Tax complications got
you dangling by a thread?
Breathe easy with a CA(SA).
The complications that surround tax season are enough to choke the life out of any small business. From the top of your mind, do you know what your Compulsory VAT Registration Threshold is? What exactly does the Income Tax Act mean for a business like yours?
A CA (SA) can fill in the blanks…
|Contactus at firstname.lastname@example.org|
What information needs to be on a Tax Invoice
- The word “Tax Invoice” must be clearly indicated.
- The supplier name, Address and VAT no
- Tax Invoice Number
- Date of Invoice
- Recipient name, address and VAT number of recipient (if it is a registered vendor)
- Description of goods
- Price per unit and quantity
- Total Sale value (Indicate the currency)
- VAT Charged (indicate the VAT percentage)
- Total value including VAT
For tax invoices below R5000
- The recipient details need not appear on the invoice
- There are no requirements to show the units or volume
- The description need not be full.
Value Added Tax (VAT)
Who should register for VAT?
Any person that carries on a business may register for VAT.
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve-month period.
A person may also choose to register voluntarily if the taxable supplies made, in the past period of twelve months, exceeded R50 000.
VAT increased from 14% to 15% from 1 April 2018.
How to register for VAT?
The VAT 101 application for registration must be submitted in person at the SARS branch nearest to the place where your business is situated or carried on.
A registered tax practitioner can register your business for VAT on your behalf.
Registering For Employees’ Tax [Pay-As-You-Earn (PAYE)]
Who should register as an Employer?
An employer must register with the SARS within 21 business days after becoming an employer, unless none of the employees are liable for normal tax.
What is Employees Tax?
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting from remuneration as it is earned by an employee is commonly referred to as PAYE.
Monthly submissions to SARS by Employer
The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment.
Employer Annual Reconciliations
Employers are required to submit their Employer Annual Reconciliations by 31 May to SARS, confirming or correcting payroll tax amounts which were declared in respect of the tax period.
Who should register for Unemployment Insurance Fund (UIF)
An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.
Our Services and Specialties
Accounting / Bookkeeping
Accounting and bookkeeping entails processing of bank statement transactions into an accounting system. Processing is done regularly to ensure accounting records are always up to date to produce accurate financial reports. We follow accounting standards prescribed for South Africa– IFRS for Small and Medium size entities (IFRS for SMEs).
Wessels & Associates Accountants can provide you with accounting reports to enable you to analyse your business performance on a regular basis. Reporting can be done based on your business needs. In a project environment for instance, the accounting system can be set up to report on the profit per project.
- Income statement
An Income Statement is a report that shows your Income from Sales, less your expenses, to show if your business is making a profit.
Month to month comparisons can be made to budgets and to other months to determine why your income and expenses are increasing.
We can assist you with compiling a budget and comparing it with the actual accounting records. This will help you identify over expenditure and corrective action can be taken.
- Balance Sheet
A Balance Sheet is a summary of your Assets and Liabilities at any point in time. Financial Institutions are interested in this report to determine your liquidity, solvency and overall financial position.
Fixed Asset Registers
Wessels & Associates can assist you with setting up and maintaining an Asset Register.
An Fixed Asset Register keeps record of all your companies’ assets, where they are located, when they were purchased, at what cost and their current book values.
As qualified chartered accountants we can calculate depreciation, impairments and book values.
Annual Financial Statements
Financial Statements should be supplied to SARS and CIPC on an annual basis. Banks also require Financial Statements that are compiled by a qualified accountant. As Registered Auditors,this will give the Annual Financial Statements the credibility required by the institutions.
Accounting Systems and Software
SagePastel Accounting Software and Xero Accounting Software are mainly used in our practice.
We can also assist with converting your current system whether manual or on excel over to Pastel or Xero Accounting.
Wessels & Associates is a SARS Registered Tax Practitioner.
We can submit the following statutory returns via e-filing or other portals on your behalf:
EMP Payroll returns– PAYE, UIF, SDL, IRP5s
VAT returns VAT201
TAX returns – IT12 or IT14 – Individual taxation and Corporate Taxation
Provisional Tax returns IRP6
Unemployment Insurance Funds UIF returns
Compensation Commission returns
Tax Clearance Certificates
Tax Compliance Status requests
Auditing or Other Types of Engagements
We are Registered Auditors with the IRBA (International Regulatory Board of Auditors) and there for allowed to conduct statutory audits and other audit engagements.
