Experity Accounting https://experity.co.za Tue, 03 Nov 2020 09:57:51 +0000 en-US hourly 1 Your 2020 tax write-off cheat sheet https://experity.co.za/your-2020-tax-write-off-cheat-sheet/?utm_source=rss&utm_medium=rss&utm_campaign=your-2020-tax-write-off-cheat-sheet Mon, 02 Nov 2020 09:59:12 +0000 https://experity.co.za/?p=1366 The 2020 tax season is upon us, and after the year we’ve all had we’re sure you’re looking forward to finding a way to increase the value of your tax return as much as possible.

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Your 2020 tax write-off cheat sheet

The 2020 tax season is upon us, and after the year we’ve all had we’re sure you’re looking forward to finding a way to increase the value of your tax return as much as possible. To make things a little easier, we’ve compiled a handy tax write-off cheat sheet you can reference while you get your paperwork in order prior to e-filing or handing it over to your accountant.

This is a list of costs that are deductible, according to SARS:

Retirement annuity fund contributions

Personal contributions towards retirement funds are deductible for tax up to a limit of 27,5% of the greater of your taxable income or remuneration (to a maximum of R350,000 per year). Contributions to pension funds and provident funds are likewise deductible – check with your financial advisor for more info in this regard.

Medical expenses

If you contribute to a medical aid, you will receive a fixed monthly tax credit for each member featured on your policy. SARS calls this rebate the ‘Medical Schemes Fees Tax Credit’ – it is calculated as a flat rate per month.

Wear-and-tear

In respect of certain assets, wear and tear on personal assets may also be claimed, e.g. if you use personal devices like laptops or cell phones for work. The deduction is based on the base cost of the asset, as well as the usage split and the number of years you’ve owned it. Be ready to provide a letter from your employer to confirm that this deduction is in fact allowed.

Donations to approved charitable bodies

Charitable contributions to registered entities are deductible. These bodies will normally supply you with a tax certificate to this effect. If they don’t do so of their own accord, make a formal request.

Certain home office expenses

Many people who have previously never worked from home had to do so under COVID-19 lockdown regulations in the year. As such, there are a lot of questions about home office expense claims. The answer is, yes, there are certain home office expenses that can be claimed. You can read more here.

Travel claims, legal costs (under certain qualifying circumstances) and commission expenses are also on the table – so check in with your financial advisor on those!

Keep these South African tax write-offs in mind while you prepare your paperwork to reap the benefits of the sound financial choices you made in the 2019/20 tax year.  In the meantime, feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to help you make sense of all the accounting mumbo-jumbo.

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How to stay on top of your SME’s finances in 2020 and beyond https://experity.co.za/how-to-stay-on-top-of-your-smes-finances-in-2020-and-beyond/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-stay-on-top-of-your-smes-finances-in-2020-and-beyond Mon, 02 Nov 2020 09:49:03 +0000 https://experity.co.za/?p=1357 This year has not been kind to South African SMEs. Small to medium enterprises took a big knock due to the economic impact of the lockdown measures that were put in place to curb the spread of the COVID-19 pandemic.

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How to stay on top of your SME's finances in 2020 and beyond

This year has not been kind to South African SMEs. Small to medium enterprises took a big knock due to the economic impact of the lockdown measures that were put in place to curb the spread of the COVID-19 pandemic.

However, all hope is not lost – there are plenty of silver linings to be found. Now that life has returned to some semblance of ‘normal’ as we knew it before, small business owners can get back to growing their enterprises. In fact, there are quite a few people who saw a gap in the market and started brand-new side hustles during the pandemic.

In short – now is the time to get those financial horses back in the metaphorical stable before they run completely wild. Here are a few top tips to stay organised in your business finances post-COVID:

1. Set up a business account

It may seem convenient to use your personal account for your business, but it actually makes things more difficult in the long run. Take the time to set up a separate account for business income and expenses so you can get a clear idea of the profitability of your venture. Pay yourself a ‘salary’ from this account; this way you won’t be ‘living out of the till’ (never a good idea).

2. Get to grips with your invoicing

If you want to get paid, you need to invoice and follow up on payments – it’s as simple as that. Develop a system that works best for you, and consider investing in a well-oiled app like this one or this one that takes the manual hassle out of sending off your payment missives each month.

3. Find an accountant you trust

Small businesses don’t stay small forever if you do things right. Keep an eye out for an accountant who understands your vibe, and that of your business, so you are able to call in some professional help once your enterprises scales to the point where you need some expert guidance. It’s better to be prepared than to be caught off-guard.

Following these guidelines will help you to stay on top of your SME’s finances in 2020 and beyond. Keep an eye on the blog in the coming weeks and months for more tips on money matters from the Experity experts. In the meantime, feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to guide you through the unchartered waters of being a financial grownup.

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Introducing Wijn Bar https://experity.co.za/introducing-wijn-bar/?utm_source=rss&utm_medium=rss&utm_campaign=introducing-wijn-bar Fri, 30 Oct 2020 11:54:04 +0000 http://elmarievanzyl.co.za/experity/?p=809 Wijn Bar is a stunning boutique wine bar nestled in the historic town of Paarl. There they have brought a dream to reality by being the central point between the consumer and the winemaker.

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Introducing Wijn Bar

Wijn Bar is a stunning boutique wine bar nestled in the historic town of Paarl. There they have brought a dream to reality by being the central point between the consumer and the winemaker.

