Key points
- Separate business and personal finances.
- Record transactions regularly — not just at year-end.
- Reconcile your bank accounts every month.
Why good records matter
Accurate books are the basis of reliable tax submissions, financial statements and business decisions. They also make it far easier to respond to SARS queries and to apply for finance.
A simple monthly routine
- Capture all sales and purchase invoices.
- Reconcile each bank account to its statement.
- Follow up on unpaid customer invoices.
- Review what you owe suppliers and when it is due.
- Keep receipts and supporting documents in one place, paper or digital.
Understanding your reports
Three reports tell most of the story: the income statement (profit or loss), the balance sheet (what you own and owe) and the cash flow (where money came from and went). Reviewing them monthly helps you spot problems early.
Year-end
At the end of your financial year, your records are used to prepare annual financial statements and tax returns. Well-kept books mean a quicker, less costly year-end process.
General information only. This guide is not professional advice. Tax and statutory requirements change — confirm current rules and dates with SARS or CIPC, or speak to us about your situation.