Please note: Our office will be closed between 23 Dec and 6 Jan. We wish you and your loved ones safe travels, a blessed Christmas and a happy 2022!
The 2024/2025 financial year is on its last leg. During this period, small business owners often face an overwhelming whirlwind of tasks to ensure their financial records are in order. A well-organised approach to tax preparation can calm the stress storm while saving time and helping you avoid costly penalties. Here is a comprehensive year-end tax checklist to guide your small business through this crucial season.
If you have been piling instead of filing, now is the time to straighten things out. Before tackling any tax-related tasks, ensure that all your financial records are accurate and up to date. Key documents to review and organise include:
Utilise accounting software or hire a professional accountant to streamline this process and identify discrepancies in your records. If you do not have a proper system in place yet, this is an excellent opportunity to implement one for the future so that your finances are continually organised. It will save you grey hairs come next February.
Connected to the previous tick box, accurately recording your business income and expenses is essential for tax compliance. Ensure all transactions are categorised correctly, as this will impact how deductions are calculated. Common expense categories include:
Remember, only legitimate business expenses are deductible, so avoid including personal costs in your calculations.
Reconciling your accounts ensures that your financial statements match your bank statements. This step is vital for identifying errors, such as duplicate transactions or unrecorded payments, which could lead to inaccuracies in your tax submission.
Your financial statements (profit and loss, balance sheet, and cash flow statement) provide a snapshot of your business’s performance over the year. These documents are crucial for completing your tax return and understanding your financial health.
Small businesses in South Africa must comply with various tax requirements, including:
You can access the South African Revenue Service (SARS)’s Tax Guide for Small Businesses here. You can also visit their page for small business taxpayers.
One of the benefits of thorough tax preparation is uncovering deductions for which you may qualify. Let’s call this the “fun side” of taxes. Some common small business tax deductions include:
As always, keep detailed records and receipts to substantiate these claims, as SARS may request proof during audits.
Ensure all outstanding payments – such as employee salaries, supplier invoices, and VAT – are settled before the financial year concludes. Clearing these liabilities helps maintain accurate records and avoids penalties.
Once your taxable income has been calculated, plan for any tax payments due. Ensure your business has enough funds to cover these obligations without impacting cash flow. If necessary, explore payment plans or extensions offered by SARS. Read more here about making alternative payment arrangements with SARS.
We know – prepping for taxes can be boring and daunting. However, procrastination will only worsen the situation. By starting your preparation early, you will have enough time to address potential issues, avoid mistakes, and easily meet all deadlines. We recommend beginning today!
Tax laws can be complex and ever-changing, so consulting with a tax professional is highly recommended. An experienced accountant or tax consultant can:
Doing taxes is, at its best, an arduous job. Calling on the experts to help you out so that you can focus on running your business is a wise investment.
Feeling taxed when you think about taxes? Our expert team can support your small business with all its accounting and tax preparation needs. Let us take the pressure off tax season, ensuring your business is fully compliant and optimising all possible tax deductions.
Take your first step to tax efficiency – contact us to book a consultation.
.png)
