Stay focused during an uncertain time: The COVID-19 pandemic presents new challenges for all of us. Post 1 of 3: "Focus on costs"
The COVID-19 pandemic puts pressure on companies and challenges management teams and their decisions. The COVID-19 situation is an external and unanticipated event that is unavoidable and unfortunately presents many matters that are out of companies' control. Therefore, it is crucial that companies focus on what they can do something about here and now. KPMG Acor Tax is standing by to provide good advice on what to focus on and how to do it. The subject matter of this first post is costs.
In these uncertain times and facing a possible decline in revenue, corporate earnings are under pressure. Part of the reason is that both variable and fixed costs need to be paid. Therefore, as a company, focusing on a number of specific areas will prepare your business best for the current situation. You should perform a thorough review of your fixed and variable costs and identify those costs you in fact need in order to your business.
At KPMG Acor Tax, we can offer companies a review of companies' cost base to identify optimisation and savings possibilities. The review considers and analyses the process from the receipt of the purchase invoice, through the booking and VAT treatment of this and until the VAT amount is filed on the VAT return ("from cradle to grave"). We examine whether purchase invoices are booked and handled correctly, including whether the VAT deductions are optimal and whether there is booking of duplications or incorrect use of currency, etc. This review will provide your company with the following:
─ Overview of the VAT treatment of purchase invoices as well as an indication of whether you comply with VAT requirements.
─ Insight into potential savings and optimisation possibilities as well as hedging of any risks.
─ Assessment of whether current processes and workflows support correct VAT identification when booking purchase invoices.
─ Observations and recommendations from identified trends applicable for further process and control optimisation as well as liquidity savings.