Here are the eight accounting records the Companies Act says you MUST keep
Did you know: If you don't keep the right accounting records or you don't keep them for long enough, you'll be violating the Companies Act?
That's right. You've actually broken the law if you haven't kept your financial records up-to-date, or if you've thrown any of them away.
You need to fix that mistake as fast as possible or your shareholders and clients may think you're trading recklessly.
Read on to discover the eight accounting records the Companies Act say you MUST keep!
What do SARS and CIPC say about accounting reports?
Keep these accounting records for the right amount of time
The Companies Act requires you to keep your financial records for different periods of time.
Either you'll keep the financial information on a 'permanent' or 'indefinite' basis or you'll have to keep it for exactly seven years.
Here's the list of the records you must keep and how long you must keep them for.
Does your CC follow the CC Act or the Companies Act?
Do it right or face penalties
The eight accounting records you have to keep
1. Company registration certificate (permanent/indefinite);
2. Memorandum of incorporation (permanent/indefinite);
3. Securities register (permanent/indefinite);
4. Register and records of auditors and company secretary (permanent/indefinite);
5. Any documents, accounts, books, writing or records of information such as minutes, notices and agenda (seven years);
6. Copies of financial statements (seven years);
7. Copies of financial accounts and records (seven years); and
8. Records of directors (seven years).
You have to keep all of these records in perfect condition and you must file them in a safe place. SARS can audit your company and ask you to show them any of these records at any time.
If you don't have them, you'll face a full audit or a fine. So ensure you keep these eight records for the right amount of time.
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