Most people are surprised when they have to pay taxes. They figure that they will somehow magically have enough money to cover the bill when it comes due. But that’s not usually how it works.

If you want to be prepared for tax time, you need to start planning and saving well in advance. And if you don’t have the cash on hand, there are places to get funding. You may need to borrow from friends or family, or take out a loan from the bank. But whatever you do, don’t wait until the last minute – that’s a recipe for disaster!

Know when it’s time to pay your taxes. Paying penalties will most likely be a waste of money.

Did you know that you will be penalised for late payments by SARS from the very next day that the deadline close. How much? SARS adds 10% of the amount you were supposed to pay them, plus interest. This is a very expensive and unnecessary form of “bridge finance”.

Willem Haarhoff, CEO and Co-Founder of the DoughGetters Group strongly advises against paying penalties and interest to SARS. “This is a very expensive way to fund your business, because effectively this is almost a triple digit interest rate, that just doesn't make sense. Rather find alternative funding if there is no cash available, the interest rate will be significantly lower in comparison to the very expensive form of funding that SARS will penalise you with. Or if you struggle to get funding, try make an arrangement with SARS to pay your tax debt off over a longer period.”

Tax debt can snowball out of control if not paid on time. The key to not being surprised when you need to pay taxes is to be proactive. There are some things you can do to make sure you have the money you need when it is time to pay your taxes.

Here are 5 tips to help you with your taxes

1. Stay organised and keep track of your finances throughout the year

When it comes to your finances, being organised can help you plan for the future, focus on what's important, and avoid any unpleasant surprises.

One of the most important things to stay on top of is your tax situation. If you're not careful, you could end up owing money come tax time. By keeping track of your income and expenses throughout the year, you can ensure that you're paying the right amount of tax. This will also give you a better idea of your financial situation, so that you can make adjustments as needed.

Another key benefit of staying organised is that it will enable you to access funding when you need it. If you keep good records, you'll be in a strong position to apply for loans or other forms of financing. This could potentially make a huge difference in your life, so it's well worth the effort to stay organised.

So if you're feeling like your finances are out of control, take a deep breath and start getting organised. It will make a world of difference.

2. Make regular tax provisions in your accounts and set cash aside if you know you're going to owe money to SARS

It's never too early to start planning for your tax bill. In fact, making regular (e.g. monthly) tax provisions in your accounts will constantly give you a view of what your tax liability is likely going to be. That in turn will help you start to make plans to set aside enough cash funds so you can pay your taxes when they are due. Not only will it help you avoid any surprises, but it will also give you a chance to focus on other important financial goals. This can help you stay on track with your overall financial plan, and it can also help you avoid any last-minute scrambling to come up with the money. So if you know you're going to owe taxes, make sure to plan ahead, make regular tax provisions in your accounts and set aside cash to fund those tax payments. It's one of the smartest things you can do for your financial future.

3. Consult with a tax professional if you're unsure about anything

4. Don't wait until the last minute to file your taxes - give yourself plenty of time to get everything done correctly

When it comes to taxes, procrastination is not your friend. Get organised and give yourself plenty of time to get everything done correctly. Make sure your accounting records are up-to-date and accurate - this will save you time and headaches down the road. And speaking of headaches, get proper advice from a professional to ensure you're taking advantage of all the deductions and credits you're entitled to. Planning ahead is key - set aside enough cash to cover any taxes owing, or make early plans to get access to cash if need be. By taking these steps, you can avoid the last-minute tax rush and file your return with confidence.

5. Use technology to help you make it easy

Technology is always evolving, and there are always new tools to help us get things done. When it comes to organisation and finance, there are some great options out there that can make your life a lot easier. Dext is a great tool for getting and staying organised, and Xero is a great way to keep your financial records in good shape. You can also use data from Xero to create cool dashboards with important insights that can help you make good decisions when it matters. So don't be afraid to use technology to help you make it easy - it can really pay off in the long run.

Finally, remember that paying your taxes is important. It is one of your responsibilities as a citizen. By taking these steps, you can ensure that you will have the funds you need to pay your taxes with no surprises.

Do you need help from a tax expert?