7 steps to help streamline tax filings, avoid errors, and save money.
Tax filing season is around the corner for many businesses. But to avoid headaches and errors, tax management should be consistent throughout the year. No matter if you work for yourself or are part of a bigger business, there are steps you can take that make tax management and filing much simpler and more reliable.
The following tips are not financial advice. For official advice, contact a registered tax consultant, accountant, or the South African Revenue Service.
Know who will file your tax
Every company has a legal obligation to file tax submissions, and ultimately, the company’s owners are liable. However, that doesn’t mean they must do the filing. If you understand taxes properly, you can complete your filings. However, it’s often worthwhile to use a tax practitioner or accountant to file on your behalf. They can focus on tax-related issues such as record-keeping and monthly filings. If something goes wrong, they can also work with tax authorities on your behalf.
Find a reputable accountant or tax practitioner
Managing tax on your behalf is a serious responsibility. There are several professional bodies that register and vet members: The South African Institute of Professional Accountants (SAIPA), the South African Institute of Chartered Accountants (SAICA), Chartered Institute for Business Accountants (CIBA) or South African Institute of Taxation (SAIT). When selecting someone, also ask for their references and testimonials from current customers.
Create a preparation strategy
Tax management is overwhelming if you leave it all to the last minute. Instead, break it down into manageable steps. Every month, update accounts and records, and make any required monthly submissions (such as VAT). At each quarter, look at employment compliance and ensure your monthly submissions are up to date. When the 6-month or annual deadline is closer, collect outstanding documents, check submission deadlines, and prepare the submission materials.
Use appropriate software
Digital software can really improve tax management and filing; the type of software depending on the size of your business. A basic spreadsheet is a good starting point for sole proprietors and for running internal records. But if a company is larger and has employees, it’s smart to use a more robust accounting system such as Fiskl or Sage.
Consistent record-keeping
When filing taxes, the burden of proof is on your business through documents such as bank statements, invoices, receipts, sales, payroll (IRP5/IT3), and asset purchases. Consistently capturing and filing records will simplify the tax filing process and avoid making errors that leave deductions on the table or lead to penalties.
Use OCR software
OCR (optical character recognition) software converts a photo of a document into a digital version where you can scan and select the text. It’s a common feature in leading accounting software, many of which offer mobile apps so you can use your phone anywhere, storing the digitised document online.
Automate what you can
Manual tax administration can lead to big errors, missing documents, lost revenue, and costly penalties. Modern accounting platforms help you automate tax processes, often integrating with your business bank account to capture data automatically, track payments, keep accurate records, and generate statements. Some systems can also prepare tax filings, saving even more of your time.
Not sure where to start? Vodacom Business partners with Fiskl, a feature-rich accounting platform that is ideal for small businesses, and Sage Accounting for medium and larger organisations. It also offers Vodacom BusinessOne+ for companies that require an end-to-end ERP service that plugs into accounting, logistics, sales, and more. Hosted securely in the cloud, you get all the features at manageable subscription rates that you always control.
