FREQUENTLY ASKED QUESTIONS

Bookkeeping Services FAQ provides clear and concise answers to your most common questions about PLM Accounting’s comprehensive bookkeeping solutions. We recognize that managing finances can be challenging, so we have created this FAQ to help you understand our services better. Whether you are curious about our pricing structures, service offerings, or how we ensure compliance with tax laws, you’ll find the information you need here. Additionally, our FAQs demonstrate how PLM Accounting supports your business’s financial health, enabling you to focus on what you do best—building and growing your business. By addressing your concerns upfront, we aim to foster transparency and trust, ensuring you make informed decisions with confidence.

What is the difference between bookkeeping and accounting?

Bookkeeping involves the day-to-day recording of financial transactions, such as tracking income, expenses, and managing ledgers. Accounting, on the other hand, involves a broader analysis, including preparing financial statements, tax planning, and ensuring compliance with South African accounting standards. At PLM Accounting, we provide both services to ensure your financial management remains seamless and compliant.

How often should my company update its financial records?

To stay compliant with South African tax laws and ensure accurate reporting, it’s recommended that businesses update their financial records weekly or monthly. This allows for accurate cash flow management, timely tax submissions, and effective budgeting. At PLM Accounting, we offer comprehensive services that include regular updates to keep your records in order.

What is VAT, and how do I know if my business needs to register for it?

In South Africa, businesses are required to register for VAT if their taxable supplies exceed R1 million in any 12-month period. Voluntary registration is also an option if your turnover exceeds R50,000 in a 12-month period. PLM Accounting can assist with the registration process and ensure your VAT returns are submitted accurately and on time.

How does the South African tax year affect my business’s financial planning?

The South African tax year for companies runs from March 1 to February 28/29. Proper financial planning should consider this cycle to align budgeting, provisional tax payments, and annual returns. At PLM Accounting, we ensure your financial planning is in sync with the tax calendar, minimizing tax liabilities and maximizing compliance.

What are the mandatory SARS submissions my business must make?

Businesses in South Africa must submit several key documents to SARS, including EMP201 for PAYE, UIF, and SDL (monthly), VAT returns (bi-monthly), and provisional tax returns (twice annually). Non-compliance can result in penalties and interest. PLM Accounting handles all your SARS submissions, ensuring accurate and timely filing.

What is EMP201, and how do I submit it?

The EMP201 is a monthly submission detailing employee tax (PAYE), Unemployment Insurance Fund (UIF), and Skills Development Levy (SDL) deductions. Submission is done via SARS eFiling. PLM Accounting can manage these submissions, ensuring accuracy and timeliness, helping your business avoid non-compliance penalties.

What payroll services do I need to stay compliant in South Africa?

Payroll compliance in South Africa includes an accurate calculation of PAYE, UIF, SDL, and submitting the EMP201 returns monthly. Additionally, businesses must issue IRP5 certificates annually and submit EMP501 reconciliations bi-annually. PLM Accounting uses third-party payroll systems to manage all these functions efficiently.

How do I register my company with CIPC?

Registering a company with the Companies and Intellectual Property Commission (CIPC) involves choosing a business name, submitting the necessary documents, and paying the registration fee. PLM Accounting assists with CIPC registrations, ensuring that your business complies with all legal requirements and that the process is completed quickly.

What is Workman’s Compensation, and does my business need it?

Workman’s Compensation, governed by the Compensation for Occupational Injuries and Diseases Act (COIDA), is mandatory for employers in South Africa. It provides compensation for employees injured or who contract diseases while performing their jobs. PLM Accounting can manage your registration and ongoing compliance, ensuring you meet all COIDA obligations.

What are the different types of accounting?

Different types of accounting include:

Financial Accounting: Records, summarizes, and reports business transactions over a time period in an organization. This type is essential in both the private and public sectors.
Administrative Accounting: Focuses on the administrative aspects of the company and assesses objectives while improving strategies.
Tax Accounting: Registers and prepares reports related to tax returns and payments to the public treasury.
Cost Accounting: Typically used in industrial sectors, it analyzes unit costs in production, sales, and the entire production process.
Management Accounting: Has a broader scope than cost accounting, recording all economic and financial data for informed decision-making.

PLM Accounting provides tailored accounting solutions based on your business needs.