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 | 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.
by Melanie Thompson | Aug 27, 2022 | Uncategorized
If you fit into one of the following brackets, take note
- Provisional Tax payer,
- February Year-end Companies, and
- Sole Proprietors.
I know tax season strikes fear into most people, but it doesn’t have to be that way.
This is a time that most want to avoid, but let’s turn this year around and use the time for “good”.
If you don’t know what to do to get your Tax submission ready, we’re here to help you every step of the way.
Make sure you have your hand on the steering wheel of your business all year round.
REFLECT
Here are some questions you can ask while you work through your numbers to prepare the Tax return.
1. How were my Sales for March to now?
2. What did I do right in this area?
3. Where should I improve?
4. Expenses. Which of the expenses do I need, and which ones can I eliminate?
5. Do I still need to subscribe to my current monthly subscriptions? Think about which subscriptions you want to cancel.
PLAN
1. What Sales do I plan to make each month?
2. How and where am I going to achieve these Sales?
3. List any subscriptions to cancel & action
4. Note any expenses you should cut down.
And lastly, what Salary am I paying myself monthly?
SALARY TAX EFFICIENCY
Is my monthly Salary the best balance between my needs and Tax Efficiency for the year?
August is the time to think about and put plans in place for year-end.
Once you reach February you have no control to change/improve Tax Efficiency.
ACCOUNTING KNOW-HOW
Remember, outsourcing this area in your business means you don’t have to remember all the deadlines.
Make sure you engage an accountant that understand business.
You don’t want a “plug in numbers and submit” old-school Accountant unless you’re an accountant yourself.
Your Accountant is going to ask the above questions of you… IF you choose someone who is invested in your success,
by Melanie Thompson | Dec 18, 2021 | Uncategorized
As we enter the final days of 2021, and the holiday season, I wish all a Wonderful Holiday Season with your family and Friends and all the best going into the New Year.
I love a New Year, with the feelings of a new start, renewed energy. And before this fades, set your intentions for the year, set your word.
For us at Bookkeeping First, it is a time to plan, organise, prioritize and be ready and refreshed to take on all the challenges.
A quote that really sticks with me is “if you think it is expensive to hire an expert, look at the cost of hiring an amateur”. Myself as a business owner, I have to commit to outsource the areas I am not good at, and the areas that I choose to neglect because they don’t feed my passion in my business. I have taken on a wonder assistant, who compliments my business and together we look forward to meeting new clients in the coming months.
On the serious side, over the past months, I have heard much mention of SARS enforcing compliance, charging penalties. Now is the time to get your business affairs in order. It will be a great start to the year knowing you have one less thing to worry about.
With our services, you choose how much or how little you want to do, based on your time and budget.
Blessing for the Season.
Melanie
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