Running a business takes a lot of hard work, a lot of dedication, and a lot of time. For start-up entrepreneurs especially it can seem difficult to keep on top of everything as they juggle product creation, personnel management, marketing, order fulfilling, and much more. In the midst of this it can be easy to neglect record keeping, but this can cost you both time and money when it comes to tax return season.
Firstly, accurate record keeping doesn't only make sound business sense, it's also a legal requirement. SARS state that records must be kept by people who submit tax returns for a minimum period of five years. These should show the income and expenditure of your business, and have the necessary documentation to back it up. As well as keeping your business legal and compliant, keeping detailed records in this way will mean that it's much quicker and easier to compile and submit your tax return when the time comes. The same records can also prove invaluable when looking back over your performance to set goals, or to create a business plan that can be used to attract investment.
Most new business people know that they need to keep records, but they don't know what they should keep, or that may be worried about drowning under paperwork. The first thing to note is that your record keeping doesn't have to be solely paper based, using sophisticated accountancy software can help you reduce the need to have scraps of paper floating around, and will help your organisational efficiency. The basic things you'll need to keep are a detailed record of purchases and payments, bank account statements showing your business income, a register of fixed assets and information on bonds or loans you have, and of course you'll need supporting vouchers and receipts for any allowable expenses that you're claiming for.
Every entrepreneur has different skills, and for some keeping track of financial records, keeping accounts, and submitting a tax return can take them well outside of their comfort zone. That's why it's important to realise that help is available, and it can not only be affordable it can actually save your business money. To find out how our entrepreneur's accountancy solutions can help make your record keeping straight forward, and make tax returns easier than you thought possible, contact Bizzacc.