When it comes to running a business, every shilling counts—especially during tax season. One of the most powerful tools to reduce your tax burden legally and efficiently is proper bookkeeping. Here’s how:
1. Tracks All Deductible Expenses
Good bookkeeping ensures every business expense—no matter how small—is recorded. These include:
- Rent
- Transport
- Office supplies
- Internet & phone bills Without records, you risk missing out on deductions that could lower your taxable income.
2. Avoids Penalties
Late filings or underpaid taxes often happen due to missing or incorrect records. Timely bookkeeping helps you:
- File accurate returns
- Avoid penalties
- Keep clean records in case of an audit
3. Helps in VAT Input Claims
If you’re VAT-registered, proper bookkeeping helps claim VAT inputs on purchases. No receipts = No claim.
4. Supports Investment & Asset Claims
Accurate asset records (purchase date, cost, depreciation) allow you to claim capital allowances properly—reducing your tax payable.
5. Makes Tax Planning Easy
Up-to-date books give your accountant a clear picture of your finances. They can then help you:
- Forecast taxes
- Set aside enough funds
- Make smart business decisions before the year ends
In Summary:
Bookkeeping is more than record-keeping—it's a tax-saving strategy. At Sami Accountants, we help SMEs maintain proper books so they can file accurate returns, reduce taxes legally, and focus on growth.
📞 Call/WhatsApp: 0722908232
📧 Email: samicpas@gmail.com
📍 Shankardass House, Moi Avenue, Nairobi
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