With SMEs gearing up to recover from the economic blow brought on by Covid strains and strict lockdown measures, it’s important to get tax filing right to avoid penalties and possibly save money. While it’s not always easy to stay compliant, SARS has tried to digitise most of its services. Allowing businesses to file online through eFiling, make internet bank transfers, review their tax status, and pay SARS online for free and at any time.
Streamline your tax filing with these top tips:
- Work with professionals
- Lean on technology
- Become tax-efficient
Work with professionals who specialise in business tax
Trying to save money by submitting your own tax returns might sound like a good idea at first, but remember that there are trained professionals who better understand the ins and outs. Rely on them so that you can focus on what you do best (and love the most) which is running your business. In many instances, they’re able to help you save on more than you had initially considered, by noticing where you can get valuable refunds. Doing your taxes yourself can lead to costly financial mistakes that can be avoided when commissioning an accountant or tax consultant.
Bring in a professional as early as possible for timely submission and be sure that your registered details are correct with SARS. Incorrect details can lead to unnecessary penalties.
Lean on technology
Digital developments are continuously changing the game. Automate processes by using the right technology to minimise the stress of tax submissions. Invest in a cloud accounting platform SAGE or XERO to manage and see your finances in real-time and to collaborate with your accountant throughout the year. New technologies make the manual process quick and simple for small firms.
Having well-rounded knowledge of your tax risks gives you the opportunity to understand the tax implications of daily transactions. For instance, managing cash flow to accommodate taxes payable throughout the financial year can help you avoid penalties, interest, and other unexpected consequences along the way.
Other advantages of becoming tax efficient include knowing which exemptions your business qualifies for from SARS, depending on the size and annual turnover.
Continuously monitoring activities and making sure that tax is paid regularly while ensuring that returns are filed on time, helps business owners avoid fines from SARS.
This year, we’re aiming to make your money matters as simple as possible. Keep up with our latest cash flow series in collaboration with Dough Getters Accounting on our social media channels. You can ask your burning tax questions and we’ll do our best to deliver the answers you need. Follow us on Twitter, Instagram, and Facebook for more.