A lot of small or medium sized business owners underestimate the value of good accounting practices in their businesses.
Unless you studied business management (at the very least) the chances that you (and other new small business owners) would have a decent working knowledge of good accounting practices should be very slim. Most people equate not having knowledge of a particular subject with being “dumb”. Nothing could be further from the truth.
As a business owner it would make sense to focus on selling your product…be it a service or an actual item either imported, manufactured by yourself or sourced from a supplier. THAT is your primary function. But like many business owners have already realised… having bad administrative practices will filter into your accounting system. And before too long you will find that SARS’ questions aimed at digging into your financial records to find out how much you owe them in taxes can turn into a nasty experience.
It is no exaggeration when I say that most of our clients were gained by word-of-mouth. It is also worth noting that the recommendation from our existing clients to potential clients only came after said potential client had a mild to severe run-in with SARS. And there is no shame in it.
Keeping accurate records and adopting the right strategies to ensure adequate record keeping is definitely not beyond anyone. And more often than not a solution is so elegant and simple that it will catch you by surprise.
One of the most important strategies you could implement to ensure adequate record keeping is to simply refrain from drawing large amounts of cash and to rather swipe your business bank card for ALL purchases that could not have been concluded via EFT. By incorporating a mixture of EFT payments and card swipes you ensure that absolutely every single transaction your business enters into are recorded on your bank statement. This will eliminate the need for an accountant to work through ALL your invoices AND your bank statements when simply working through the bank statements would save you time, money and provide you with very accurate figures.
If you need any advice or would like to approach us to see what we can do for you and your business, please contact us on firstname.lastname@example.org – no matter where you are in South Africa. The advances in technology have made it extremely easy to help any business or individual no matter where you trade from.