The end of the month is a useful point for small businesses to match the money recorded in their books with what actually moved through the bank account.
Start with sales. Compare every invoice issued during August with deposits received, and mark invoices that remain unpaid. This gives the business a clear debtors list for September and helps prevent an overdue account from disappearing into an email inbox.
Next, check expenses. Match supplier invoices and receipts to each payment on the bank statement. A payment without supporting paperwork should be flagged while the transaction is still fresh. Duplicate payments, incorrect amounts and missing credit notes are easier to resolve before the next reporting cycle begins.
Keep a clean record trail
The South African Revenue Service says businesses should retain records such as invoices, receipts, sales slips and bank deposit slips. These documents support tax returns and may be requested during verification or an audit. SARS generally requires records to be kept for five years, although longer periods can apply in some circumstances.
VAT-registered businesses should also check that tax invoices contain the prescribed information. SARS says a vendor must issue a tax invoice within 21 days of making a taxable supply. The requirements differ between a full and an abridged tax invoice, so businesses should check the current SARS guidance for the transaction concerned.
A practical month-end routine
A short review can be split into four steps: reconcile the bank account, update the unpaid-invoice list, file supporting documents, and note any transaction that needs clarification. Keep digital copies in a consistent folder structure, with dates and supplier or customer names that make documents easy to retrieve.
The purpose is not to produce a perfect set of annual accounts in one sitting. It is to close August with fewer unexplained transactions and a reliable starting point for September. Businesses with unusual transactions or uncertainty about their tax obligations should confirm the treatment with SARS or a qualified tax practitioner.
