Out the blocks provides cloud accounting services which includes capturing and/or review of all financial transactions, otherwise also known as bookkeeping.
Here are a few bookkeeping tips that should be of assistance to you and at the same time lead to a reduced bill from your accountants.
- Be organized as it saves a lot of time. There are many good books on the market that can help you in this regard.
- Have a proper filing system in place and take a few minutes each day to do the filing. Consider to set up an on-line account such as Dropbox or Box that allows you to save all your documents electronically as you would receive them from your suppliers. These files can effortlessly be shared with your accountants.
- When using your own accounting software set it up correctly from the start. Ask yourself what information you want from your accounts and set it up in a way that will give you this information. The type of expense categories etc. you setup will largely depend on the type of industry you operate in. Get your accountants’ input regarding the framework in which your expenses needs to be disclosed to SARS.
- Open a separate bank account for your business. You immediately eliminate a lot of unnecessary work by not having to record personal expenses to a loan or capital account.
- Keep business and personal expenses separate. Use your business account for business expenses and your personal account for personal expenses.
- Ensure all supplier invoices are in the name of the business – not in the name of the member or the owner. Once your business is registered for VAT, this becomes an especially important factor whether you’ll be able to include the expense as a deduction or not.
- Taxpayers registered for Vat need to ensure that invoices from their suppliers contain the correct information. The invoice must say Tax Invoice and contain the supplier’s name, vat number as well as your name and Vat number. Obtain original documents from suppliers and do not accept faxed copies. Develop a habit whereby you only pay suppliers when they have provided you with valid tax invoices.
- Maintain daily records of all transactions. The longer you leave it the more difficult and time consuming it will become.
- File all expenses paid by the business owner in a separate file.
- If you are not a trained bookkeeper get a qualified accountant to check your accounts on a regular basis to ensure that you are doing things correctly. The accountant has a trained eye and will quickly pick up errors that you may not see.
If this sounds a too daunting task to do yourself, contact us and find out how you can outsource your bookkeeping to us through one of our cloud accounting services.