As there are different types of engagements your business needs to first determine what kind of engagement it requires. Certain small and medium size companies, for example, might only need a Compilation Engagement or an Independent Review rather than a full statutory audit.
The type of engagement required by each business is prescribed by the Companies Act of 2008 and depends on the result of the Public Interest Score (PIS) calculated.
We can calculate your PIS to determine what kind of engagement you need.
Other audit support or Internal Auditing
Even if we are not appointed as your auditors, we can also assist you with getting audit ready and liaise with your own appointed auditors to support you during an audit.
Audit readiness entails for instance preparing prior to the audit, reconciliations such as Bank reconciliations, VAT reconciliations to Turnover, Payroll reconciliations. Preparing a fixed asset register and depreciation calculations and year end journals.
Your company’s control environment and system description can also be documented and streamlined not only for audit purposes but also for your own internal control benefits.
The communication gap between your accounting staff and the external audit team can create unnecessary delays and misunderstandings.
Having a qualified accountant and CA(SA)on youraccounting team will assist both parties (you and the auditor) through a painless and efficient audit process.
We can design and help with implementing controls and systems in your accounting department.
Appropriate internal controls can prevent and detect errors and fraud.
Controls such as reconciliations, approval documentation, and segregation of duties, checks and balances will support complete and accurate accounting records that can be relied on.
A strong control environment gives you that peace of mind.
Training and capacity building
Training in bookkeeping, accounting and general office administration are available should you need to up-skill your employees. This will in the long term build capacity for your business and provide your employees with growth and personal development.
We provide initial free consultation to determine your business accounting and financial reporting needs.
Our fees are based on a combination of the required hours and level of skills needed which is driven by the size of your business and an estimated number of transactions.
We will be happy to provide you with a detailed quotation of our package for your business.
Contact us on email@example.com to request a free consultation.
The objectives of an asset management policy are to ensure that assets are managed and accounted for by:
- Compliance with legislation and accounting standards;
- Compliance with accounting policies;
- Physical control over fixed assets;
- Accurate recording of fixed assets and related transactions;
- Providing management information on fixed assets.
- Prescribe Processes and procedures to implement
The goal of asset management is to achieve the required level of service in the most cost-effective manner, which is achieved through management of the asset’s life cycle.
Asset Management Policy’s purpose is to prescribe procedures for the financial and logistical management of assets, and to:
- provide a formal set of financial procedures that can be implemented to ensure that asset policies are achieved;
- ensure that effective controls are communicated to management and staff through clear and comprehensive written documentation;
- ensure that the safeguards and controls the assets;
- optimize asset usage; and
- emphasize a culture of accountability over assets.
The asset register shall be a complete and accurate database of the assets
and that is regularly updated and validated.
All assets owned and controlled by an entity must be recorded in an asset register.
The asset register should contain following information:
- a brief but meaningful description of each asset
- the date on which the asset was acquired or brought into use
- the location of the asset
- identification number or barcode
- the original cost or the fair value if no costs are available
- accumulated depreciation to date
- the depreciation charge for the current financial year
- the carrying value of the asset
- the method and rate of depreciation
- impairment losses incurred during the financial year
- the date on which the asset is disposed of
- the disposal details
- the date on which the asset is retired from use, if not disposed of.
Assets remain in the asset register for as long as they are in existence or until being written off.
We specialize in the following:
- Fixed Asset Registers
- Quality control and testing of Fixed Asset Registers
- Asset Management Policies
- Assessing useful lives and impairment of assets
- Technical support on GRAP (General Recognized Accounting Practice)
- Training and workshops on GRAP related to assets
- Streamline your internal processes to be more efficient
- Help build your own capacity within your business.
- Audit Support
Wessels & Associates, Chartered Accountants (SA), has the strategic and analytical background to help you formulate a winning strategy and avoid making costly mistakes in any sphere of your business ensuring that every move you make, is a winning one!
When you want to take your business to the next level, you need to partner with a responsible professional who has a holistic business approach and knowledge that enables them to approach things differently.
Wessels & Associates provides financial support services in Accounting, Tax, Auditing and Consulting to individuals and small to medium size business.
We can give your business the decision-making expertise it needs to create real, measurable results to maximise your chance of success.
Wessels & Associates holds the following professional memberships:
SAICA: South African Institute of Chartered Accountant
IRBA: Independent Regulatory Board of Auditors
SARS: SARS Tax Practitioner
SAGE: Forum member