Sky Tax Knowledge

Many tax practitioners still prepare company tax returns directly on SARS eFiling. This is understandable. eFiling is familiar, it is the system many staff members were trained on, and it feels like the natural place to complete the return. But eFiling is essentially a manual form-completion platform.

Sky Tax is different. Sky Tax is designed to help a tax practice produce ITR14s efficiently, consistently and at scale. The return is not built by manually typing figures into SARS screens. Instead, the ITR14 is driven from the company’s trial balance.

The Trial Balance Should Drive the Return

The financial information in an ITR14 comes from the trial balance. If the trial balance is imported correctly and the accounts are linked to the correct SARS source codes, the return can be produced far more efficiently.

Sky Tax allows you to import the trial balance from a CSV file and map the account codes to SARS source codes. Once this mapping has been done, it can be reused in future years, making the next ITR14 even faster to prepare. In fact if the account codes are standard it can be used over your whole practice. To make it even easier if you have Draftworx the trial balance flows automatically into Sky Tax.

The Sky Tax Process Is Simple

• Import the trial balance.
• Apply or create the SARS source code mapping.
• Review the financial information.
• Make any required adjustments.
• File the return.

Why This Matters for a Tax Practice

A tax practice should not be spending unnecessary time manually recapturing financial information that already exists in the accounting records. Manual capturing creates delays, increases the risk of errors, and makes it harder to standardise the work across the firm.

Sky Tax changes the process from manual completion to structured production. The practitioner remains in control. The figures can still be reviewed. Adjustments can still be made. Professional judgment is still applied. But the unnecessary typing is removed.

eFiling Is for Filing. Sky Tax Is for Production

There is an important distinction. SARS eFiling is the official filing platform. Sky Tax is the production platform that helps the firm prepare, review and manage the return before it is submitted.

This is especially important where a firm prepares many company tax returns. The benefit is not only in one return. The benefit is in creating a repeatable process that staff can follow year after year.

Once the trial balance import and mapping process is understood, the ITR14 becomes faster, easier and more consistent.

The Key Message

Do not treat the ITR14 as a blank SARS form that must be completed manually. Treat it as a return that can be produced from the trial balance. That is the purpose of the Sky Tax ITR14 trial balance import process.

Stop typing the ITR14. Let the trial balance produce it.

A modern tax practice needs more than tax calculations and SARS submissions. It also needs proper control over follow-ups, client instructions, staff responsibilities, review points, and the permanent record of what was done.

Sky Sticky Notes provide this control inside Sky Tax. They operate as a paperless CRM-style reminder and communication system that can be attached to a taxpayer, transaction, assessment, notice, provisional tax record, or other item in Sky.

This means that important information is recorded exactly where the work is being done.

Office-Wide Communication Made Simple

One of the major advantages of Sky Sticky Notes is that they can be used by everyone in the office. Sky is licensed on an unlimited user basis, which means firms can roll the system out to all staff without incurring additional user licence fees.

This is important because tax work is rarely handled by one person only. A staff member may receive client information, another person may deal with SARS, a manager may review the work, and a partner may give a final instruction. Sticky Notes allow all of these users to communicate inside the taxpayer record itself.

Instead of relying on emails, WhatsApp messages, paper notes, or verbal instructions, the communication remains attached to the relevant client or transaction in Sky.

Recording Instructions Properly

Sticky Notes are particularly important for recording instructions.

In a tax practice, instructions are often given while staff are working with client data. These instructions may relate to missing documents, SARS follow-ups, assessment queries, provisional tax decisions, review comments, client-specific issues, or matters requiring partner approval.

For example, if a SARS verification letter is received, a Sticky Note can be created immediately and allocated to the staff member responsible for obtaining the supporting documents or preparing the response. If the matter requires technical input, the same note can be allocated to a manager or partner for review.

Similarly, if an assessment is received and there is something that requires clarification, a Sticky Note can be attached to the taxpayer record. The note can explain the issue, allocate the matter to the correct person, and record whether the assessment must be accepted, queried, objected to, or escalated for partner review.

By recording the instruction as a Sticky Note, the instruction is kept with the taxpayer record. The person responsible can see what must be done, why it must be done, and who requested the action.

This reduces the risk of misunderstandings and lost instructions. It also creates a permanent record of the instruction, the person responsible for dealing with it, and the outcome once the note is cleared.

Better Follow-Up Control

A Sticky Note remains visible until it is cleared. This makes it an effective tool for controlling outstanding work.

