
Originally Posted by
jodyhollis
The best way to deal with this situation is to pick a start date, usually 1 March of the current year, which is the start of the tax year. Then make a list of assets: cash at bank, inventory on hand, assets (furniture, fittings, plan & machinery, motor vehicles etc) used in the business: liabilities: overdraft, loans, leases etc. Once you have balance sheet items, then move to monthly receipts and payments, which should be easy to pick up from bank statements. There will also be petty cash payments and expense claims (incurred in private expenses to be reclaimed from the business). This is the approach used by many auditing firms where there are few records. On the recording side, consider using Wave and Zoho Books, which are free online software, but are very powerful for small business. On the tax side, SARS usually accept estimates of Profit and Loss in the interest of ensuring compliance in the absence of accounting records, but I would suggest that you seek guidance from a Tax Practitioner. Hope this helps. Contact me if you need more help.
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