisation. This approach to corporate management reporting has improved the quality of information reported to the company's headquarters, making it more systematic and coherent.