Get tax-ready before financial year-end catches you off guard!

With the financial year ending in February, now is the window for entrepreneurs to get organised and not just to stay compliant, but to put their business in a stronger position going into the new year.

Here’s how to set yourself up properly, without overcomplicating it:

Get your numbers up to date - Make sure your income, expenses, and bank statements are fully captured and reconciled. Waiting often leads to rushed decisions or missed deductions.

Review expenses you can legitimately claim - Items like software subscriptions, equipment, marketing costs, and business travel are often overlooked. If it’s business-related, it matters.

Separate business and personal spending - If this has been blurred during the year, clean it up now. Clear records make tax submissions smoother and improve credibility.

Check your provisional tax position - If you’re registered, ensure your estimates are realistic. Under- or over-estimating can hurt cash flow later.

Use this as a financial health check - Clean, current financials don’t just help with tax - they also put you in a far better position if you need growth capital in the new financial year.

Why go through all the hassle to be tax ready?

Late submissions or underpayments don't always feel urgent - until penalties and interest accumulate. Manageable amounts grow over time, turning into financial constraints.

Being non-compliant can delay routine business activities, because required documents aren't available or up to date.

When tax records and financials aren't in order, owners don't have a clear picture of profitability or cash position, leading to decisions being made on assumptions rather than facts.

Practical examples of how this can affect your business:

As a growing business service, if your management accounts don't reconcile with SARS submissions and provisional tax is outstanding - then lenders pause the application process until everything is aligned, meaning missed opportunities for funding.

If your retail business hasn't set aside enough for tax because figures weren't reviewed in advance - then larger than expected tax liability lands, forcing the owner to divert operational cash and being under financial pressure.

If an artisan trade business claims expenses inconsistently and mixes personal and business transactions - when financials are reviewed, profit appears lower and risk appears higher, making it difficult for lenders to provide working capital.

Bottom line:

Tax readiness isn’t a once-a-year admin task. A little preparation now can save money, reduce stress, and create opportunities later.