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Use these six steps to store your company's accounting records correctly

by , 29 July 2014
Are you terrified of SARS auditing your business? A lot of business owners are. They're scared SARS will find something wrong in their finances and fine them.

This becomes an even scarier prospect if your accounting records are all over the place. You see, when SARS does an audit, it'll want to see your accounting records too not just your tax information.

So if you haven't correctly stored your company's financial records, it could spell disaster. But you can avoid this just by following these six steps to storing your accounting records correctly...

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Are you protected from personal liability in the new Companies Act?

If you're a director - you could be held personally liable for fraud in the company. This means that you need to know exactly what your financial status is.

Relying on your auditor for feedback is not good enough anymore. 
 

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Here's how to store your accounting records
 
Step #1: Use a digital programme like Excel to do your company's bookkeeping. This way your accounting records are already saved on your computer in a digital form.
 
Step #2: Save these records on an access-controlled folder on your shared drive. You must give employees authorisation to access this folder. This enables you to limit the people who can access your records. You should limit it to you, your accountant, payroll manager and CFO.
 
Step #3: Save a backup copy on your computer so you have another one. Do this just in case the one in the shared folder goes missing or someone changes something.
 
Step #4: Move older records to an external hard drive instead of printing them out and deleting them. This way if the hard copy goes missing, you can just plug in the hard drive and print another copy.
 
Step #5: If one of your managers wants to see your records, print them out for him so he can examine them without changing anything.
 
Step #6: Always print out a hard copy at the end of each month that you can file away so if SARS does audit you, you can quickly hand over the documents it wants to see.
 
If you follow these six steps you can avoid the disaster of losing these important records. 
 

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