Tax teams spend more than 50% of their time in reconciling tax data manually. 80% of this time goes into repetitive non-productive tasks like data downloading, cleaning up, identifying data which is matching already. Moreover, it is a person dependent process and the output is as good as skill of the person doing the reconciliation
There are advance entries in 26AS form and TDS can only be booked if revenue is recognized. Manual reconciliation doesn’t allow user to go into such details. Reconciliation is not matching of two data sets at total level, it requires more detailing and actions need to be taken as per accounting standards
TDS reconciliation is a periodic activity and the output is checked by auditors in tax audit. Actions taken need to be explained. Manual reconciliation is person dependent; reconciliation is done at total level and not in detail. Companies don’t have audit trail for most of the actions taken and carry a significant amount of audit risk
Finance team have to report TDS reconciliation output to different stakeholders whether management, customers/vendors, auditors or authorities in case of assessment. It is very important to maintain Year on Year records in a standard format which is self explanatory
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