HomeHome SearchSearch MenuMenu Our productsOur products

Is it necessary to keep company records?

by , 09 December 2013
The Tax Administration Act (TAA) requires you to keep your company records. This is just one of the reasons why you must keep your records. Here are two more reasons...

You must keep your company records:

  1. To benefit your company by meeting the Vat law's specific record-keeping requirements; and
  2. So SARS can satisfy itself that you've kept to the law.

Basically, record-keeping is the most important aspect of your Vat management strategy as your records are the proof you need to substantiate your claims and returns to SARS.

According to the Practical Vat Loose Leaf Service, SARS can conduct a Vat audit on you within five years of assessing your Vat returns to query or examine your audit trails and accounting methods. And if your records don't comply, you'll face serious penalties of up to 200% now that the TAA is in place.

Your records must match up to what SARS wants.

These are the three things your records must show:

  1. You must keep your records in their original form or in a manner authorised by SARS or by a senior SARS official;
  2. Keep them for five years; and
  3. Keep them available and open for SARS inspection.

That's not all.

Make sure you keep these 16 financial records for five years

  1. Ledgers;
  2. Cash books;
  3. Journals;
  4. All books of account;
  5. Till readings;
  6. Tax invoices;
  7. Creditor statements;
  8. Debit notes;
  9. Credit notes;
  10. Paid cheques;
  11. Cheque books;
  12. Bank deposit slips;
  13. Bank statements;
  14. Debtors' lists;
  15. Creditors' lists; and
  16. Financial statements.

Remember, one tiny error in your company records could make you liable for severe Vat penalties and interest from SARS. Now that you know the importance of keeping your records, use these four tips to keep your physical and electronic records safe.

Enjoyed this article? Subscribe to receive these free articles in your inbox daily.



Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>