A note can be used to remind a user to contact a client, follow up with SARS, obtain missing documents, review an assessment, motivate a basic amount reduction, or deal with any other matter requiring attention.

When users log into Sky, or click the red bell notification feature, they can immediately see outstanding Sticky Notes. This helps ensure that important follow-ups are not forgotten.

Clear Task Ownership

Sticky Notes can be allocated to another user. This creates clear task ownership and makes hand-overs between staff much easier.

For example, a senior staff member can allocate a note to a junior staff member to obtain information from a client. A tax manager can assign a SARS follow-up to a specific person. A partner can leave a review instruction for the person responsible for finalising the taxpayer's return.

This is particularly useful where a SARS notice or assessment needs attention. A verification letter can be allocated to the staff member dealing with the supporting documents, while an assessment that appears incorrect can be allocated to a senior staff member or partner for review and decision-making.

This turns Sticky Notes into a simple workflow system built directly into Sky Tax.

A Permanent Audit Trail

A major benefit of Sticky Notes is that they create a permanent record.

The original note, the instruction, the action taken, and the manner in which the note was cleared remain on the system. This is extremely useful in a tax practice, where it is often necessary to know what was done, when it was done, who dealt with it, and what the final outcome was.

Sticky Notes help improve internal control, staff accountability, review procedures, and practice risk management.

System activity can also create Sticky Notes automatically, particularly when notices and assessments are downloaded. This strengthens the firm's control over SARS correspondence and ensures that important events are not overlooked.

Stronger Provisional Tax and Tax Review Control

Sticky Notes are especially useful in the provisional tax process.

Where a taxpayer's basic amount needs to be reduced, or where a provisional tax payment requires review, a Sticky Note can be added to record the reason, instruction, supporting information, or required follow-up.

In the tax review screen, users can add notes directly against the taxpayer. These notes can record missing information, SARS differences, client instructions, review points, or matters that must be resolved before submission.

Because uncleared Sticky Notes can be filtered and reviewed, management can easily identify outstanding matters before important SARS deadlines.

Management Reporting

Sticky Note files can be exported from Sky and used to produce excellent management reports.

These reports can show outstanding notes, cleared notes, responsible users, follow-up items, unresolved matters, and workflow bottlenecks.

For tax managers and practice owners, this gives a practical overview of what is happening across the tax department. It becomes easier to monitor work, identify delays, follow up on unresolved matters, and ensure that client work is properly controlled.

Why Sticky Notes Matter

Sky Sticky Notes are more than reminders. They are a practical CRM and workflow tool built into Sky Tax.

They help firms:

• Record instructions clearly
• Keep client communication in one place
• Allocate tasks to the correct staff member
• Allocate SARS verification letters for action
• Allocate assessments requiring clarification or review
• Track outstanding follow-ups
• Maintain a permanent audit trail
• Improve review and sign-off procedures
• Strengthen provisional tax control
• Produce management reports
• Reduce reliance on scattered emails, paper notes, and informal messages

Because Sky has an unlimited user licence model, every person in the office can participate in the same workflow process. This makes Sticky Notes an important part of running a modern, paperless, well-controlled tax practice.

For firms using Sky Tax, Sticky Notes provide a simple but powerful way to improve communication, accountability, follow-up control, and management visibility across the entire practice.

For a further explanation of how Sticky Notes work — including how they can be created manually or automatically and used as reminders or CRM notes — see Sticky Notes – how it works.

Good document management is essential in a modern tax, trust, secretarial, FICA and compliance practice. Every firm needs to know where client documents are stored, how they are linked to the work being performed, and how quickly they can be found when required.

Sky’s document folder system gives firms a central, organised and paperless way to store, manage and retrieve documents directly from the client record, transaction or process where they belong.

Instead of saving documents in separate folders, emails, desktops or shared drives, Sky allows documents to be stored inside the system. This means that the document is linked to the relevant client, year, return, company, trust, FICA record or transaction.

The result is a better audit trail, improved workflow and far easier access to the documents needed for review, SARS verification, client queries, FICA compliance, trust administration and internal control.

Centralised document storage

Sky allows documents to be stored against records in the system. Documents can be uploaded manually, saved from emails, attached to transactions, or filed directly into the relevant document folder.

Documents can be accessed centrally from the master client file or from within the specific module where the work is being performed. This gives the practice both a central view of all client documents and a detailed view of the documents linked to a specific transaction or process.

The system allows unlimited document storage, helping firms move away from paper files and scattered electronic folders towards a proper paperless practice environment.

