This is the last blog entry for the year and I just thought it would be befitting enough for every business owner to do a bit of “stocktake” with regards to their business standing.
I have realised that many business owners do not really know their businesses legal entities and how and when to maintain them. I would like to challenge you to do this little assignment.
1. Take out your company registration documents – CK . What I would like you to observe is specifically 2 things – registration date of the business and the Financial year end of the business. As much as I would like you to know all the important details on the certificate by heart but I would like us to focus on these 2 for now. I regard the business registration documents as the identity book of the company – it is because of the importance of it, it bit just a paper but a legal document.
2. Anniversary of the business – please make sure you note by heart the exact month your business was registered. The reason is that you are required to file CIPC annual returns every year in the same month so that the business can be kept active on the CIPC database and not be deregistered / removed by the commissioner. This is despite the fact that the business is operating or not. You can read further of this basic business compliance with the CIPC by logging into their website https://www.cipc.co.za
3. Financial year end – on your company registration document please note again the month indicated as the Financial year end of the business. Because you are required every year in the same month to file your SARS annual returns. Financial year end means the month you chose when you register your business that you will declare your earnings and losses to the receiver of revenue. This is also despite whether the business is operating or not. If the company is not operating yet, you are still required to file nil returns. Do not fold your arms and say my business is not operating. The consequences are that you might be penalized for the non-submission. Penalties can range from 250.00 per month.
The above-mentioned are extremely important to every business owner. Even if you have professionals that are taking care of your business – the principle is that by all means please know them by heart.
4. The last item I would like to tackle is taking count of the assets you have acquired in the business for the year. Simplifying the meaning of the word assets – anything that provides monetary benefit in the business currently and in the future. Thus we use assets to generate an income. For example if you are running a catering business – the chairs, table cloths, and all other equipments used for rendering the services are regarded as assets. You use them over and over again to render services to your many different clients. Assets are equally and extremely important in every business thus make sure you grow them every year because that’s how your business grow.
Your business can hardly go under when you have the greatest assets in running your business. Acquire as much as you can and maintain them.
Our next blog will definitely be in the new year – 2023
I wish that you would start positively in your business and feed on more information that will assist in running your business very successfully.
Compiled by Ms. Dikeledi Seoloane. Accountant, Tax Practitioner and Owner at Matsobanemetja Business Consulting – http://www.matsobanemetja.co.za
Matsobanemetja Business Consulting Pty Ltd 