The four upcoming Blogs will serve as awareness or an alert to fellow Business Owners, Entrepreneurs, etc of some factors to avoid doing in order to allow progress and growth in their Businesses.
This series of Blogs are inspired by some information we came to learn about through our Bookkeeping Fundamentals Workshops.
We have learned a lot that some Business owners though they have registered their companies they do not raise an invoice for the services they have rendered instead they do this informally.
They just engage with their clients verbally and tell their prices via your Whatsapp messages, smses, Facebook Inboxing, etc. As much as this methods of communications are less expensive and convenient but that should not mean we must compromise the formal and professional way of doing business.
When you have registered your entity, you have a legal identity for it and should be known and recognised by people you are doing business with. Not only that but it is legally binding as well and furthermore i believe that you are only blocking yourself from success, growth and many opportunities that may come your way. We run our Businesses in a country that have laws, rules and regulations for companies operating in the country and you have no choice but are legally bound by this rules.
Secondly, the use of e-wallet, Shoprite or other retail payments for Business is also not acceptable in Business. A proper business must have a Business account which you may reflect on your invoices.The reason of dodging bank charges or wanting to pay a minimal Tax amount is a sign of a planned failure according to me. I am saying this as i know you are completely limiting yourself from growth.
You will in future be looking for tenders, funding or even investors. This kind of opportunities are always looking at ways of the business run. Financial Management remains the core drive for their decision making. How do you prepare your Business Financial Statements with ewallet information, no invoices, no bank statement or Bank Statement with missing information?
It easy to create a valid invoice. Simply google an Online or Excel Template that is editable and fill in your Compulsory Business legal entities. See below to guide you how to prepare a valid Tax Invoice.
VALID TAX INVOICE
The following information must be reflected on a Tax Invoice for it to be considered valid:
Contains the words
• Tax Invoice (and the word must be on a prominent place)
• VAT registration number (If applicable)
• Name, address and VAT registration number of your Company
• Name, address and VAT registration number of the client or supplier
• Invoice number
• Date of issue of invoice
• Accurate description of goods or services
• Quantity or volume of goods or services supplied
• Value of the supply
• The amount of Tax charged and the consideration of the supply (Only if Vat applicable, In SA is at 14% )
Additional info:
This info is to make it easy for people you do business with.
• Contact details
• Bank Account details
• Social Network names / identity
• Company Logo
• Web address, and any other info that you regard valuable to be on, but the first part is extremely important.
Opening a Bank Account:
Visit a preferred Bank of your choice to open a Business Bank Account with the following documentations
• Proof of adress of less that 3 months
• ID Book
• and you Compamy Documents (CK)
For advices you are welcome to contact us here www.matsobanemetja.co.za
Compiled by Miss Dee On behalf of Matsobanemetja Business Consulting – Coaching Division
Matsobanemetja Business Consulting Pty Ltd 