The end of February also marks the end of the financial year for many South African companies and taxpayers. This time of year is not only stressful as it will reveal the financial success or failure of a company but also because of the administrative burden, it can pose on those who are not well prepared.
So just how do you prep? Here are some tips to help you effectively manage FYE in your business’s finances and personal finances:
Make sure that your paperwork is up to date
Make sure that your books are balanced each month during the course of the year to save yourself from a lot of accumulated admin once the financial year end arrives. Staying on top of things during the course of the year can also help improve the accuracy of your books. Some records that need to stay organised during the year include:
- Receipts for expenditures
- Bank statements
- Other records concerning tax returns
You might want to incorporate this one into your New (Financial) Year resolutions if you slacked in 2020.
Prioritise tax planning
One of your main priorities during this time should be to plan your taxes as the end of the financial year is aligned with the government’s tax year. Tax planning involves analysing the financial situation in your business or personal finances to ensure tax efficiency. Here are a few ways to lessen your tax liability:
- Invest in tax-free savings
- Invest in a venture capital company
- Donate to public benefit organisations and claim a tax deduction
Evaluate your financial plan for the new financial year
The end of the financial year allows businesses to analyse their financial performance quantitatively. This can empower businesses to spot trends that can optimise results and drive profits. Analysing your business’s results also allows you to create more accurate financial budgets.
We know that the financial year-end and everything that comes with it can be very stressful for businesses, however with the expertise and knowledge of the Enslins team, this nightmare can turn into a dream. Click here to learn more about the services that we offer on tax matters.