Compliance in Kenya

Tally Solutions, Jan-23-2020

Compliance is a set of rules, instructions, guidelines or specifications laid out by the concerned authorities/ institution. What does compliance means for a business entity? As a business, it is necessary to be cognizant about it to avoid any non-compliance scenarios which will impact your business negatively. If managed well, it can help you to have easier business operations and will help in building a good reputation in the market.

In order to cope with the demanding regulatory environment, it is vital that organizations sit up and take notice of the different laws, they need to devise efficient and effective ways to maintain compliance and minimize their risk.

All businesses in Kenya have started to pay close attention to VAT - iTax and have recognized the risk as well as the rewards of being fully compliant.

Risks of being non-compliant in Kenya

Businesses who do not adhere to the rules and regulation specified by the authorities run the risk of non-compliance which results into heavy implications. Some risks of non-compliance are as follows:

• Penal actions and financial losses to the organization due to mismatch in return and records
• Loss of reputation and business integrity
• Customer loyalty is impacted

Statutory Compliance Management

To meet compliance deadlines for a specific regulation, Tally has come up with a VAT - iTax solution to eliminate error which might have occurred due to omission or commission. As, compliance is not a one-time event hence Tally.ERP 9 has taken a proactive approach and re-engineered the statutory compliance solution to make them more efficient and effective so that businesses can concentrate on their core offerings. This enables the company to achieve their goals smoothly.

With the increased complexity of today’s business environment, it becomes a very challenging and a monumental task to be in tune with the operational needs of the business. At the same time, not paying attention to it may result in a lot of damages to the concern. To prevent this and to provide adequate support, an organization can use Tally.ERP 9, which will help to remain 100% compliant with the ever – changing regulatory environment.

Tally has deeper understanding of the regulatory setting in Kenya and hence provided specialized iTax solution for the organizations. Tally has streamlined the process right from the day to day recording of tax invoices and filings of returns every month.

Tally Accounting & iTax Software

Following are some of the tasks performed by statutory compliant Tally.ERP 9:

• One time configuration of VAT rate at company level
  
  
• Provision to define multiple types of devices & their numbers
  
  
• Simple gateway to define PIN and tax head for the customer and suppliers ledger
  
  
• Facilitates simple tax invoice creation
  
  
• Automatic tagging of ETR into tax invoices
  
  
• Error free tax computations in business transaction
  
  
• Execute billing of zero rated, exempt and imported items in a single transaction
  
  
• Real time Vat payable/refundable information for a given period
  
  
• Automatic bifurcation of zero rated, exempted, general rated, exempt and import transactions in report
  
  
• Automatic identification of human created error in a transaction (if any) before filing tax returns
  
  
• Provision to save your finalized returns which can be modified and revised
  
  
• Preparation of VAT returnswhich can be uploaded into the KRA portal