The Financial Year-End (FYE) for business in South Africa is here. If you haven’t planned it yet, don’t worry, you still have some time on your hands to get everything ready. Closing the books in the FYE can be quite a hassle, especially for small business owners. However, staying up to date with your business’s critical data and finances helps make the process smooth and easier.
One of the most effective ways to do so is to create a workflow or checklist. It can be quite essential for planning your next year's strategies as it allows you tol closely examine and review your business's important data and financial state. So, before we dive deeper into what to include in your checklist, let us first understand the fiscal year in South Africa and the importance of a good end-of-financial-year closing.
What is a Fiscal Year?
A fiscal year is a one-year period used in government accounting for budgeting and preparing financial statements. This period is also used for financial reporting by businesses and other organizations. In most cases, laws would require companies to prepare and publish financial reports on an annual basis. At the same time, taxation laws require some accounting records to be maintained and taxes calculated before the end of the fiscal year.
In South Africa, the fiscal year runs from the 1st of March 2023 to the 29th of February 2024. The last fiscal year was from the 1st of March 2022 to the 28th of February 2023.
When is the Financial Year End in South Africa?
- The next financial year-end for South Africa falls on the 29th of February 2024. On this date, you, as a business owner, will need to verify, reconcile, and review all transactions and elements of your business accounts. The result of this analysis will help you determine the tax payable to the South African Revenue Service (SARS). Unless otherwise specified by the Commissioner, all businesses must submit their annual employer reconciliation returns to SARS within 60 days of the start of the Employer Tax Filing season.