It is the process that counts
As with everything in life, the accounting (and tax and especially payroll) side of you business is merely a process to be followed. It’s certainly not a once-off job or something you can do while you are watching TV or doing the dishes.
Your business has a process(es)
You have them without knowing it. This would start with sales then you would provide a product or service and then get paid, or your process may include upfront payment or deposit before the product or service is given to the client.
You can’t expect them to pay for a product or you don’t know what they want. How could you pay for your groceries before you have decided what you want?
Similarly, you won’t just pay SARS a random amount for your company income tax hoping that it is correct. What happens if you don’t make a profit for some reason, for example, a global pandemic or natural disaster occurs or your suppliers choose down.
Here are a few steps in the process that you should be following, details may vary :
This would include invoices from suppliers, fuel slips from a driver you have, bank statements from all bank accounts you have.
Top tip: have a system which allows you to have these in one place. Time wasted looking for documents can add up quickly when it is preventable.
All this information is now ready to be recorded. Most commonly of its done by a computer accounting package. It does not have to be but it is highly recommended.
Top tip: these packages don’t have to be big or expensive or even complicated! We can help you here, contact us for advice.
The sales and expenses will be recorded in the same system.
Once this is finished, most of the groundwork is done. You can now use that information to create payment plans for suppliers, casual staff, motor vehicles or whatever you need to pay. This is the “running” of the business day-to-day.
Can I get someone to do this?
Contrary to popular belief, this information does not need to be done by yourself. You also do not have to pay someone full time either. You can outsource any or all of it to someone.
We can be that company. We specialise in this process and can provide you with up to date information to run your business more effectively while providing you with additional tips and tricks and knowledge about what you need to know – especially with your business. It is your business after all.
- Please look at our accounting services for more details and contact us!