Remember Kra is transitioning taxpayers from the old ETR to TAX INVOICE MANAGEMENT SYSTEM (TIMS)?

This is pursuant to the enactment of the VAT regulations (L.N. 189) and section 17 and 43 of the VAT Act 2013.

SO,WHAT ARE TIMS COMPLIANT ETR’s?

• They are ETR’s that are capable of validating invoice data at the point of issuing the invoice.
• They are capable of generating a unique code on the invoice which will help to verify its validity
• Transmission of the Validates electronic invoice to KRA on a real time basis

ADVANTAGES OF THE TIMS COMPLIANT ETR’s

• Simplified return filing through the pre-filled VAT return
• It is a solution to the VAT Auto Assessments (VAA) process
• Automated activation of the ETR
• Faster processing of VAT refunds

Therefore to identify the suitable type of ETR for your business, we have discussed the different types of ETR’s below:

1. TYPE A MACHINES.

• Suitable for small businesses whose record keeping is manual.
• Also for those who do sales on the move(using delivery modes)

Examples of such machines: DATECS WP-25,MERCURY 130W,INCOTEX 181/133

N.B : THE MACHINE IS PORTABLE.

2. TYPE B MACHINES.

• Suitable for retail outlets and shops using point of sale (POS) terminals.

Examples of such machines:INCOTEX 300SM DATECS FP 700, TREMOL FP 24.

3. TYPE C MACHINES.

• Suitable for businesses that have automated their operations and use software billing systems or Enterprise resource planning (ERPs)

Examples of such machines: INCOTEX 600

4. TYPE D MACHINES

• Suitable for all types of business entities.

Examples of such machines: IPALM.

Remember to replace your ETR to the TIMS COMPLIANT ETR by 31^st JULY 2022.

Contact us for supply of the TIMS COMPLIANT ETR MACHINE.

CALL /TEXT /WHATSAPP : 0768-050-866

EMAIL US : info@jamiicapital.co.ke.

I have seen most people confuse the KRA Income tax returns and the Annual Returns filed with the registrar of companies.

In this article, we gonna discuss the annual returns filed with the registrar of companies to help you distinguish between the two.

Most people are not aware of the annual returns which are very important since there are a number of activities you cannot fulfil without filing annual returns eg. company dissolution

So What are annual returns?

Its a statutory document that every registered company  in Kenya has to file with the registrar of companies to show the “current” status of the company. Annual returns highlight the structure of the company, the shareholding, the division of shares, the Nominal capital, the names and addresses of the directors and shareholders in a company. The current registered office of the company and details of the company secretary.

After incorporation, the first annual return filing should happens at exactly One year and 6 months, after which the filing should be filed on an annual basis.

Remember you risk your company being struck of the register of companies when you continuously fail to file the annual returns.

Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff.

When should you consider outsourcing accounting and bookkeeping services?

• Cases of a small business which doesn’t require a full-time bookkeeper but needs a person with more skills than the office manager, or receptionist

• Cases where a company of any size cannot find a full-time employee with suitable abilities at affordable costs
• Cases where temporary services are needed, e.g., extra help with end of the year reports or if a full-time employee is going on holiday, maternity leave, etc.
• Cases of automation

WHAT FACTORS DO YOU CONSIDER BEFORE YOU DECIDE TO OUTSOURCE SUCH SERVICES?

• Cost factors
• Availability of such service providers ( outsourcing companies)
• The specific services that you need
• Data security

What are the advantages of outsourcing accounting services?

• More Cost Effective- It saves cost of recruiting and hiring accounting staff
• Access to finance and accounting expertise
• Avoid turnover and time-off issues
• It allows you to plan your budget efficiently
• It helps you to ensure the compliance of your business
• It increases efficiency
• It allows you to plan your budget efficiently

What types of business and financial tasks can you outsource?

• Bookkeeping and reconciliation

• Payroll processing services

• Accounts payable management

• Accounst receivables management

• Tax returns filing and remittance

• Statutory deductions filing and remittance

In conclusion,when outsourcing accounting services it is important to make sure that you do your research.

Working with experts in the field assures you that your finances and being taken care of appropriately.

When used properly, outsourcing is an effective strategy to reduce cost.