They believe that the main things that distinguish Wijn is that through everything they do, they aim to break down the barriers of wine and they aim to make wine more accessible. The layout of the space, the fact that you can taste, drink and buy all the wines on their menu, the time they spend on finding amazing and hard to find wines, that you can come to Wijn and find new wines on the menu every week and that you can meet and chat to winemakers about their wine, whilst learning something new – they believe all of this works together to deliver a truly unique experience.

They are just wine lovers that want to create a space and community for other wine lovers!

Experity Financial Services | Wijn Bar

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5 Interesting things you probably didn’t know about accounting https://experity.co.za/5-interesting-things-you-probably-didnt-know-about-accounting/?utm_source=rss&utm_medium=rss&utm_campaign=5-interesting-things-you-probably-didnt-know-about-accounting Thu, 15 Oct 2020 09:55:55 +0000 https://elmarievanzyl.co.za/experity/?p=1258 If you happen to think that accounting is an absolute snooze fest, you are certainly not alone – there are plenty of accounting memes out there that infer as much. However, at Experity, we happen to disagree.

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5 Interesting things you probably didn’t know about accounting

If you happen to think that accounting is an absolute snooze fest, you are certainly not alone – there are plenty of accounting memes out there that infer as much. However, at Experity, we happen to disagree. In fact, we believe that if people really took the time to understand the intricacies of our rather complicated industry, they’d be rather impressed at what they found…

So, to get you a little more excited about accounting this tax season, we thought we’d share a few interesting facts about the industry you probably didn’t know:

We decide who gets the Oscars!

That’s right – multinational accountancy firm PricewaterhouseCoopers is responsible for counting and tallying the votes (and keeping the results a secret) for the Academy Awards each year. You’re welcome.

Leonardo da Vinci was taught by the OG accountant

Italian accountant and mathematician is often referred to as the father of modern accounting. He also happens to be one of the teachers who taught the most famous Italian polymath of the High Renaissance who is widely considered one of the greatest painters of all time – Leonardo da Vinci.

Bubble gum was invented by an accountant

Walter E Diemer was working as an accountant for American company Fleer Chewing Gum Co. in 1928 when the upper echelons decided they wanted to trim costs to boost their bottom-line. Diemer started to experiment with a new chewing gum base in his free time in order to find a way to produce this raw product in house. This is how he accidentally invented bubble gum!

Accountants brought down Al Capone

Alphonse Gabriel Capone, also known as ‘Scarface’, was an American gangster and businessman who attained notoriety during the Prohibition era as the co-founder and boss of the Chicago Outfit. Authorities found it impossible to pin his crimes on him in a way that would allow them to take him into custody, until forensic accountant Frank J. Wilson reviewed 2 000 000 documents in 1920 and found a way to get Al Capone for tax evasion.

Clay tokens paved the way for modern currency

Ancient accountants would use clay tokens to keep track of animals and food stuffs long before modern coins and currency came into play.

There you have it – 5 interesting things you probably didn’t know about accounting. Feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to help you make sense of all the accounting mumbo-jumbo.

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3 Ways to get your finances in post-lockdown shape https://experity.co.za/3-ways-to-get-your-finances-in-post-lockdown-shape/?utm_source=rss&utm_medium=rss&utm_campaign=3-ways-to-get-your-finances-in-post-lockdown-shape Thu, 08 Oct 2020 12:17:57 +0000 http://elmarievanzyl.co.za/experity/?p=854 It’s safe to say none of us expected 2020 to rip the rug from under us quite as dramatically as it’s done so far. The impact of the COVID-19 pandemic and the resultant lockdown protocols put in place by world governments has had an immense impact on the global economy.

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3 Ways to get your finances in post-lockdown shape

It’s safe to say none of us expected 2020 to rip the rug from under us quite as dramatically as it’s done so far. The impact of the COVID-19 pandemic and the resultant lockdown protocols put in place by world governments has had an immense impact on the global economy.

According to the World Bank, it’s likely that global GDP for 2020 will contract by at least 5.2%, leading to the deepest global recession in decades. In the US alone, 20 million+ people have lost their jobs; locally it is estimated that approximately three million people lost their jobs over the lockdown period. This represents an 18% decline in employment.

Those are some seriously worrying stats right there. So, what can the average South African do to get their finances in post-lockdown shape? In short – take a breath, take a beat, and take stock.

In uncertain times like these, the absolute best thing you can do for your finances (and your overall sanity) is keep your focus field small and control the things that are within your control. If you want to relook your finances, we recommend that you start by:

Going over your new budget

Since lockdown hit in March, most of us have taken measures to curb our spending. Whether this means forgoing regular wardrobe updates, making more food at home, or cutting down on expenses like dog grooming and instead doing it yourself, these little savings do make a difference.

Take some time to sit down with your bank statements and do a proper ‘money in’ VS ‘money out’ breakdown to see where you stand. If you find any more ways to save, implement it immediately.

Getting your 2020 tax return sorted ASAP

The individual income tax return filing dates for 2020 were pushed out to between 1 and 16 September, which means you still have time to get your act together.

TOP TIP: Did you know that you may be eligible to claim tax back if you’ve been working from home during lockdown? Read more here.

Setting goals for the rest of the year

If you’ve been wanting to relook your savings and investment portfolio, now is a great time to do so. Having a long-term plan for your financial future makes all the difference. If you don’t quite know where to start, it always helps to consult with an accredited professional who can provide you with impartial advice.

There you have it – three steps you can take to regain control of your finances in post-lockdown South Africa. Feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to help you pave the way to a more prosperous future.

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