- How do you value gifts-in-kind in your accounting records?
- In South Africa it's estimated that income generated through donations is in excess of R11 billion per annum. But many entities don't know how to treat this income in their accounting records. Robin, a member of the Accounting and Tax Club , asked a question about gifts-in-kind and the impact they have on his books.
Let's see what he asked, and what Alan Lewis, Tax Advocate and independent tax ... ››› more
- [27 October 2016]
- How to report output tax correctly so you don't attract SARS' attention
- If you're a Vat vendor, you basically act as an agent to collect Vat on behalf of SARS! And the system relies on you as the vendor to pay the correct amount. But SARS checks every step. And it will audit you if it thinks you've handled output tax incorrectly.
But before you can report your output tax in your Vat return so you don't attract SARS' attention, you first need to know how to calculat... ››› more
- [24 June 2014]
- The only 18 goods you can zero-rate
- You must either charge Vat on taxable supplies at 14% or 0%. But did you know the zero-rate only applies to certain supplies? The Vat Act is very specific about what these supplies are.
Let's take a look at the only 18 goods you can charge Vat at the zero-rate on. The only 18 goods you can charge Vat at the zero-rate on:
Direct and indirect exports: (interpretation note 30 on SARS' ... ››› more
- [06 June 2014]
- Part 1: Three ways to protect your accounting records
- Your accounting records are the most important documents your business has. You have to keep your accounting records on site in case SARS drops by unexpectedly... which it's entitled to do in terms of the Tax Administration Act. But keeping all this information in your office is risky. Because people can access your records without authorisation and manipulate your records.
You're in luck.Here ... ››› more
- [04 June 2014]
- Accounting Made Easy Workshop 2014 Bookings are open
- Are you always confused when your bookkeeper brings you pages of spreadsheets - and expects you to use them to make management decisions? Your confusion ends today!
Discover how using colour and visual aids will help you become accounting and business literate in just one day.
Join Mark Samowitz at the Accounting Made Easy Workshop 2014
Chartered accountant and a seasoned accounting lectur... ››› more
- [27 May 2014]
- Do you use IFRS, IFRS for SMEs or GAAP for my financial statements?
- One of our subscribers, John recently asked a question on the Accounting and Tax Club (accountingandtaxclub.co.za). He has to prepare financial statements for the year ended 28 February 2014 and he needs to comply with the Companies Act. He has deferred tax and doesn't know if he should use IFRS or IFRS for SMEs. Our IFRS expert KC Rottok Chesaina says John has three choices. Let's have a look at ... ››› more
- [16 May 2014]
- Managers: Audit your auditor!
- Do you only see numbers and tables when your bookkeeper gives you your financial statements for the year to review?
Or do you see vital tools that tell you exactly how your business is doing?
If all you're seeing is a jumble of numbers you need to read on! 74% of fraud is committed by employees within the organisationWhite collar crimes account for many profit losses and statistics show that... ››› more
- [05 May 2014]
- Four tests to make sure your general ledger accounts are correct
- Before you create management reports, use your accounting software to create a summary of all the different general ledger accounts, AKA trial balance. Remember to double check to make sure your trial balance is correct.
Let's have a look at the four 'reasonableness tests' you can do to check if your data records are accurate so you're sure all your general ledger accounts are correct each mon... ››› more
- [05 May 2014]
- Are you spending TOO MUCH on accounting costs?
- Are you spending TOO MUCH on accounting costs?
REVEALED: The secret to reducing your audit fees...
There's nothing worse than handing over fat cheques to your accountant, right?
If you're a business owner you probably rationalise this expense with thoughts like:
'My accountant helps prevent fraud in my company'
'At least my accountant helps us to save on tax and Vat'
'At least I'm ... ››› more
- [16 April 2014]
- Completing your Vat return? Here's what to do if you provide commercial accommodation
- Commercial accommodation is subject to Vat. And you need to record the amounts correctly in your Vat return. If you provide this kind of accommodation, continue reading to find out which blocks you need to fill in on your Vat return.
What's commercial accommodation?
To ensure you've got everything right under commercial accommodation, let's look at the definition first.
