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Why is Bookkeeping Important in my Business?

Bookkeeping-pic

Bookkeeping is the most important function when you are starting a new business. You should not shy away from this function as it can cost you dearly in the long run.

 

Choose a bookkeeper that you trust and that you can build a relationship with over time. This person will know everything about you, so make sure you choose wisely

So why is it so important to have a bookkeeper?

 

1. Avoid an audit

Small business are not excluded from audits. In fact SARS know about every rand that goes into your bank account. Messy books are one of the audit triggers that could get you audited.

 

2. Limiting the Pain of an audit.

At some point you may find that you are going to be audited. If this raises a single hair on the back of your neck you should be concerned. If you are being audited it would be best to have your ducks in a row. Make sure your bookkeeper is making every effort to keep your books up to date. Insist on monthly reports!

 

3. Dodge Penalties

Many business owners, especially new ones are often unaware of the fact that there are penalties for late payments to SARS. Within a couple of months you could have racked up a nice account by not paying on time. Also – If you do not file your returns on time there is also a penalty. Again I cannot stress how important it is to have a fantastic bookkeeper

 

4. Save time when you file

I am sure you have heard people brag that they submitted their tax return and within in 5 days they got a refund. The reason for this is that those people have their ducks in a row, their books are up to date!

 

5. Dont miss out on those deductions

Not keeping an eye on your books may lead to overlooking legitimate tax deductions or SARS may disallow your deductions unless you have the correct paperwork.

 

6. A clear picture

As a business owner you need to be able to look at your books to ascertain where you stand as a company – are you making a loss? Do you need to increase pricing based on economic climates? Your books are going to give you all the answers that you need.

 

Keep those books up to date!

 

Gail

Gail Pieterse