Small businesses have a strong tendency to save on costs wherever possible. The accounting function is a cost that small businesses are more likely to cut costs on, which can easily lead to low-quality reporting, inaccurate calculations, and incorrect tax assessments.
A SAIPA registered professional accountant ensures that you have a trusted, experienced, and qualified accountant that takes care of your accounting and taxation needs. Professional accountants are business advisors that create, enable, preserve, and report on value in your business.
Before cutting costs and accepting the least costly bookkeeper, make sure that they have the required knowledge and experience to be a trusted business partner for you. Let’s explore some pitfalls of using an unqualified bookkeeper.
As a business owner, you must know that your financial reporting is accurate and reliable. You face daily challenges to maintain and grow your business – you don’t need to be concerned about sub-par bookkeeping!
If your financial reporting doesn’t make sense, it hasn’t been done right! If your bookkeeper can’t explain every balance clearly and accurately, they don’t have sufficient knowledge and experience, and you should not trust them with your finances.
Here are some challenges that could arise from inaccurate bookkeeping and reporting:
These are just a few challenges you will be responsible for as a business owner. Using a registered professional accountant for your accounting and taxation needs is always better.
Business owners focus on getting new customers and increasing their income. In addition, business owners must manage staff and ensure high-quality servicing and delivery. Many business owners neglect the support functions and focus on the tasks that generate more income.
The accounting function is one of those tasks supporting the overall business, which business owners tend to neglect quite quickly. Outsourcing your accounting function solves the problem.
Small business should outsource their accounting function because it provides them with:
Accountants use financial reports to prepare and calculate all the payable taxes. The tax calculations will also be incorrect if a bookkeeper presents erroneous statements.
The South African Revenue Service (“SARS”) can penalize any business with faulty and incorrect tax submissions. The penalties can be between 5% and 200% of the unpaid taxes. In addition, SARS can impose an understated penalty.
Professional accountants are trained and versed in tax legislation, calculation, and assessments. All businesses should use a trusted tax professional for their tax calculations.
Not all tax practitioners are professional accountants, but all professional accountants can register as tax practitioners. All accountants that register with the South African Institute of Professional Accountants (“SAIPA”) have sufficient education and training to register as tax practitioners.
A tax practitioner is a trusted representative for your taxation queries. A tax practitioner is someone that can submit tax returns on behalf of someone else. They know what forms and processes to follow for tax-related questions with SARS.
Every business must ensure that its accounting and taxation are accurate, complete, and up to date. A skilled and experienced professional accountant is a business partner for your accounting and taxation needs.
Incorrect and inaccurate financial reporting can have serious adverse consequences, such as underpayment of taxes, resulting in hefty fines and penalties from SARS.
Before you use an inexperienced and unregistered bookkeeper for your accounting and taxation needs, consider the implication of inaccurate reporting!
If you want to run your business with peace of mind, more time, professional support, and much-needed clarity, please contact Vos Accounting and Tax Services.
By partnering with Vos Accounting and Tax Services, you are partnering with a registered Professional Accountant (SA) and registered Tax Practitioner to take over your accounting and taxation responsibilities.
You can BOOK A 30-MINUTE CONSULTATION call with us AT NO COST TO YOU. We help businesses grow by providing much-needed accounting and taxation support.
Contact Vos Accounting and Tax Services for more information on how we can help you and your business.