This project is about internal control and how it may be used inside small and medium-sized
enterprises (SME). The research conducted at this type of firm can help to define internal
control procedures, analyse the control systems, and issue an opinion on the financial
statements' integrity, and how those controls can affect taxation. This study highlights the
importance of a straightforward approach when it comes to taxation such as VAT and
Corporate Tax. Some operations, such as registering invoices or expenditure receipts, are
sometimes overlooked. Most of the time, this is overlooked by people who are unaware of the
significance of tracking these charges. And it is at this point that it becomes intriguing to
integrate efficient management with internal process control, allowing reports to be trusted due
to their veracity. Financial Statements are essential in a business setting since they give
information about the company's performance and position in comparison to other rivals. The
importance of bookkeeping and how it is done may have a favourable or bad impact on
outcomes and, as a result, their taxation.