Preparing for your financial year-endHills Business Solutions
Preparing for your Financial year-end (FYE) is absolutely imperative. And for many companies, 28 February would have signalled their financial year-end – which essentially is an opportunity to gain a holistic insight into your company’s performance over the last 12 months.
The Companies Act stipulates that a company must have a financial year with a start and end date and this needs to be set out in the Company’s Notice of Incorporation.
Get a good accountant
With a good accountant on board, you’ll ensure that reliable and timely financial records are produced, that tax planning is done proactively and ensure tax audit readiness.
However, it’s important to note that your tax practitioner can only use the allowances that Sars permits.
Do be aware that tax planning and structuring start from the beginning of your financial year. Scrambling for records after the year-end is just simply much too late.
Good tax planning entails many intricacies. This is why professional advice is imperative. At all times tax structuring measures should be both lawful and be able to pass a Sars tax audit.
Your accountant will be au fait with the most recent tax changes to advise your business accordingly. Changes may include amended deductions or concessions for small businesses. He/she will make sure all tax breaks are considered before finalising the financial statements.
Backing up crucial business information should always take top priority. This would include registrations, financial information and customer data. And it would be best to store the backups in a secure off-site location.
Finally, with proper planning and foresight, you too could reap the benefits of an accurate and successful financial year end – provided you have a good accountant on board.
Financial statements are key for any business to plan for the future. Not only that, but many institutions, such as banks, require these to obtain an overview of the company’s financial health.
Your accountant will identify important deadlines while ensuring that activities such as data processing are completed timeously. Accounts need to be checked carefully for discrepancies, omissions and human errors. At the same time, your accountant will advise on the tax return and payment dates, as well as the annual financial statements submission date.
Companies who have kept their bookkeeping up to date throughout the year will sail through a financial year-end. Accounts and records are required to be reconciled and updated. This makes all the difference for a stress-free FYE.
To make sure that a company pays the legally required tax, your accountant will provide