Business checkup – how to prepare for it in 2024

In the context of 2024, Russian companies are facing increasing requirements for compliance with the law. Taking into account changes in the rules of inspections, new requirements for document management and stricter controls, competent preparation for checkup becomes the key to stable operation of the company. Let’s look at the key steps that will help the business prepare for the audit and minimize risks.

1. Audit and systematization of documentation

The basis for successful completion of any audit is a complete and up-to-date documentation of the company’s activities. It is important to conduct an internal audit of the documents and make sure that:

– The company’s statutory documents are in order and meet the requirements.

– The financial statements were compiled without errors and submitted to the tax service on time.

– All employment contracts, job descriptions and orders are executed correctly.

– There are internal regulations and policies on key issues such as occupational safety, personal data protection, environmental safety and others.

Special attention should be paid to contracts with contractors. It is not enough just to have a contract — it is important that it is signed and properly executed, and all conditions are fulfilled.

 2. Assessment of tax risks

In 2024, tax audits remain one of the most frequent. It is important for a company not only to pay taxes on time, but also to carefully assess tax risks. It is recommended to conduct a tax audit, which will identify possible errors or inconsistencies in the reporting.

The Tax inspectorate also checks the business purpose of transactions. This means that each operation must have an economic justification. The checkup may include an analysis of the price and contractual terms of transactions with dependent persons, so it is worth checking the internal documentation in advance to exclude any signs of fictitiousness.

 3. Checkup of compliance with labor legislation

Issues of compliance with labor legislation in 2024 remain under the control of government agencies, especially when hiring foreign workers. The main aspects that are worth paying attention to:

– Availability of employment contracts that comply with the requirements of the Labor Code.

– Compliance with labor protection rules, regular briefings and medical examinations.

– Correct calculation of salaries and other payments, including taxes and insurance premiums.

– Compliance with limits on working hours, vacations and accounting of working hours.

4. Compliance with data protection requirements

Since 2024, the requirements for the protection of personal data have been significantly tightened. Federal service for supervision in the field of communications, information technology and mass communications (Roskomnadzor) and other regulatory authorities check companies for compliance with the requirements of the law on personal data protection. It is important for a company to have:

– Personal Data processing policy.

– Consent of employees and customers to the processing of their data.

– Data protection measures, including access restrictions and leak protection.

In case of violation of data protection requirements, the company may incur serious fines and lose the trust of customers.

5. Preparation of personnel for inspection

The key stage of preparation for check up is employee training. It is important to instruct employees about the checkup procedure, explain who should interact with the inspection authorities and how. It is recommended to appoint responsible persons who will answer questions and accompany the inspectors.

6. Development of an anti-crisis plan

No one is immune from unforeseen situations, and even with careful preparation, questions or disagreements may arise. It is important to develop an anti-crisis plan that will determine the company’s actions in case of violations. Such a plan may include:

– Consultations with lawyers on migration, tax and labor issues.

– A corrective action plan if violations are still found.

– Preparation for a possible appeal against the decisions of the inspection bodies.

Conclusion

Proper preparation for business checkup in 2024 requires a careful approach to documentation, compliance with tax and labor requirements, as well as personal data protection.

These measures will help the company avoid fines, litigation and maintain a positive reputation in the market.