No I am not an accountant, you said that the error was immaterial, the question is to who?
Every business who is VAT registered must present a VAT report to SARS. All VAT figures must balance at year end when doing a balance sheet, which an auditor then has to sign off. If the figures you present toSARS, and the audited figures donot match, this raises a flag, and requires scrutiny to identify the reason. So small errors are material to a business.
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
You'd think. I've had big companies give me grief on smaller VAT calculation differences on a single invoice though.
And it can really add up across a year under the right (or should that be "wrong") circumstances. Imagine the Justloadit rounding example where that is your only product!
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Justloadit (01-Nov-16)
So, would it be better / safer to use all figures with 4 digits, instead of rounding off to the nearest 2 digits?
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
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