According to Phi... ››› more
- [20 March 2014]
- How to create management reports in five minutes using PivotTables
- It's midnight and Albert, a financial analyst, has a year of data he needs to sort to prepare his management report. If he does it using Excel formulas, he knows he'll never get it done in time for his 8am meeting with management.
He wants to create a report to show how the business performed in each quarter. But this takes time - and time is the one thing he's short of!
And then he remembe... ››› more
- [19 March 2014]
- Every year, SARS rejects 90% of all Vat Registrations. Don't become a statistic
- Avoid becoming a Vat registration failure statistic. Today, I'm giving you four tips to follow so that you can avoid sitting long hours at SARS and get your Vat registration number quicker.
Four tips for easy Vat registration
Tip #1: Make sure you fall into one of the four Vat registration categories if your turnover is nil
SARS will refuse to register you if your turnover is less than R50... ››› more
- [10 March 2014]
- Avoid this one business rescue mistake that cost Mr Madodza thousands
- Mr Madodza couldn't believe his ears that morning in the High Court. The Judge allowed the Sheriff of Nelspruit to remove his vehicles, even though Section 133(1) (Companies Act) protects businesses from creditors during business rescue. And Mr Madodza was undergoing business rescue. So what happened? The small mistake he made, was that he didn't follow the correct steps to appoint his business re... ››› more
- [07 March 2014]
- How Jason uses Excel to speed up his invoicing process
- Everybody has monthly invoicing that takes them hours to do. Jason is no different. He's the manager of a consulting company. He wants to issue monthly invoices to customers for services provided during the month... and there are thousands of records! Jason wants an easy way to extract activities on each client so he can bill them quickly.
Use this one Excel function to help you quickly search ... ››› more
- [05 March 2014]
- Do you have options while you're still waiting for your Vat registration number?
- There's a lot of confusion around what you must do as a vendor while waiting for Vat registration to be approved. Should you start trading right away or should you wait until you get your Vat registration number? Continue reading to find out...Here's what to do while waiting for your Vat registration number. Before we get to what you must do while waiting for your Vat registration number, let's an... ››› more
- [03 March 2014]
- Free Video Tutorial: SARS officials can show up unannounced to check your accounting records
- According to Henk Heymans, editor - in chief of the Practical Accountancy Loose Leaf Service: the Tax Administration Act says SARS officials can show up unannounced to check your accounting records. Yes, you heard right! With the new Tax Administration Act, SARS officials can show up at your door to check your accounting records without giving you any notice
To find out more about the Prac... ››› more
- [17 February 2014]
- Is your business rescue practitioner the right man for the job?
- Over 3 766 businesses are liquidated every year in South Africa. If your business is insolvent and you're still trading, you can restructure and reorganise your business through business rescue. But to do this, you need to follow the correct processes and appoint an eligible business rescue practitioner. But how do you know if he's the right man for the job? Let's have a look at the five requireme... ››› more
- [22 January 2014]
- Excel Tip 1: How to format cells, columns and rows in Excel
- Every office relies on Excel for some business function. So we've decided to send you a series of Excel tips to help you streamline this. These range from easy tips that just make your life easier, to more advanced and complex tips.
Today's Excel tip forms part of the more basic Excel tips. But keep a look out for more advanced tips in the coming weeks. Excel Tip 1: How to format cells, column... ››› more
- [10 January 2014]
- Free video tutorial: How to order the perfect amount of stock every time with these six steps
- Today's free video tutorial is on how to order the perfect amount of stock every time in six easy steps, so you'll never be left with redundant stock or reach critically low stock levels again.
For the A-Z of Direct Material budgets, including examples, red-flags to avoid, and a Direct Material budget template to get you started, turn to chapter B06: Budgets: Direct Material budget in you... ››› more
- [06 January 2014]
- Warning: You're NOT allowed to claim input tax on these club subscriptions
- One of the most common mistakes many vendors make when calculating their input tax claim is to include amounts that aren't allowed. Luckily you can avoid making the same mistake. DON'T claim input tax on these club subscriptions.
SARS scrutinises input tax claims. In fact, one simple mistake could see you facing harsh penalties.
