Accounting and tax services are considered by many to be an expensive and unnecessary cost. Although this may seem so, it certainly is not the case.
The accounting side of the business is almost as important as any other part. Why? Consider the invoices that you send out. These are part of the accounting function. The invoices you have to pay to suppliers, service providers etc and payments of both the above. All part of the accounting function.
Any of the ‘dreaded paperwork’ forms the accounting function. Without this paperwork, where would your business be? In fact, if you own a company, that papers that say you own it, say you own it so your business would be open if paperwork was not there.
Furthermore, the accounting function tells you how your company is performing. A profit, a loss etc. It can show you what you are doing right (or wrong) and sometimes if theft is occurring. Needless to say more about how crucial the accounting function can be.
Nobody likes paying tax but it is hpw the country gets the money to keep running. The south African Revenue Services (SARS) is the government agency that handles this side of things. Baiscally, SARS collects all the money. Sometimes, it pays it out too, in the form of refunds.
At the end of the accounting function startes the tax function. This is where the entity (CC, company, trust etc) declarea its activity for the period. The result being a profit or loss is submitted to SARS in the tax return, and it is assessed. If tax is payable, it has to be paid over.
This process may look simple but it is certainly not easy. An accounting firm can help you through these processes so you don’t fall behind.
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