Three books for Small Taxpayers

Three books for Small Taxpayers

Small taxpayers will use simplified Accounting Format (SAF).

The SAF  is a single entry accounting format that contains accounts to record daily business transactions, which is attached with invoices or documents clearly specifying income and expenses.

SAF is single entry accounting rather than a double entry system.

Simplified Accounting Format (SAF) records income on a cash basis rather than an accrual basis.

Invoices are required upon supply and purchase, including invoices for returned goods and services.

Three books below are kept and submitted to tax authority for m0nthly taxes.

Purchase Day Book:

The purchase day book is responsible for recording the following expenses:

• – Fixed assets
• – Goods for sales or for supplying services
• – Raw material
• – Wages and salaries
• – Utilities
• – Rental
• – Other expenses

Sales Day Book:

• – Record all daily transactions involved in supplying goods and services following each invoice if the selling price of goods or service is high.
• – Record as total daily sales when retail goods are lower price or are on a single invoice.

Inventory Book:

• -Record beginning inventory
• -Record Purchases during period
• -Record ending inventory
• -Record goods sold

Books for medium and large companies are differences from small taxpayers because medium and large taxpayers may need the following books or records to submit to tax officer:

• – Sale Record ( it is similar to sale day book for small taxpayer);
• -Salary ( resident and non-resident employee) Record;
• -Fringe Benefit Record;
• -Purchase Record (it is similar to purchase day book for small taxpayer);
• -Withholding Table Record