You see, they had stored all of their financial records in a box in one of their offices. But to their dismay, a fire started in that very office.
The employees were able to extinguish the fire before it spread to other areas in the workplace. But the records had been damaged to the point that they were unreadable.
Because of this, SARS would not allow them input tax claims simply because they had no proof of their purchases, thanks to the fire.
But is the fire really to blame, or was the fire merely pointing out ABC's mistake?
I agree with the latter. Let me explain…
When it comes to your financial records, you need to take extra care. And so making backups is non-negotiable.
You should follow the following 2 tips to keep your financial records safe…
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Scan all physical records (proof) into your computer.
Make several original printouts of your records. In other words, ensure that you have many copies of each document.
Once you've done this, place those copies in different locations.
By following these 2 tips, you'll be able to keep your records safe, even if a disaster was to strike in an office which stored 'copies' of the records. The point is that you'll still have access to legible records from another location or source.
*To learn more great information, tips and advice on financial record keeping, such as what financial records you're required to keep and what requirements you must meet when keeping electronic records, go to Chapter R 04: Record Keeping
in your Practical VAT Loose Leaf Service
handbook, or click here
to order your copy today.