There are so many factors that influence your GP%, which makes the answer to this question very complex. Possible reasons may include waste, theft, under-ringing, specials, service area participation, etc., to name a few.
The risks of all these various factors need to be identified in your specific business, and effective controls then need to be put in place to minimise those risks for you.
If you are currently battling with your GP%, we can assist you by doing an internal audit of your systems and, from there, devise a plan of action together to address this issue step-by-step.
Your stock figure is used to determine your GP%. The more accurate your stock figure, the more accurate your GP% will be.
The timing and frequency of stock takes will be determined by each company’s access to a proper stock system, as well as the costs involved in doing that stock take.
If you are experiencing problems with your GP%, we will have to do it very regularly until the measures that we put in place for the improvement of the GP% are showing positive results.
The short answer – As regularly as it is cost-effective for each specific store.
Failing to pay over the applicable taxes to SARS’ set deadlines immediately attracts a 10% penalty and interest on the whole outstanding amount until settled. This penalty and interest is not tax-deductible and is simply money wasted.
Example: You need to pay R100 000 to SARS and missed the deadline. You will need to generate additional sales to the value of R87 000 to recover that R10 000 penalty cost (if we assume a GP% of 16%).
Sales: R 87 000
Less: Cost of sales (R 73 080)
Net profit: R 13 920
Less: Income Tax (R 3 898)
R 10 022
Failing to pay over the applicable taxes to SARS’ set deadlines immediately attracts a 10% penalty and interest on the whole outstanding amount until settled. This penalty and interest is not tax-deductible and is simply money wasted.
Example: You need to pay R100 000 to SARS and missed the deadline. You will need to generate additional sales to the value of R87 000 to recover that R10 000 penalty cost (if we assume a GP% of 16%).
Sales: R 87 000
Less: Cost of sales (R 73 080)
Net profit: R 13 920
Less: Income Tax (R 3 898)
R 10 022
Failing to pay over the applicable taxes to SARS’ set deadlines immediately attracts a 10% penalty and interest on the whole outstanding amount until settled. This penalty and interest is not tax-deductible and is simply money wasted.
Example: You need to pay R100 000 to SARS and missed the deadline. You will need to generate additional sales to the value of R87 000 to recover that R10 000 penalty cost (if we assume a GP% of 16%).
Sales: R 87 000
Less: Cost of sales (R 73 080)
Net profit: R 13 920
Less: Income Tax (R 3 898)
R 10 022
Failing to pay over the applicable taxes to SARS’ set deadlines immediately attracts a 10% penalty and interest on the whole outstanding amount until settled. This penalty and interest is not tax-deductible and is simply money wasted.
Example: You need to pay R100 000 to SARS and missed the deadline. You will need to generate additional sales to the value of R87 000 to recover that R10 000 penalty cost (if we assume a GP% of 16%).
Sales: R 87 000
Less: Cost of sales (R 73 080)
Net profit: R 13 920
Less: Income Tax (R 3 898)
R 10 022
Failing to pay over the applicable taxes to SARS’ set deadlines immediately attracts a 10% penalty and interest on the whole outstanding amount until settled. This penalty and interest is not tax-deductible and is simply money wasted.
Example: You need to pay R100 000 to SARS and missed the deadline. You will need to generate additional sales to the value of R87 000 to recover that R10 000 penalty cost (if we assume a GP% of 16%).
Sales: R87 000
Less: Cost of sales (R73 080)
Net profit: R13 920
Less: Income Tax (R3 898)
R10 022
We compare our clients to industry trends and publish those as part of our management accounts monthly to assist you in benchmarking yourself without disclosing any confidential information about other clients.
All employees must be on the payroll as UIF must be deducted and paid over to SARS. The only exception is if a casual worker works for you for less than 24 hours per month and does not have any other income from somewhere else. In this case, you do not have to deduct UIF.