With tax filing season under way, small businesses need to ensure they have sufficient cash flow to make the necessary provisional tax and assessed tax payments.
Not having enough working capital is the biggest concern for small businesses wanting to remain tax compliant. It is tempting to use money owed to the South African Revenue Service (Sars) to bridge shortfalls between invoicing clients and receiving payments, but this is not advised. Proper financial preparation needs to be put in place.
SMEs, like all businesses, need to comply in full with their tax obligations.
Fintech can improve SME tax compliance. By automating the administrative work needed for tax returns, businesses find it easier to stay on top of the requirements put forward by Sars.