by Melanie Thompson | Feb 11, 2023 | Tax
If you are a sole prop or a company registered with a year end of February, the next month is a very important month for you.
Provisional tax is due.
This is a submission to SARS and a payment of tax on profit that you have made over the past six months in your business. Now you may be thinking, that following the ostrich method of accounting, and ignoring the submission is the best way to go.
But I can tell you it ends up costing you way more in penalties and interest.
Provisional tax is your annual income tax for the year split into two payments, which means it is not an additional tax, nor is it related to VAT.
Check on SARS website for detailed guides to assist you, and remember …
We are here when you are ready to book a chat.
by Melanie Thompson | Jan 11, 2023 | Uncategorized
This should be the number one reason that you hire an accountant / finance manager for your business.
We offer diverse expertise
If you look in the medical field for example, we all know that you get different kinds of doctors and other medical professionals. For clients outside our field, most accountants or bookkeepers do the same job. But when you delve into the accounting sphere, you see that you get various expertise that you can call on.
Some are experts in data analysis, some in receipt collections and management, some do really well in cash management and other do process planning. And these are only a few areas to name. With the move to outsourced accounting functions, it is easy to get lost in the compliance side, as this is the standard offering of all firms.
Compliance alone won’t change the future
Compliance alone is not going to change the future of your business.
Compliance is not going to have a direct effect on your life, other than – you will sleep easier knowing you are up to date.
To move your company forward, you have to make conscious decisions to make changes and improvements to system optimisation, to cash management and to pricing.
Finance Manager – Not only for big business
In the accounting field, the hiring of a financial manager for your business will give you this move. We draw on our years of experience to bring all these items together to use as a base in your business. A good business accountant is always going to ask you “out the box” questions. They will discuss proactive plans and give you proactive reporting that gives you true insight into your business.
The broken bicycle
As I mentioned above it is possible to get lost in the day-to-day grind of the business.
A business colleague gave me a great example – it is possible to ride a bicycle with a square or flat tyre, but once you get off, analyse the situation, spend the time implementing changes, then you can hop back on the bike with its pumped up tyre – and Reaching your future goals then becomes easier.
As we come back from our holidays breaks – you probably have some thoughts around what is working and what areas you could concentrate on to make your business more profitable. Now is the time to discuss how you can implement these in the your business.
Build a team
It is important to see that any Finance professional is there to be part of your team, they draw on your expertise in the business, as you would draw on their financial experience.
Never feel intimidated reaching out to an accountant. Accountants with passion for our field are always looking to advise in business and help clients. We will always talk your language and meet you where you are in business. If this is not your experience, consider making a change.
by Melanie Thompson | Dec 20, 2022 | Uncategorized
Do you acknowledge your wins?
As we come to the end of the year it is always a lovely time to do a reflection and most important, acknowledge to ourselves how far we have come in the past year. It is always easy to focus on the obstacles, but look and really look at what you, yourself and your business have achieved. How much have you grown over the past year?
Decision on status quo
For myself I’m taking the word “Take Action” into the next few months, because I do realise and believe that the absence of making a decision is in itself a decision. With making no decision you have decided that the status quo is where you would like to be. This may be where you are supposed to be at this time, it is then important to be comfortable with your decision.
Schedule time
So even the small step of scheduling in your diary a time to consider and make a decision is a step forward. This will give you some mind space to tackle the next one, and then the next one.
Choosing to outsource bookkeeping is a big decision that I see clients struggle with, hopefully the below will give you some insights and help you going forward.
I would tell you –
As I reflect on the past months, these are a few things I would like to tell my clients and prospective clients from the past year.
- Your accounts are not as bad as you think. This is why I am here, because I have seen this before and I know how to tackle it.
- You need to consider taking your accounting online and using the automation convenience that is available. It is going to save you time, and make you more efficient. It is also less complex than you think.
- I am not here to judge you, you may think your accounts look a mess, but you have not seen “the competition”. There are always business owners who are in a worse state than you.
- Don’t put off bringing controls into your business. Knowledge is power.
- Focus on thinking forward – Get the accounting package. The bookkeeper. The Accountant. The Tax professional. Have a look at your monthly reports.
This is a better investment than paying for past financial statements and tax returns for compliance reasons only.
Wishing all – time to reflect and piece of mind in the coming year.
by Melanie Thompson | Nov 25, 2022 | Uncategorized
Turning back in your diary you see your notes around getting your Bookkeeping and Taxes in order. As a tax deadline draws near or worse, you receive a letter from SARS, this becomes more critical.
This might be your starting point, but you should consider financial management as a way to improve your business. As a business owner, you have a legal obligation to run a well-organised business with due diligence and compliance. You also want to know how your business is performing.
You start feeling anxious and overwhelmed by the sheer magnitude of the task ahead. It seems like an insurmountable obstacle, and you don’t know if you have the energy and emotional resources to get through.
First question –
Maybe I can do it myself?
Then,
But what has prevented me from completing this task in the past months?
You know it is possible to do a large portion of this work yourself, but do consider these questions before you make the final decision:
- What is the reason you have not yet updated your accounts?
- Do you know what you must do? Or are you still looking for free training on the internet?
- Have your eyes glazed over every time you start the work? It may be because of boredom or lack of accounting structure. No judgement. That’s why there are Accountants in the world.
- Do you have the time? Do you really have the time to keep up to date and stay compliant?
- Are you aware of the compliance laws ?
- Do you know which business expenses you are able to claim?
If you are answering No to the above questions, consider using a remote Accountant or Tax Professional to help.
You might even be concerned to show the professional how many months you need done. You don’t know what to ask for and you feel alone dealing with your books. This is not true, there are many business owners in the same place as you right now. One of the reasons I chose this career is to help you create order out of chaos. Don’t worry about the state of your current accounts or the lack thereof. We can start where you are right now.
Some of the reasons to use an outsourced Bookkeeper or Accountant on a monthly or quarterly basis, is they –
- Keeping your accounts up to date,
- Give you financial reports in time to make profitable business decisions.
- Help you to interpret your financial reports.
- Submitting tax returns efficiently
- And most importantly, their big focus – making your business more profitable.
It is always daunting to start in any area that is not your speciality, so consider outsourcing to an expert as they have the skills, resources, knowledge built up over time and working in other businesses to do the work efficiently and correctly.
This will free up your time to focus on your primary purpose – to make money and make your business a success!
by Melanie Thompson | Oct 27, 2022 | Uncategorized
PLEASE TELL ME ……
I had a question today from a client that took me by surprise. Will you discuss the Profit & Loss figures with me before you submit the Tax Return and I have to pay the tax?
Now while I am clear on my work ethic and processes, I should have communicated this more.
I am aware of my process, which is calculate, discuss with owner, calculate, discuss, ……. Until we are both on the same page. I am there to advise you, answer your questions, get you legal and compliant, but in the end – the business owner holds all the responsibility and authority for their business.
I make it a space where my clients can ask me anything, and I commit to finding them the answers. And going forward, this is a point I will be sure to mention as we start working together.
So remember – Once I have the figures calculated, I will request your permission in writing to do the submission. You will be fully aware of all the figures involved before you give the go-ahead click.
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