Key Checklist for a Business Enterprise. Things you should pay attention to, when you own a business enterprise. Proper Planning for various works of Business Enterprise, Organizations should understand the important factors and grade them sequentially to keep a check on how their business is being carried out. All the work cannot be entrusted to internal or external auditors; there are certain things which need to be looked upto by the management. Here, we have tried to compile a list of few details that may help organizations to improve their working styles.
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Key Checklist for a Business Enterprise
Check list for Accounts:
- Checking accounting system effectiveness and control (tally, sap, busy etc)
- Overall trial balance review, ledger scrutiny
- Review of budgets and actual expenditure, income etc
- Bank reconciliation statements
- Related party transactions
- Contingent liabilities, intercompany balances
- Possible cost reduction in overheads
- Vouching of all expenses
- Leakages if any
- Appropriate delegation of authority
Check list for Taxation
- Sales tax: Returns, Payment made on due date, Interest paid if any, Sales tax incentive, Documentation, pending cases, Show Cause Notice, Sales tax mega benefit scheme if any applicable
- Service tax: Returns, Payment made on due date, Interest paid if any, Service Tax under Reverse Charge Mechanism paid if applicable, Computation, Assessment, Response to notice made etc
- Excise duty: Returns, Payment on due date, Pending cases, Assessment,
Check whether CENVAT credit if applicable was taken.
Review excise audit, if any was carried out.
- Income tax: Returns, Advance tax, Due dates of payment, Proper computation, Concealment of income if any, Tax audit report, Comparing opening b/s with audit report, Assessments, Notices ,Interest, Penalty etc
- TDS: Check whether TDS has been deducted wherever required and paid, Date of deduction, Date of payment, Interest on late payment, interest on late deduction, Section wise computation, Checking computation, TDS deducted on employees salary, TDC returns, Assessments, Checking forms, Defaults if any ,Revised returns, Challans, Form 27eq, etc
- WCT (Works Contract Tax): Check whether WCT has been deducted and paid wherever required, Returns, Assessment.
- CST: C Forms Issued, C Forms Taken, Summarized reports of C Forms, Checking C Form, and If C form doesn’t exist then considering local vat rate etc.
Check list for Sales:
- Process for acceptance of orders
- Process of discounting
- Incentives issued if any
- Gate control procedures
- Debtors ageing analysis
- Debit/credit notes
- Accounting of bad and doubtful debts
- Rejection due to quality
- Complaint redressal procedure
- Export benefits
- Legal compliance
- Whether payment received within actual period allowed
- Checking order acceptance on sample basis
Check list for Production:
- Production planning: sales forecasting, Demand analysis, Finished Goods stock and determining required production.
- Reservation of raw material and maintaining safety stock
- Determining machine hours required and critical path analysis
- Production execution as per plan
- Quality control and assurance
- Determining production efficiency
- Waste generation and sales
- Proper production accounting and excise declaration
- Checking loop holes if any.
Check list for Inventory management:
- Inventory planning ( Reorder Level, Maximum Retail Price, safety stock)
- Inventory classification
- Requisition and issues
- Returnable/non returnable gate pass
- Stock lying at third party
- Inventory valuation
- Inventory records
- Insurance
- Excise records
- Disposal of slow ,non moving items
- Daily production report
- Daily consumption report
- Reasons of plant shutdown
- Plant maintenance hours
Check list for Human Resource
- Check hr payroll policy
- Attendance and time keeping
- Check advances to employees
- Expenses reimbursement
- Overtime allowance
- Pf, pt deduction
- Training
- Employee turnover ratio
- Terms and conditions of employment
- It policy
- Overall it expenditure
- Organization control environment
Others important areas….
Fixed asset management, asset safeguarding, disposal of asset, and addition to assets, segregation of duties, physical verification of assets, surprise checks, health management, protective equipments, and overall IT policy.
These are the various sectors in which the management needs to look into for the effective functioning of the organization.
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