Accounting and ERP System Adjustments, Pursuant to the Finance Act, 2019

March 13, 2020

 

 

In view of the New Finance Act, 2019, businesses operating above the N25million tax payment threshold therefore needs to review its operations to effect change in line with the new act. They are also to ensure proper bookkeeping and accounting to enable them to record or make appropriate changes to the current set up in their accounting system/ ERP to comply with the new processes ( tax accounting processes and accounting systems/ software settings).
 
This would enable the business comply with below key points among others:

  1. Change of Value Added Tax (VAT) rate from 5%  to 7.5%.

  2. Accounting for and remittance of VAT.

  3. New requirement accounting and remittance of VAT on local supplies from small businesses below the N25m VAT payment threshold.

  4. Withholding tax deductions and accounting for transactions.

  5. Accounting for staff costs, pensions, retirement benefits and employee taxes

 

To receive support in complying with the above changes,  we implore your firm to  sign up to our services in any of the following areas:
 

  1. Hardware and Cloud Infrastructures to automate your business processes.

  2. Accounting system or ERP Deployment to cater for necessary accounting changes (including set up of appropriate account heads/ ledgers and training of responsible staff on how to process these transactions going forward).

  3. Payroll & HR Solution Deployment to cater for you PAYE, PENSION remittances, HMO etc.., Reviews/ provision of tax computations and tax disclosures templates for your business.

  4. One-on-one Finance Act advisory session

  5. Personal Income Tax and Payroll Application Management Training.