What is your plan to change or improve how you do things in your business as far as compliance is concerned?
The mistake that many business owners make is only focusing on the yearly records but the truth is those are a build up from daily transactions to weekly, monthly, quarterly then yearly.
I have decided to compile this specific blog to elaborate clearly the process of recording our transactions and keep records towards the yearly built up.
1. Daily
– Deal with emails and queries
Attend to customer queries timeously is very important so that their problems are sorted in real time. N.B. Your job is to solve your customer problems.
– Check your bank account
– Clear all receipts, file them and any paperwork digitally
– Prepare and send customer invoices
– Record your time worked or those of your employees
The reason for this is to control your performance, and also to make sure that employees are not being over paid for the hours not worked for as that will eat on the business profit.
– Record your mileage
If you are receiving travel allowance from the business, Keep track of all the business kilometres by keeping a log book and update it on a daily basis. Your travel log must indicate the start km and end km on a daily. Separate business and private km.
2. Weekly
– Bank your cash
In my teachings I always encourage that you do not use the cash received from customers until it is banked. That way it assures clarity on the correct declared income of the business.
– Process supplier invoices and pay them
Do not ruin the great working relationship that you have built with your suppliers by not paying them on time. Please keep records of the receipts, statements and the recon.
– Credit Control: Send customer invoices and reminders
Issue invoices to your your customers and follow up on the payments to ensure that you are paid on time. The unpaid invoices have a tendency of blocking the cashflow. It is extremely important to make sure that monies owed to the business are paid on time. For effective run of the business.
– Track your business expenses
No business operate effectively without incurring expenses. It is a norm. But they need to be captured and controlled so that they do not create a loss to the business unnecessary.
– Track your business Income
Equally it is important to set your sales target daily thus monthly. That’s how you grow the business.
– Update and reconcile the petty cash
Set aside the lump sum of money for those miscellaneous expenses. And clearly record the transactions to be able to reconcile the petty cash at the end of each period as you use the cash. Every cent in the business must be accounted for!
3. Monthly
– Reconcile Bank and all accounts
– Produce profit and loss statement and compare it versus last month and versus the budget
A profit and loss report is the one that reflects the financial performance of the business. We must compare that against the budget that was set apart to run the business. This is a control measure and you will be able to track those miscellaneous expenses on time.
– Calculate and save money for your taxes
Calculating the projected taxes you get an opportunity to put those funds aside so that when the tax season approaches the money is available to be paid to the taxman.
– Pay yourself
A business owner need to earn a salary from the business as he is equally an employee in the business. It is imperative that they do this so they can cater for their individual expenses. A clear discipline must exist between the owner and the business.
– Perform stock take
Get used to be making a frequent exercise of stock taking. To minimize shrinkage and losses in the business.
4. Quarterly
– Perform and review profit and loss statement for a quarter
As a provisional tax payer (Business) you are obligated to file your taxes twice a year. That is Provisional tax and the Income Tax which means every six months.
– Process VAT Payments
If you are registered for VAT please make sure that you are complying with the legislative tax laws in place. Every two months you must file the VAT returns so that you are compliant at all times.
5. Yearly
– Perform Profit and loss statement for the year and check it versus the budget.
– Prepare the Tax returns
– Close your books for the year
– Prepare annual self assessment tax return/ annual accounts
Matsobanemetja Business Consulting (Pty) Ltd is your accounting partner that you can entrust with the bookkeping function, right up to financial reporting. We helps you keep accurate records of your business finances.
Compiled by Ms. Dikeledi Seoloane on behalf of Matsobanemetja Business Consulting (Pty) Ltd – Registered Accountant and Certified Tax Practitioner.
We have well trained and qualified staff that manages the aspect of both business and individual taxes.
We are the fast growing accounting service-providing agency in South Africa and across the globe.
If you need a consultation with us with regards to your business, any type of business – please reach out to us by email hello@matsobanemetja.blog
Matsobanemetja Business Consulting (Pty) Ltd offers a wide range of bookkeeping and accounting services, tailored to your business needs at an affordable price.
You may please inquire with us by sending an email to enquiries@matsobanemetja.co.za
And now we welcome the new year. Full of things that have never been.
- Unknown
Matsobanemetja Business Consulting Pty Ltd 