Tips for the Cape Town Entrepreneur from The Tax Shop: All Your Accounting, Tax and Payroll Needs
No doubt, if you ask a few Cape Town entrepreneurs which tasks in their business they dread the most, the majority will answer that they dislike having to complete the tax returns, do monthly bookkeeping and ensure that their payroll is managed correctly. Indeed, many small business owners, as successful as they are, often fail on the fronts of tax, bookkeeping and payroll management. However, all three functions form an integral part of business management and if not done meticulously the business suffers in the following ways:
If you are a small business owner and don’t want to suffer the consequences of trying to handle all administrative tasks on your own and falling behind on such then the answer surely is The Tax Shop in Cape Town for all your accounting, tax and payroll needs. But, even before you rush off to benefit from the expertise offered by The Tax Shop in Cape Town, we have shared a few tips that can help you manage your accounting, tax and payroll effectively.
Use Applicable Software
Better yet, make use of online accounting solutions as available from The Tax Shop as it will help you to ensure compliance with accounting and bookkeeping standards enabling you to keep track of expenses, assets and make it easier to update in real-time. With such, year-end taxes will not cause frustration and you can ensure proper tracking of deductions, leave days and other payroll elements.
Office Automation for Easy Invoicing
Invoicing is often left until the last day of the month, leading to a rush-hour in the office, scrambling to get the invoices to clients and hoping that they will still pay on time. By automating the invoicing you can schedule the invoices for situations where you charge monthly fees. This will help to cut down on the time it takes to get invoices out, ensure timely delivery and reduce the risk of invoice mistakes.
Separate Personal and Business Expenses
Obtain a business credit card and cheque account separate from your personal credit card and bank accounts. In this way, you can separate your business expenses from personal expenses. It will help to simplify the completion of tax returns and help you to stay on the right side of the law when it comes to claiming expenses. You will have adequate record of such, which will also aid in keeping the bookkeeping straightforward.
Set your business account up online to indicate under which category every expense falls. This will make it easier to keep your bookkeeping in order and will reduce the time you need to spend on bank reconciliations.
Don’t Let Debtor Accounts Get Old
It is essential to invoice on time and to keep track of payments not received. You need to follow up regularly. If possible, outsource the functions of invoicing and debtor notification to ensure that you don’t end up with unpaid accounts, which can seriously hinder your ability to operate the business.
Streamline – Don’t Complicate
Don’t over complicate things. Though it may at first seem like the right thing to do don’t itemise every component such as letterheads, ink, pen supplies etc. Rather group under office supplies. The same goes with entertainment, legal and accounting fees. With such you will reduce the time you need to spend on calculating deductible expenses.
Setup Automated Scheduling of Reports
Using online accounting or software solutions schedule the various reports including balance sheet and income statements, daily, weekly and monthly and forward such to your accountant. With such a system in place you will be reminded of tax returns due well-ahead of time to ensure timely submissions and payments.
Outsource your Payroll
Human resources take up a large chunk of your expenses and by outsourcing the payroll to for instance, The Tax Shop in Cape Town, you will have all your accounting, tax and payroll management functions taken care of. This will help to reduce the costs associated with hiring personnel to manage the payroll, ensure timely payments, correct deductions and on-time payments to SARS.