4 tips for businesses to effectively manage Tax Year-End requirements

Tax Year-End. There’s nothing quite like the sigh of relief when everything is submitted correctly and compliantly.

But it’s the process of getting there that makes some businesses squirm. 

In an interview with Sage, SA Accounting Network founder and HD Accounting owner Heinrich Grove shares his tips for businesses when preparing for Tax Year-End. 

In this article, we go through his top tips on preparing for Tax Year-End 2024.

Here’s what we cover:

• 1. Start with payroll reconciliation
• 2. Stay proactive with PAYE and UIF data
• 3. Put on your VAT hat
• 4. Get the facts for company tax

1. Start with payroll reconciliation

Have accurate employee data ready to avoid missing SARS deadlines or submitting incorrect information. 

Remember, SARS already knows from your IRP5s what your salary bills should look like before submitting.

So, make sure data for salaries, contributions, bonuses, fringe benefits, and anything payroll-related is up to scratch. 

2. Stay proactive with PAYE and UIF data 

Whether you use cloud-based payroll software or a manual system, it’s always best to finalise your data for Pay As You Earn (PAYE) reconciliation and workers’ compensation returns well ahead of time.  

Doing so will give you enough time to resolve any outstanding UIF returns and SARS amounts. 

3. Put on your VAT hat 

Preparation is your ultimate secret weapon.

You’ll want to start with bank reconciliation and work your way toward reconciling negative and old debtors and creditors statements. 

Remember, if a debtor hasn’t paid you for 120 days or more, you still have to pay the VAT – even if they haven’t paid you yet.  

Regarding creditors, it’s vital to collect statements and compare them to the balance in your accounting system to ensure you haven’t forgotten to capture anything. 

Make sure you have your VAT, bank, debtor, and creditor reconciliation down to a T by the time Tax Year-End arrives. 

4. Get the facts for company tax 

If your business pays provisional tax, make sure you reconcile all your expenses before February, when provisional tax season starts.

As for company tax, ensure all the relevant bank, debtor, and creditor reconciliations are in. 

Don’t forget about depreciation journals and interest in capital splits. Your accountant may deal with it, but it’s still important when calculating your monthly company or provisional tax. 

In addition, be careful how you spend your money before tax season, as SARS is more likely to make full deductions on smaller expenses than big assets. 

Remember, preparation is golden. If you have all your ducks in a row, tax season will be a breeze. 

Editor’s note: This article was first published in February 2022 and has been updated for relevance.