Why is it important to get your accounting backlog up to date

We meet a lot of companies that contact us for tax and accounting packages for their businesses. When we look at their work, we notice that the company has traded before, but the accounting has not been kept up to date. This usually occurs because business owners do not always realize the importance of keeping their accounting records up to date, and they wait until the company is more stable before they get the assistance of accountants to assist with this function.

What we suggest in cases like this, is for the client to do an accounting backlog to get their records up to date so their tax returns can be submitted for the period that it was not done, and that their annual returns at CIPC can be filed.

Failing to do this, you will reflect as non-compliant with SARS, which will incur additional costs to your company in the form of penalties. Not filing your annual returns at CIPC can also cause your company to be deregistered, in which case a very long process must be followed to get the company active again.

Doing your backlog accounting will ensure that you have the correct figures to file your returns and keep you in good standing with SARS and CIPC. It will also provide you with accurate financial information to ensure that you make sound financial decisions based on the actual financial position of your company. This will also render a base to use for future planning.

If you have not been keeping your accounting up to date, you can contact us to provide you with a tailor-made quotation to get your accounting and returns up to date.

Allow us to help you, because you cannot grow your company if the foundation has not been secured.