Use these four tips to keep your physical and electronic records safe
One tiny error in your company records could make you liable for severe Vat penalties and interest from SARS. The reality is that you need to be even more precious about your company records now that the Tax Administration Act (TAA) is in effect. How do you go about doing this? Use these four tips to ensure your physical and electronic records are safe.
You need to take extra care to keep your company records safe. Data vanishes. PCs aren't fire-proof. Viruses attack and files corrupt themselves.
The following is good practice to keep your records safe:
Keep your physical and electronic records safe using these four tips
Scan all physical proof into your PC;
Make original print outs of electronic copies;
Ensure you have more than one copy of each; and
Store these copies in different locations. Store all the copies you've made in different files or back-up folders. If your building burns down, everything in it will go too. So make sure your accountant or financial director has a risk-proof storage system in place.
Here's an example of what could happen if you lose your company records:
The Practical Vat Loose Leaf Service explains that BNQ Chemicals got into trouble with SARS when its financial records were ruined and it couldn't back up any of the claims it'd made.
The financials were kept in a box in the basement. A water pipe burst and the records turned into a soggy, illegible mess. BNQ learned the hard way.
No back up of financial records means SARS won't accept your company's input tax claims as there's no proof you actually made the purchase. Think of all the money and time that was lost!
Your electronic copies can also meet disaster, so backing up everything is important!
Using these four tips will help ensure your physical and electronic records are safe.
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