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Four accounting records SARS wants to see in your annual financial report

by , 12 May 2014
You have to keep your company accounting records up-to-date. There's always the chance that SARS will come sniffing around and you must be able to show it any records it want. If this happens, there are some accounting records SARS expects too. And if you can't produce them... Let's just say you're in really hot audit water. You can avoid this nightmare if you remember to include these accounting records in your annual financial report.

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Make sure these accounting records are in your annual financial report

If you're still in the dark about what accounting records need to go into your annual financial report, let us help. 
The Practical Accountancy Loose Leaf says you must make sure it includes:
- A cash flow statement;
- A balance sheet;
- A profit and loss statement; and
- The directors report.
And those are just your basic finance reports.
There are still more records you must include in your annual financial report…
How to save on auditors' fees and:
- Ensure your fixed asset register is prepared by the time your auditor arrives;
- Maintain your cash flow;
- Identify problem areas in your business; and
- Cost less than what an accountant charges for two hours of his work.

Make sure these remaining documents are in your annual financial report

The National Treasury says your annual financial report must also include:
A report of the Audit Committee;
A report of the Accounting Officer(s);
A report of the Auditor-General;
Notes to the Appropriation Statement;
The  statement of Financial Performance;
The statement of Financial Position;
The statement of changes in Net Assets;
The statement of Accounting Policies and Related Matters;
Notes on the Annual Financial Statements (including Accounting Policies);
Disclosure notes to the Annual Financial Statements;
Annexures (Unaudited supplementary schedules); and
Annual Financial Statements of other entities (if applicable). 
If SARS does pay you a visit or decides to audit you, these are the records you have to be able to show it. 
You need to make sure you hang on to your reports for each year as well. The Practical Tax Loose Leaf explains that you need to keep them for a minimum of five years. This is just in case SARS wants to check up on last year's report too.
So put together your annual financial report correctly and you'll avoid a nightmare audit with SARS. 

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