The end of the tax year has come and gone, but the work isn’t over for business owners. Now is the time to wrap up your finances, ensure compliance with SARS, and start planning for the new financial year. Whether you’re a sole proprietor, freelancer, or running a company, staying ahead of your tax obligations can save you time, money, and unnecessary stress.

If you follow the steps below, you should breeze through this tax season!

Step 1. Finalise your financial records for the past financial year

Accurate record-keeping is essential for smooth tax filing.

  • Accurately record all income and expenses. Double-check that all sales, invoices, and payments have been captured correctly in your accounting system.
  • Reconcile bank statements. Make sure your bank transactions match your financial records and there are no missing entries. The bank balance as per your bank statement, should match your bank balance as shown in your accounting records.
  • Clear outstanding invoices. If customers owe you money, now is the time to follow up on payments before finalising your accounts. Be sure to review your customer invoices for possible bad debts and make provisions for possible non-payments by customers.
  • Confirm payroll records. If you have employees, ensure that all salaries, UIF, PAYE, and other deductions have been recorded correctly.
  • Categorise expenses properly. Misclassified expenses can lead to errors in your tax return, so ensure everything is in the right place.
  • Review you fixed assets register. Ensure that all assets shown are accurate and a true reflection of your physical assets.
  • Conduct inventory counts.  Inventory counts should be done at your financial year end. These amounts should then be agreed to your financial records. Also, while doing an inventory count, make sure to review your physical inventory for possible obsolete and damaged stock.
  • Loans payable and Trade Creditors. Obtain statements from creditors and from third parties where the business has loans. These statement balances should be reconciled to your accounting records. Not only does this ensure compliance, but it also gives you a clearer picture of your business’s financial health.

Step 2. Submit your annual returns on time

Many business owners make the mistake of delaying tax submissions, which can result in penalties and interest charges. Here are some key SARS deadlines to keep in mind:

  • Provisional Tax (IRP6) – As a provisional taxpayer, ensure that your second payment has been made. If you underpaid, you might face additional tax liability when filing your final return. A possible third provisional tax payment should be considered in the case that the first and second was not sufficient.
  • Company Tax Return (ITR14) – All companies must file this return within 12 months of their financial year-end.
  • VAT Reconciliations (VAT201) – If your business is VAT-registered, submit all VAT returns on time and ensure your VAT201 reconciliations align with your financial records.
  • EMP501 Reconciliation – Submit your EMP501 reconciliation to accurately report PAYE, UIF, and SDL payments to SARS. Late submissions may affect employees’ tax compliance status.

Tip: SARS has been increasing its enforcement on late or incorrect submissions, so being
proactive can save your business from unnecessary penalties.

Step 3. Maximise your tax deductions and allowances

Many businesses pay more tax than they need to simply because they aren’t aware of all the
deductions and allowances they qualify for. Here are some common tax-deductible expenses to
consider:

  • Business-related travel – If you use a car for business purposes, you can claim a portion of fuel, maintenance, and insurance costs. Keep a logbook to track business mileage.
  • Home office expenses – If you work from home, you may be able to deduct a portion of your rent, utilities, and internet costs. SARS has strict requirements, so consult with your accountant.
  • Depreciation on assets – Equipment, vehicles, and office furniture lose value over time, and SARS allows businesses to claim this as a tax deduction.
  • Training and skills development – If you’ve paid for employee training or up-skilling and registered with your relevant Seta, those costs may be deductible under Section 12H of the Income Tax Act.
  • Medical contributions (for employees) – Businesses offering medical aid subsidies or other fringe benefits may deduct this as a business expense.
  • Renewable energy investments – Under Section 12B, businesses that invest in solar panels and renewable energy can claim accelerated depreciation benefits. Now is also a good time to explore Section 12B or Section 11D incentives if your business invests in renewable energy or research and development.

It is always best to consult with your accountant, this will save you time and money. A tax professional can help identify ways to legally reduce your tax liability. Read more about tax deductions in Part One and Part Two of Tax-Saving Strategies for SMEs in South Africa

Step 4. Prepare for financial statements and audits

Depending on your business’s size and structure, you may need to prepare audited financial statements or reviewed financials. Here’s what to consider:

  • Do you need audited financial statements? The law requires public companies, state-owned entities, and certain private companies with a high public interest score (based on turnover, employees, and other factors) to undergo an external audit.
  • Who needs independently reviewed financials? Companies that don’t require a full audit but still need financial oversight may need an independent review.
  • Who needs to keep financial records? If your company does not require a full audit but still needs financial oversight, an independent review may be necessary.

If you are unsure whether your business requires audited statements, an accountant can provide clarity.

Step 5. Plan for the new tax year

Instead of scrambling at the last minute next tax season, take a proactive approach by implementing smart financial habits now:

  • Schedule quarterly tax check-ins. Regular tax planning helps avoid surprises at year-end.
  • Automate tax savings. Set aside money each month for tax obligations to avoid cash flow issues when payments are due.
  • Update your business strategy. Review pricing, expenses, and financial goals to ensure a profitable year ahead.
  • Keep up with SARS regulatory changes. Tax laws evolve, so staying informed can help your business remain compliant.

We know tax season can be overwhelming, but you don’t have to do it alone. aXia Consulting is here to take the stress out of tax compliance, financial planning, and business growth strategies.

– Need help filing your tax returns?
– Want to make sure you’re not overpaying on taxes?
– Looking for a proactive accountant to support your business year-round?

Get in touch with us today! Let’s make tax season stress-free and start the new financial year on the right foot.

Nadia Gabriel

Small business advice

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