It is a requirement from the South African Revenue Services (SARS) that any Small, Medium or Large company submit financial statements as supporting documents to their annual tax returns. These financial statements must at least consist of a Statement of Income and Expenditure, a Statement of Assets and Liabilities and Notes. The financial statements must also be signed.
Accounting consist of the preparation of financial statements on an annual basis.
Various forms of financial statements and assurances are available
- Management Accounts
- Accounting Officer Report
- Compiled Financial Statements
- Independent Reviews
Income tax is levied on all income received by a taxpayer.
- Closed Corporations
- Sole Proprietors
Tax is the national government’s main source of income and there are various types of tax levied by the government.
The different types of tax include:
- Income Tax
- Provisional Tax
- Capital Gains Tax
- Donation Tax
Payroll is a major expense for most companies and a primary component of labour cost.
There is also a huge statutory and compliance responsibility on companies regarding the correct management of their payroll.
- Employee’s pay, overtime, bonuses, benefits must be calculated correctly, and the appropriate taxes deducted monthly
- Adjustments to employee’s tax rates must be implemented timeously as tax rates change
- Payslips must be prepared and provided to employees monthly
- New and departing employees must be recorded correctly and timeously
- Relevant monthly tax returns ( PAYE/ UIF/ SDL) must be prepared and submitted to SARS by the specified dates
- A bi-annual reconciliation of the company’s Payroll ( EMP 501) needs to be submitted to SARS for verification
Failure to comply to any of the above will incur substantial penalties and interest from SARS.
We offer a full range of advisory services and tools to equip the start-up and small business owner to optimally manage and grow his/her business.
These services include:
- Financial Management functions. This provides the business with full financial management functions such as budgeting, cash flow management, management reports, trend analysis debtors and creditors management, without the cost of a full-time financial manager
- Tax Advisory functions. This includes
- providing advise regarding the tax implications of business decisions as well as assistance with any SARS query, audit, objection, application
- Providing simulated payslips and advice in terms of salary structures and benefits
- Sage Business Online Support. As an approved Sage Business Adviser, we provide full on-line, telephonic and personal support on the Sage Business Online products
- Business Couching. We provide business support and coaching to particularly start-up and small business regarding the following:
- Basic Accounting principles
- Statutory requirements for running a business
- Various business forms and models
- Business Plans
- Managing change and growth within a business
Bookkeeping refers to the process of financial record keeping.
It is a requirement from SARS that a business maintain financial records that will enable it to prepare and complete accurate tax returns. These records must clearly reflect the income and expenditure of the business.
In addition to permanent books of account or records, a business is also required to maintain all other information that may be required to support the entries in the records and tax returns.
It is therefore crucial that a business use a well-established accredited accounting program
The process of financial record keeping includes the following:
- Posting journal entries to ledger accounts
- Preparing Trial Balance
- Performing regular bank reconciliations
- Preparing financial reports
- Issuing invoices to clients in the SARS prescribed format and managing outstanding Debtors
- Capturing invoices from suppliers and managing outstanding Creditors
Company Secretarial and Compliance Services
These services include:
- Company registrations
- Changes to company details
- Changes to company directors
- Annual CIPC submissions
- Share Certificates
- Share Registers
- Guidance to directors as to their powers and duties
- Tax clearance certificates
- BEE Certification/ Affidavits