SARS Record-Keeping Checklist for Small Businesses in South Africa

Good record keeping is one of the simplest ways to make accounting and tax compliance easier. It helps a business explain what was declared on returns, answer SARS queries and prepare financial information more efficiently.

SARS states that taxpayers generally need to keep relevant records for five years from the date a return is submitted. Longer retention can apply where a return has not been submitted, or where an audit, investigation, objection or appeal is still open.

What records should a small business keep?

• Sales invoices and customer records
• Supplier invoices and expense receipts
• Bank statements and deposit records
• Payroll-related records where applicable
• Contracts and supporting business documents
• Accounting records, ledgers and reconciliations
• Copies of tax returns, assessments and SARS correspondence

Keep records organised, not only stored

Keeping documents is only part of the job. Records should be organised so they can be matched to transactions and retrieved when needed. A consistent digital filing structure can make monthly bookkeeping, annual reporting and tax work significantly easier.

Use SARS eFiling to monitor your tax position

SARS eFiling allows taxpayers and businesses to submit returns, make payments, view outstanding returns, access tax compliance status and submit supporting documents for certain SARS processes.

Why bookkeeping and tax compliance work together

Tax compliance becomes more difficult when the underlying bookkeeping is incomplete. Keeping the books current throughout the year can reduce the rush of trying to reconstruct records only when a return is due or SARS requests information.

For the latest official requirements, see the SARS record-keeping guidance.

Need help getting your records and SARS affairs organised?

Aquinas Business Consulting provides tax and SARS compliance support in Johannesburg together with bookkeeping and business administration services. Call or WhatsApp 063 324 5748 or 062 466 3758, or contact our team.

This article is general information and does not replace advice based on your specific tax circumstances.