Outsourced accounting: why financial reporting matters
Simplify tax year-end easier with outsourced bookkeeping and accounting solutions
Tax season is underway with provisional taxpayers having from July 2022 until January 2023 to file their returns.
While SARS has made it easier for taxpayers to be hundred percent compliant this year with easy filing options, it’s essential to present the revenue service with accurate, up-to-date financial statements in order to optimise your tax obligations and avoid penalties.
A full set of financial statements, including an income statement, balance sheet, and cash flow statement, based on a flawlessly kept set of books is the safest bet when it comes to having a hassle-free tax season.
Before you file your company taxes this year, it’s important to make sure that your books are in good order. An outsourced accounting solution can help you do just that.
Do you know your ITR14 from your ITR12?
One of the confusing aspects of filing company taxes is the variety of submission forms and specific procedures that SARS requires from taxpayers to ensure full compliance.
If these forms and codes are like a foreign language to you, you’ll definitely want to consider outsourced bookkeeping and accounting for your business.
Here’s a quick breakdown of what you need to submit this year.
ITR14
This form is used to submit company tax returns on an annual basis and must be filed within twelve months of your financial year end
For most companies, this means that it will have to be submitted to SARS by February the following year at the latest. Final or topup payment is however due 6 months after year end.
- The ITR14 contains financial statements detailing your company’s income and expenses.
- Based on these submissions, SARS will assess the amount of tax your business needs to pay or the size of your tax refund, whichever applies.
ITR12
This form is used for all individuals, as well as sole proprietors and self-employed professionals who pay provisional tax on their small business income. It needs to be filed by the end of August with a second filing at the end of February.
- As with the ITR14, you need to indicate your income and business expenses for the year so that SARS can assess your taxable income.
- The process is simpler than filing company taxes but it’s still a good idea to make use of an outsourced accounting service to ensure that you are fully compliant with SARS requirements.
Accurate financial reporting for a stress-free tax season
Full financial reporting is the process of documenting the financial activities and performance of your business over specific time periods. This critical practice monitors income and expenses, ensures compliance and provides real-time information to support financial analysis and decision making.
Filing your company tax returns on time and accurately is the best way to comply with tax legislation and avoid fines and penalties – and you’ll need a comprehensive set of financial statements before you submit your returns.