HomeHome SearchSearch MenuMenu Our productsOur products

Make sure you keep these ten accounting records - or else

by , 12 November 2013
Keeping SARS happy, while also meeting business accounting requirements, means there are a lot of records you have to keep... Here's what you need to use you don't get in trouble.

The experts at the Practical Accountancy Loose Leaf explain that, at the very least you must use the accounting records listed below. This will make sureyou've got plenty of controls in your company that you can use as proof to SARS if you need to. It'll also ensure compliance with other legislation regarding record keeping.
SARS needs you to keep these ten accounting records
 
1.       Cash book (records cash transactions)
These are the actual cash receipts and payments made by your business. Only cash transactions are accounted for in these records, no accruals, provisions or sales or purchases on credit.
2.       Debtors ledger (records transactions with specific debtors)
Used to account for all transactions with debtors, e.g. all the sales to debtors, payments made by the debtors, interest levied and adjustments are reflected in the debtors ledger.
3.       Debtors list (a detailed list of all debtors with outstanding balance and aging)
Displays the outstanding balance and the aging of the balance for all debtors at a specific date but doesn't include detailed transactions like the debtors ledger. This is a powerful report for management to assess which debtors are overdue.
4.       Creditors ledger (records transactions with specific creditors)
Used to account for all transactions with creditors, e.g. all the purchases from creditors, payments made to the creditors, interest levied and adjustments are reflected in the creditors ledger.
5.       Creditors list (a detailed list of all creditors with outstanding balance and aging)
Displays the outstanding balance and the aging of the balance for all creditors as at a specific date but does not include detailed transactions like the creditors ledger. This is a powerful report for management to assess which creditors are overdue.
6.       Sales ledger (records detailed sales transactions)
Shows the full sales record by month to compare with previous months and targets.
7.       Inventory listings (records of all inventory on hand)
A complete listing of all stock (raw materials, work in progress as well as finished goods) and contains information such as stock code, description, cost price, quantities and balances per type of stock. This is a very important report for management to use when conducting stock takes.
8.       Fixed asset register (records of all fixed assets owned by the entity)
A complete listing of all fixed assets (property, plant, equipment, motor vehicles, machinery etc.) and contains information such as fixed asset number, asset description, cost price, purchase date etc. and balances per class of asset.
9.       Tax schedules (records of tax information of the company)
A summary of all tax calculations and submissions for the entity.
10.   General ledger (records all accounting transactions)
The general ledger is the heart of the entity and all transactions are accounted for in this record. This includes all sales, purchases, expenses, provisions, accruals as well as tax and VAT transactions.
 
By making sure your accounting records always stay up to date, you'll be able to report on the financial position of the company at any time and can avoid prosecution and financial penalties. 

Vote article

Make sure you keep these ten accounting records - or else
Rating:
Note: 5 of 1 vote


Related articles




Related articles



Related Products