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Softa

Think Ahead.

An accounting system and education platform helping businesses understand records, taxes, and government regulations.

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💡 Did You Know?

Important tax insights for business owners

Keep receipts for every expense

Receipts help you prove expenses, calculate real profit, and reduce mistakes during tax reporting.

Softa Tips Updated regularly

Separate business and personal money

Using one account causes confusion. Separate money = clean records, easy reports, and loan-ready statements.

Softa Tips Updated regularly

📅 Monthly Returns

Bilingual guidance (Swahili & English) with key points for quick learning.

Monthly Summary Review
Every month
ENGLISH
Review sales, expenses, and profit. Prepare receipts and reconcile cash/bank.
SWAHILI
Kagua mauzo, matumizi na faida. Panga risiti na linganisha fedha/banki.
VAT / Sales Reporting (if applicable)
By your tax schedule
ENGLISH
Track taxable sales, purchases, and keep supporting invoices.
SWAHILI
Fuatilia mauzo yanayotozwa, manunuzi na hifadhi ankara/risiti.
Payroll (if you employ staff)
Every month
ENGLISH
Record salaries, deductions, and keep staff payment evidence.
SWAHILI
Andika mishahara, makato na uthibitisho wa malipo ya wafanyakazi.

🏢 How to Start a Business

A simple step-by-step guide using the most common process: Registration Authority → Tax Authority → Business Licence → Permits → Records.

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✅ Golden rule: If you keep records from day one, taxes become easy and your business becomes bank/loan ready.
1

Choose your structure

This affects ownership, risk, taxes and reporting.

  • Sole Trader / Individual Business
  • Partnership
  • Company (Limited / Public)
  • NGO / Nonprofit
2

Register the business name

Apply through the Business Registration Authority (often online).

  • Pick 2–3 name options
  • Owner/director details
  • Address & contacts
3

Incorporate (if a company)

Companies usually require formal documents and ownership setup.

  • Memorandum & Articles (or equivalent)
  • Shareholders & directors
  • Share capital/ownership plan
4

Register with the Tax Authority

Get your tax ID (often called TIN) and confirm applicable taxes.

  • TIN (tax identification)
  • VAT registration (if required)
  • Payroll registration (if hiring)
5

Business Licence + Permits

Most businesses require a licence and some need sector permits.

  • Proof of premises
  • Proof of tax registration
  • Sector permits (if regulated)
6

Open a bank account + start records

Separate business money and record every transaction.

  • Business bank account
  • Receipts and invoices
  • Use Softa daily (sales, purchases, expenses)
Tip: Act like a big business early — clean records make you trusted by customers, banks and investors.

📄 Common documents required

  • Owner/Director identification
  • Business address & contacts
  • Proof of premises (rent agreement/title)
  • Company documents (if company)
  • Business plan/description (sometimes)
Keep a single folder (physical + digital) for all documents.

✅ Setup checklist

  • Business email + phone line
  • Business bank account
  • Invoice/receipt format
  • Accounting method (cash or accrual)
  • Payroll setup (if employing staff)
  • Industry permits (if required)
Softa helps you keep invoices, receipts and records organized.

📘 Accounting standards

Standards are rules for preparing financial statements. The applicable standard depends on your size and regulation.

  • IFRS — often for larger/audited companies.
  • IFRS for SMEs — simplified reporting for small/medium businesses.
  • Local GAAP — national standards in some countries.
  • Nonprofit reporting — donor/regulator reporting requirements may apply.
Best habit: record daily transactions correctly.

🧠 What to track (for compliance)

  • Sales: cash & credit
  • Purchases: supplier invoices
  • Expenses: with receipts
  • Inventory: stock in/out
  • Assets & liabilities
  • Reports: profit, cash flow, balance sheet
Clean records = easy reporting and easy tax filing.

🧾 Taxes (Tax Authority)

Most Tax Authorities focus on these categories:

  • Income/Corporate tax — based on profit.
  • VAT — based on sales (thresholds/sector rules apply).
  • PAYE / payroll taxes — when you employ staff.
  • Withholding tax — rent, services, dividends, interest, etc.
  • Local levies — depends on business and location.
Record everything + file on time = fewer penalties.

📌 Simple tax habits

  • Separate business money from personal money
  • Keep receipts for every expense
  • Issue receipts/invoices for every sale
  • Track stock movements
  • Review monthly (sales, expenses, profit)
  • Prepare returns early
Softa makes these habits easy to follow.
Limited Company (Private)

Owned by shareholders and managed by directors. Liability is usually limited to what owners invested.

  • Standards: IFRS for SMEs (common) or IFRS (bigger/audited).
  • Tax Authority focus: corporate tax, VAT (if registered), payroll, withholding.
Public Company

Can raise capital from the public and usually has stricter governance and reporting.

  • Standards: IFRS + audits (commonly required).
  • Tax Authority focus: corporate tax, VAT, payroll, withholding + dividend rules.
Unlimited Company

Owners may be personally responsible for debts. Higher risk and less common.

  • Standards: IFRS/IFRS for SMEs/local GAAP depending on size.
  • Tax Authority focus: similar tax families, but risk exposure is higher.
NGO / Nonprofit

Mission-first. Surplus is reinvested into the mission rather than paid as dividends.

  • Standards: nonprofit/donor reporting requirements may apply.
  • Tax Authority focus: exemptions may exist, but payroll/withholding/VAT may still apply.