Since that's a risk you can't afford to take, don't try to cla... ››› more
- [19 December 2013]
- What you NEED to know about exempt supplies and how to handle them
- You must tread carefully when dealing with exempt supplies. One mistake could see you facing a fine or (heaven forbid!) imprisonment of at least 60 months. But you can avoid this if you have the knowhow...
According to Philip Rosenberg, Managing Editor of VAT201 E-report: The comprehensive guide to completing your Vat return correctly, the general rule is that if you're a Vat vendor, you must i... ››› more
- [18 December 2013]
- Four benefits of eFiling your Vat return
- Not using eFiling to submit your Vat returns? If so, continue reading so you can discover the four benefits of eFiling for Vat vendors.
There's no reason to submit your Vat returns and make payments manually now that eFiling is in place.
SARS eFiling is service that allows you to register free of charge and submit returns and declarations, make payments and interact with SARS in a secure o... ››› more
- [18 December 2013]
- Seven things you SHOULD remember when you complete your Vat return
- Vat is a self-assessment tax. So SARS relies on you as the vendor to represent your tax affairs and Vat flows honestly and correctly. This isn't a licence to cut corners or do things incorrectly. You WILL be caught, because the self assessment system is backed up by computer checks, periodic audits and severe penalties. To help you get your Vat return right, keep these seven things in mind when yo... ››› more
- [18 December 2013]
- Do you know what's included in Books of Account?
- We had such great feedback from our last question and answer bulletin on travel expenses (http://fspbusiness.co.za/articles/accounting/the-correct-way-to-allocate-travel-expenses-when-you-charge-clients-3269.html#.UqBX9Sd_BLc) that we decided to send you another interesting question and answer.
Our reader Meisie asked, what are 'Books of Account'?
Let's look at the full question, and see wh... ››› more
- [06 December 2013]
- How to Video: Five simple steps to stop purchasing fraud happening to your business!
- If you don't think fraud can happen to you...Think again! I hear stories every day from our readers about the fraud South African companies fall victim to on a daily basis. And today I'm giving you five simple steps to stop purchasing fraud happening to your business!
Is your business fraud-proof?
If not, here's how to protect your business from SA's 9 most common, most crippling ... ››› more
- [05 December 2013]
- The correct way to allocate travel expenses when you charge clients
- If you spend any money travelling to clients, you'll know that the expenses quickly rack up. Most companies charge their clients for these travel related costs. But do you know how to account for these in the best way, so you don't have to pay any additional charges on the amount?
Have a look at this question we got on the Accounting and Tax club and the answer from our expert Alan Lewis, Tax A... ››› more
- [29 November 2013]
- Four simple steps to stop purchasing fraud happening to your business
- Don't think fraud can happen to you? Think again!
That's exactly what Ike Cellular's management thought before they became a victim.
You see, at Ike Cellular, Grace the bookkeeper places all the company orders, checks them and captures the supplier invoices.
When Grace is off, Paula handles the orders on her behalf.
What Paula discovered a few months ago shocked her!
Read on to find out ... ››› more
- [13 November 2013]
- What the Vat auditor checks when he arrives at your office for an audit...
- One of our Vat subscribers wrote in to the Vat Help Desk, wanting to find out what checks the Vat auditors carry out when they audit a business. Here's what the experts at the Practical Vat Loose Leaf say about Vat audits, and what you should expect. According to the Practical Vat Loose Leaf, SARS auditors will check the following…
11 general checks the Vat auditors carry out when they audi... ››› more
- [07 November 2013]
- Do 2014's budgets and forecasts in one day
- It's that time of year again... Budgets and forecasts are at the top of the agenda. Have you been putting off doing your budgets and forecasts for 2014? This year is different. Why? You ask. Well, I'll tell you. To help you consolidate budgets in the most effective way, attend our Budgeting and Forecasting with Excel Workshop on 22 November 2013 in Johannesburg. In just one day, this workshop will... ››› more
- [01 November 2013]
- Revealed: The easiest way to fix your accounting Excel problems
- If you have a hard time dealing with Excel problems, you'll be glad to know there's a simple and effective solution to fix all your Excel problems. Read on to discover how the Practical Guide to Excel can help you simplify even the most complex problems in Excel!
If you're one of the many accountants who want to fix all their Excel problems in the shortest amount of time, but don't have time to... ››› more
- [22 October 2013]