Managing Your Own Business: Managing Your Finances | Western Cape Government

Managing Your Own Business: Managing Your Finances

Record Keeping

What Are Records?

  • Business or Vendor's books detailing all accounting matters
  • Computer Printouts
  • Charts and codes of account, accounting instruction manuals and system and programme documentation, which describes the accounting system used by the vendor or business
  • Supporting documentation and vouchers

What Are Supporting Documents and Vouchers?

The business is required to keep all records of all goods and services supplied by or to him in sufficient detail to enable the Receiver of Revenue to readily identify the goods or service and the suppliers or their agents.

What types of documentation can be kept?

  • Invoices
  • Tax invoices
  • Credit notes
  • Debit notes
  • Statements
  • Bank Statements
  • Till Slips
  • Receipts
  • Deposit Slips
  • Paid cheques
  • Stock Sheets
  • Any other documents which verify transactions or entries into any book or account
  • List of creditors and debtors for a minimum period of 5 years
  • Documentary proof acceptable to the Receiver of Revenue substantiating the vendor's entitlement to apply the zero rate to supplies of goods or services made by him.
  • All records related to items that are imported.

How Long Must Records Be Kept?

Records in book form need to be kept for a minimum period of 5 years from the date of the last entry in the book.

Records not kept in book form, such as documents and vouchers, must be maintained for a minimum period of 5 years from the date of completion of the transaction, act or operation to which they relate.

Failure To Keep Records

If you do not keep your account books or records as stated, it is an offence in terms of the VAT Act. This offence is punishable with a fine and possibly a fine with imprisonment.

What Books Are Kept in a Basic Bookkeeping System?

  • Source documents
  • Journals
  • Cash book
  • Petty cash book
  • Purchase journals
  • Sales journal
  • Sale return journal
  • Debtors ledger
  • Salaries and Wages
  • General ledger
  • Trial balance
  • Income statement
  • Cash flow statement
  • Balance sheet
  • Purchases journal
  • Purchase return journal
  • Creditors ledger

Source: SARS VAT 404 Guide for Vendors

The content on this page was last updated on 8 August 2014