Tax Day

The tax season is finally open for individuals to submit their tax returns. This year the season is shorter compared all the other years.  Submission of tax returns calls for proper planning to entail a smooth submission of returns.
Taxpayers need to ensure that they have allTaxpayersred documentation handy. These documents include IRP5, medical certificates, pension certificates, proof of medical expenses and all other relevant documents. If you are a first timer make sure you have registered with SARS and have a tax number. Once you get your tax number go on SARS efiling and create a profile. Once the profile has been created you can go ahead and submit your tax return.
Your accountant can help you with your individual tax returns by completing the return on your behalf and filing it through SARS efiling. Some taxpayers are not Tech savvy and prefer to submit their returns at the SARS branch close to them. This is time-consuming as one has to que at SARS to submit the tax return, I would advise that all taxpayers register of SARS efiling so they can submit their returns electronically from the comfort of their offices or homes. This is hustle free and very convenient.
An individual needs to ascertain if they have to submit a tax return. SARS has criteria to determine whether an individual taxpayer must submit a return information can be obtained on the SARS website.
For more information and assistance with your tax returns please do contact your accountant or tax practitioner who should be able to assist you with your tax queries or you can call SARS directly.

By |2018-07-05T15:55:52+02:00July 5th, 2018|Financial Management|0 Comments

EVERYTHING YOU NEED FOR A SUCCESSFUL TAX DAY

The moment that we have all been waiting for is a few weeks away. And yes SARS has announced the opening of the Tax season on the 1st of July and it will run until the 31st of October. Three weeks shorter than what we were all used to.

Taxpayers have to complete and submit tax returns before closing date to avoid unnecessary penalties from SARS. Submitting tax returns gives SARS the opportunity to assess an individual’s income earned, deductible expenses and tax paid over to SARS for the tax period and calculate to see if there is money refundable to the taxpayer or payable to SARS by the taxpayer. It can go either way, after completing the return the taxpayer can request a tax calculation that will show them who owes who money. In some cases, the employee who might have deducted more money in terms of PAYE hence SARS will refund the taxpayer and vice versa.

Now what does this mean for the taxpayer? It simply means the taxpayer has to start preparing to complete and submit tax returns. IRP5’s need to be in place, medical certificates, receipts for medical expenses and all other relevant documents that one needs in order to complete a tax return. If the tax return is going to be done by the taxpayer’s Accountant then all the relevant information needs to get to the Accountant in time. The sooner the tax return is completed and submitted the sooner any refunds can be paid to the taxpayer – time value of money. In the event the tax return is being completed by and Accountant, the taxpayer needs to be available respond to any questions or queries that the Accountant might have regarding the tax return.

By |2018-06-07T10:59:43+02:00June 7th, 2018|Financial Management|0 Comments

Is accounting only a matter of debits and credits

Often times some businesses do not value the importance of bookkeeping and accounting. Statements like bookkeepers do not bring the money so I can do without one are often heard. What most business owners fail to understand is even though bookkeepers and accountants do not bring in the money, they provide very vital support to any business.

Bookkeepers and accountants are trained to keep accurate records of transactions happening in any organisation. This information once captured into the entity’s accounting package is then used to draw up management report that is given to management and business owners so they can see at a glance how the business is performing. In short so they can see how their efforts are paying.

Bookkeepers and accountants do not just debit and credit accounts simply because for every debit entry there has to be a credit entry and vice versa, no. They have to follow certain acceptable financial reporting standards when they do the capturing and processing of financial information in the accounting package. This requires a lot of knowledge and ongoing continued professional development as changes in standards are brought in every now and again.

This is then used by different users of financial statements which vary from prospective Investors, banks if the entity wants to borrow money, shareholders etc.

We may not agree but accounting is the heart of a business. Without proper record keeping, how is a company going to know what their liabilities are and who owes them? Some transactions might just fall through the cracks. Remember we have among us some companies that will only pay upon presentation of an invoice and if the entity does not know who still owes and how much some money might never be received.

By |2018-05-17T14:36:50+02:00May 17th, 2018|Financial Management|0 Comments

As a business owner, do you know what these terms mean?

Business languageBusiness has its own language, just like any other career field. Knowing this language is crucial for every entrepreneur because information in business is communicated using certain essential financial accounting terms. As a business owner, it is important to familiarize yourself with these terms, especially as someone new to the business industry.  They might seem intimidating at first, but when you get used to them, you will understand why you needed to know them.

Balance Sheet – A quantitative summary of a company’s financial condition at a specific point in time, including assets, liabilities and net worth.

Assets – Rights or other access to future economic benefits controlled by an entity as a result of past transactions or events.

Expense – Any cost of doing business resulting from revenue-generating activities.

Revenue – The total amount of money received by the company for goods sold or services provided during a certain time period. It also includes all net sales, exchange of assets; interest and any other increase in owner’s equity and is calculated before any expenses are subtracted.

Coupon – Rate of interest payable on a loan.

Enterprise – a business activity or a commercial project.

Equity – A description applied to the ordinary share capital of an entity.

Gross – Before making deductions.

Net – After making deductions.

Liabilities – Obligations of an entity to transfer economic benefits as a result of past transactions or events.

Liquidity – The extent to which a business has access to cash or items which can readily be exchanged for cash.

Profit – Calculated as revenue minus expenses.

Turnover – The sales of a business or other form of revenue from operations of the business.

 

 

By |2016-11-01T10:20:08+02:00March 29th, 2016|Uncategorized|0 Comments