Make doing your books easier

Accurate record keeping and bookkeeping is the groundwork for accounting and proper reporting. The better you keep your books, the more consequential and relevant the information and reports you will receive.

Make things easier for yourself, your bookkeeper and reduce your bill from the accountants
  • You need to be organized! Preparation saves a lot of time.
  • Filing can be done in a few minutes per day, have a suitable filing system in place
Set your accounting and bookkeeping software up correctly, if using your own

What information do you want you software to give you? If you use Pastel (and there are thousands of others just as good) it will guide you through a lot of different industries to choose from. Your set of Accounts (expense and income categories) will depend on your industry. Motor vehicle tyres may be classified as an cost of sale expense, which determine your GP %, but will be a normal motor vehicle expense in other companies.

  • Know when deadlines are due. If you’re a VAT Vendor, know when this must be paid over to SARS. Same with PAYE, UIF, SDL and other deadline driven accounts. You will avoid penalties and will save costs. Put time aside well in advance to attend to the work.
  • Never use your personal account for business purposes, open another bank account for business use. This is also true for personal expenses in your business account. Loan accounts needs to be set up and reconciled in a capital account needs to be recorded, this takes lot of intense reconciliations and time.
  • Record cash payments and cash receipts instantaneously. There is always the temptation to use cash for personal or business use without recording the transaction, it's easy to forget. With cash there is no reminder and when things don’t add up allot of time is spent on looking for mistakes
  • Make sure the supplier invoices are in the name of the business - not in the name of the member or the owner.
  • VAT Vendors needs to ensure that invoices from their suppliers contain the accurate information. Must say “TAX Invoice”, Must include the supplier's name, VAT number and your business name and Vat number. Must be the original document, do not accept faxed copies. Develop a habit whereby you only pay suppliers when they have provided you with valid tax invoices
  • Make copies of till slips, as the ink fades easily and make the invoice unreadable -attach the original to the copy
  • It is very important to uphold your accounts on a daily basis. To leave it for another day, means twice as much to work and it will then become difficult to maintain
  • If a member or owner pays expenses out of his own pocket, file it separately. It will be easier to reconcile and make payments to him/her on a weekly or monthly basis
  • Keep your unpaid invoices separate and file paid invoices after payment was made
  • If you do manual invoices, remember to keep them in numerical order. If you use a system this will be generated automatically. Also file them in this order
  • Remember if you do your books and you are not a qualified Bookkeeper, get a experienced accountant to check your work on a regular basis. This will ensure that you are on the right track and that you are doing things correctly. Your accountant has a trained accounting eye and will pick up any errors. Be accounting smart
Keep a proper Petty cash system!
  • Design a petty cash slip
  • Make sure there is place for an authorisation signature
  • Pay monies only if this is signed
  • File the receipt with the authorised slip
  • Maintain an excel document with proper description, date and amount to do your reconciliation and capturing from
  • Do a reconciliation on a weekly basis – your cash on hand should equal your original amount
How long to keep your records
  • 4 Years - Records of capital gains tax - losses or gains.
  • 5 Years -
    • Tax returns.
    • Sales (customers) invoices.
    • Purchase (suppliers) invoices.
    • Bank statements, vouchers and till slips.
    • Salary and wage registers, PAYE, UIF and SDL records.
    • Staff personnel records (after employment ceased).
    • Stock sheets - unlisted company.
  • 15 Years -
    • Annual financial statements
    • Fixed asset registers
  • Indefinite -
    • Founding statement CK1

 

Please contact us if we can be of assistance to you.