Going forward, businesses need to be aware that SARS is going to start focusing on PAYE and VAT payments not being done correctly.
A business registered for VAT needs to have proper accounting systems in place to do VAT on the invoicing basis. Doing VAT on the cash basis, i.e. off your bank statements is not permissible unless you are registered with SARS for cash basis.
All payments to staff need to reflect on the Salaries and the correct PAYE deducted and paid to SARS.
If you are a small business owner, you need to be sure that you understand enough to know your accounting is in order.
Soaring instead of Boring
Most companies find accounting and accountants boring. If however you want your company to soar you need to make full use of this valuable resource. Your accountant can help you steer clear of financial pitfalls and keep you from wasting money on unnecessary expenses.
Effective Debtor and Creditor management make a big difference in the viability of your business. Don’t pay for hype. Make good value decisions and you can build a solid business that can withstand the test of time.