Following on from our recent post: SARS Requirements for 2025: What Your Business Needs to Know – here’s a specific look into Maintain Audit-Ready Records
Keeping audit-ready records isn’t just about compliance; it’s a way to keep your business organized, transparent, and prepared for any financial scrutiny. Whether you’re preparing for a potential SARS audit or simply want to streamline your financial management, maintaining accurate records is essential.
At Boatwright Consulting, we help our clients stay organized and audit-ready all year round. Here’s what you need to know about building and maintaining a reliable system for recordkeeping.
1. Prioritize Consistent Recordkeeping Practices
Maintaining audit-ready records starts with consistency. It’s easy for recordkeeping to become a low-priority task, but falling behind can lead to errors, omissions, and even penalties during an audit.
- Daily Entries: Ensure that all transactions, whether income, expenses, or assets, are recorded accurately as they occur.
- Digital Tracking: Using digital accounting software simplifies recordkeeping, reducing the risk of misplaced records and enhancing access when needed.
At Boatwright Consulting, we provide our clients with the tools and guidance needed to implement effective and reliable recordkeeping systems.
2. Organize Records by Category and Date
SARS requires businesses to retain specific financial records, such as invoices, bank statements, and payroll data, for at least five years. Categorizing and dating these documents makes it easier to retrieve information quickly during an audit.
- Categorize by Type: Group documents into categories such as income, expenses, assets, and liabilities.
- Use Filing Labels and Digital Folders: Consistent labeling and well-organized digital folders save time and reduce stress when SARS requests specific documents.
We work closely with clients to implement structured filing systems that keep everything in order, whether physical or digital.
3. Regularly Reconcile Financial Accounts
Reconciling your accounts means matching internal records with bank statements and other external documents to ensure accuracy. Reconciliation is a proactive way to catch discrepancies early.
- Monthly Reconciliation: Reconciling accounts monthly minimizes the risk of errors building up over time.
- Cross-Check All Payments: Double-check that payments received and made match invoices and statements to avoid gaps in your records.
Boatwright Consulting offers monthly reconciliation services that keep your records up to date and audit-ready, making audits a far smoother process.
4. Keep Clear Supporting Documentation
When SARS conducts an audit, it may request supporting documentation to verify specific entries. Ensuring that every transaction has supporting evidence is crucial.
- Invoices for Revenue and Expenses: Retain all client invoices and receipts for expenses.
- Contracts and Agreements: Contracts related to business activities or sales are critical supporting documents in case of questions about large transactions.
- Payroll Records: Maintain payroll data, including payslips, tax deductions, and UIF contributions.
We help our clients ensure that every transaction is backed by the necessary documentation, making it easy to satisfy SARS requirements.
5. Embrace Cloud-Based Solutions for Accessibility
Cloud-based accounting platforms allow you to store, access, and manage your records securely from anywhere. Not only does this make information retrieval easy, but it also enhances data security.
- Automated Backup and Security: Cloud solutions typically offer automatic backup, reducing the risk of data loss.
- Easy Access and Sharing: Cloud platforms allow you to share information with your accountant quickly, especially useful during an audit.
Boatwright Consulting can recommend and manage cloud-based accounting systems tailored to your needs, making data accessible, secure, and audit-ready.
Why Boatwright Consulting?
With Boatwright Consulting as your accounting partner, maintaining audit-ready records becomes a simple, streamlined process. Our team ensures that your records are compliant, organized, and always ready for review.
Let us help you create an audit-ready system that fits your business needs. Contact Boatwright Consulting today for expert guidance and comprehensive support in managing your financial records!
At Boatwright Consulting, we specialize in providing personalized tax advice and solutions tailored to your business needs. Whether you’re starting a new venture or looking to optimize your current tax position, our expert advisors are here to help.
For professional guidance on maximizing your tax deductions as a self-employed business owner, contact Boatwright Consulting today. Let us empower you to navigate the complexities of tax laws with confidence and achieve your financial goals.
Disclaimer: This blog post is intended for informational purposes only and should not be construed as professional tax advice. Individual circumstances may vary, and consultation with a qualified tax advisor is recommended for personalized guidance. Boatwright Consulting is a Chartered Accounting Firm in East London, RSA.
