Recording Income

Track all sources of business income accurately for tax compliance and financial clarity.

Overview

Accurately recording all business income is essential for:

SARS tax compliance
Understanding your business performance
Generating accurate financial reports
Calculating provisional tax payments

What Counts as Income?

For SARS purposes, income includes:

Taxable Income

Professional service fees
Product sales
Commission earned
Rental income (business property)
Interest received (taxable portion)
Royalties

Non-Taxable Income

Capital receipts (handled separately)
Exempt income (certain grants)

How to Record Income

Step 1: Navigate to Income

From your dashboard, click Income in the navigation menu.

Step 2: Add New Income

Click Add Income to open the income form.

Step 3: Enter Details

Step 4: Save

Click Save Income to record the entry.

Handling Different Payment Types

Bank Transfer

Record when funds appear in your account.

Cash

Record immediately when received. Keep a receipt book for proof.

Card Payments

Record the gross amount (before processing fees). Record fees as an expense.

Foreign Currency

Convert to ZAR using the exchange rate on the date received.

VAT on Income

If you're VAT registered:

Toggle VAT Inclusive if the amount includes VAT

Enter the total (VAT inclusive) amount

ProcessX calculates the VAT portion automatically

Example:

Total received: R 11,500.00 (VAT inclusive)
VAT portion: R 1,500.00 (15%)
Net income: R 10,000.00

Income Documentation

Keep records of:

Invoices issued: Your invoice to the client
Proof of payment: Bank statements, payment confirmations
Contracts: Agreements for ongoing work

Timing: When to Record

Record income when you receive payment, not when you invoice. This is called "cash basis" accounting.

Field	Required	Description	Example
Description	Yes	What the income is for	"Consulting fee - Project X"
Amount	Yes	Total received	R 25,000.00
Date	Yes	Date received	15 March 2025
Category	Yes	Income type	"Professional Services"
Client	No	Who paid you	"ABC Corporation"
Reference	No	Invoice number	"INV-2025-0042"
Event	Record Income?
Invoice sent	No
Payment promised	No
Deposit received	Yes (for deposit amount)
Full payment received	Yes
Payment cleared in bank	Yes (recommended timing)

Regular vs Once-off Income

Regular Income

Monthly retainers
Recurring client payments
Subscription revenue

Consider tracking these with notes or consistent descriptions.

Once-off Income

Project completions
One-time sales
Ad-hoc services

Best Practices

Record promptly: Add income as soon as you receive it

Be accurate: Enter exact amounts

Use clients: Track income by client for insights

Match invoices: Note invoice numbers for reconciliation

Review monthly: Ensure all income is captured

Last updated: March 2025