Four items you must keep if you've converted your accounting records into an electronic format
Electronic records are any records that you keep or store in an electronic format on a computer or any other electronic device. You could've originally created these records electronically or converted them from non-electronic form.
If you're one of the many business owners who are taking advantage of technology and have converted accounting records into an electronic format, there are four items SARS wants you to keep.
Keep reading to find out what these are so you can comply and avoid harsh penalties.
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Here are the four items you must keep if you've converted documents electronically
You must have a chronological record and explanation of all changes and upgrades you do to your software and hardware.
You must also include an explanation of how the upgraded system can recreate an acceptable electronic form. I.e. an explanation on how the upgraded software would produce an electronic document that's the same or similar to the original document you created on the old software.
Have reasons why you've transferred data across software or hardware.
SARS requires you to have a detailed record of the controls you use to maintain an old system (if you have one).
You must have an explanation of back-up facilities and archives for electronic systems that you don't use any more.
There's one more thing you need to remember.
According to the Practical Accountancy Loose Leaf Service,
if you use the internet for your transactions, you must keep a written document that contains the log files created as this will help you identify individual transactions.
The Loose Leaf Service
adds that your document must also contain the security measures you have in place to maintain the identity, integrity and authenticity of your transactions.
Now that you know the four items you must keep if you've converted your accounting records
into an electronic format, comply so you can avoid harsh penalties.