Performing monthly data capturing or bookkeeping functions is an integral part of our responsibilities and should be something you as business owner place value on.
With performing these tasks we advise and structure your income and expenses in such a way to best benefit you in terms of taxes payable on profits and Value added taxation savings. There are legal ways to achieve this and not all business owners have the knowledge to structure these in this manner. As part of this we perform a supplier and debtors reconciliation to confirm your debt to suppliers and the total amount owed to you by your clients.
PERSONAL INCOME TAX
Performing income tax calculations and submitting the income tax returns called the ITR12 for individuals has become a streamlined process with SARS, but it does not mean it is at all a system without glitches nor something any individual without tax knowledge can perform and expect correct or accurate or even the best tax refunds possible.
COMPANY INCOME TAX
Compiling the annual financial statements is compulsory for us to submit the income tax return of a company, trust or close corporation. These are called ITR14 return for companies and close corporations and ITR12T return for trusts. A tax calculation is performed based on the information obtained in the financial statements and from this a final tax liability can be obtained and declared to SARS if the entity earned a taxable income for the year.
Company taxes have some complicated aspects that needs to be looked at and taken into account when performing the tax calculation discussed above in attempt to save you money in terms of tax savings, there are many statutory and legal implications when taking action like this and based on the knowledge we have we will be able to advise you best on the implications and long term effect of the decision taken.
This has become a process which can be performed by the owners or management of an entity with reasonable ease with the help of the various payroll software packages on the market, but often business owners do not recognise that following this process and performing the payroll duties themselves becomes more expensive than simply paying their accountant to perform these duties instead. The costs for the payroll package and the time spent by their accountants to correct mistakes made by them due to the lack of proper knowledge of the income tax and employee tax laws it is often simply better to not perform these duties yourself. If taken into consideration the time spent by the business owner to correct mistakes and perform the processing of the payroll they can rather be running their business and concentrate on obtaining more business.
MONTHLY FINANCIAL REPORTING
By performing the capturing of the books of the entity on a monthly basis the entity can receive valuable on time reporting at the end of each month. This assists in the budgeting and forecasting duties of the entity for cash flow forecasts on a monthly basis. It assists in tax planning and Value added tax (VAT) provisions to be made in respect of the transactions carrying VAT.
This can be very valuable reporting to the business owner and very few small to medium sized entities understand and know the value this can hold for the growth and success of their entities.
COMPILATION OF THE ANNUAL FINANCIAL STATEMENTS
Drawing up the annual financial statements for entities for the submission of the annual tax return is a compulsory function as prescribed by the companies act of 2008. Apart from the annual financial statements we can also compile interim management accounts for entities for any of the various reasons these may be required.