Documents are stored where the work is done

One of the most important principles of document management in Sky is that documents should be stored where the work is being performed.

The main client or entity documents should be stored in the top or header Documents tab where applicable. These documents usually relate to the client or entity as a whole and are not limited to one transaction.

Transaction-specific documents should be stored in the transaction-level Documents tab. These are documents that relate to a specific tax return, assessment, verification, trust transaction, company secretarial action, FICA process or client instruction.

This makes the document much easier to find later because it is linked to the exact transaction or record to which it relates.

Filing documents when processing a transaction

When processing a transaction in Sky, any documents sent out as part of that transaction can be stored automatically in the document folder for that transaction.

When sending the documents, the user should tick the Documents checkbox. Once this is done, Sky saves the documents into the document folder against that specific transaction.

This is important because the document is not only sent to the client, SARS, a trustee, a company officer or another third party. It is also retained in Sky as part of the transaction record.

This creates a proper audit trail and makes it much easier to find the document later if it is needed for review, follow-up, SARS verification, FICA, trust administration, secretarial work or internal control.

The practice does not have to search through sent emails, desktop folders or shared drives. The document is stored where the work was done, against the exact transaction to which it relates.

Organised by groups and subgroups

Documents in Sky can be organised into groups and subgroups. These may include categories such as:

• Tax
• Secretarial
• Trusts
• Debtors
• FICA
• Supporting documents
• Signed documents
• Client correspondence

This structure helps staff file documents consistently and find the correct document quickly. It also reduces the risk of documents being stored in the wrong place or lost outside the system.

A proper document structure is especially important in a busy practice where different staff members may be working on the same client at different times.

Tax return supporting documents

For tax work, Sky allows supporting documents to be stored against the relevant client and tax year.

These documents may include IRP5 certificates, medical certificates, retirement fund certificates, travel schedules, donation certificates, investment certificates and other documents used to prepare the return.

This is particularly useful where SARS later requests supporting documents. The firm can quickly retrieve the documents that were used when preparing the return, instead of searching through emails, client folders or old correspondence.

It also assists with internal review because the supporting documents are kept together with the return or transaction to which they relate.

Trust documents

In Sky Trusts, the main trust documents should be stored in the header Documents tab. These would include documents such as the trust deed, letters of authority, ID documents of trustees and beneficiaries, trustee mandates and other permanent trust records.

Documents linked to specific trust transactions should be stored at transaction level.

This keeps permanent trust records separate from transaction-specific documents and makes trust administration easier to manage. It also assists the practice in showing what document supports a specific trust transaction or decision.

FICA documents

Sky FICA allows the firm to manage required FICA documents in a structured way. The system includes document lists based on the type of entity, and the required documents can be uploaded against the relevant client.

The FICA documents screen allows staff to view the necessary documents and add notes or comments where required.

This helps the firm maintain a proper FICA record and ensures that the supporting documents are stored together with the client’s FICA compliance process.

Email attachments and signed documents

When sending emails from Sky, documents can be attached to the email and filed into the relevant document folder.

Sky also allows additional documents to be attached to emails. PDFs can be merged into one file or left as separate documents, depending on how the firm wants to send and store them.

Where documents are sent for digital signature, the signed documents can be returned into Sky. This helps the practice maintain a complete electronic record of the signed document and the related transaction.

The key point is that documents sent from Sky should be saved back into Sky. By ticking the Documents checkbox when sending documents, the firm ensures that the outgoing document is stored against the relevant transaction and remains available for future reference.

Notes and sticky notes

Documents in Sky can also be supported by notes or sticky notes. This allows staff to record comments, instructions or follow-up actions against a document.

For example, where a document needs to be reviewed by a partner, clarified by a client, allocated to another staff member, or used in response to a SARS query, a note can be added so that the instruction is clear and visible.

This turns the document folder into more than a storage area. It becomes part of the firm’s workflow, review process and audit trail.

Document Storage Enquiry

The Document Storage Enquiry screen gives the firm a central view of documents stored across the system.

It includes filtering tools that allow documents to be searched by client, document type, date and digital signature status. This is useful for tracking documents, checking whether documents have been filed correctly, and finding documents quickly when they are needed.

For a firm managing large numbers of clients and transactions, this central enquiry screen is an important control tool.

Why document folders matter

Sky’s document folders help firms move away from scattered document storage and towards a proper paperless practice.

Documents are stored where they belong, linked to the correct client, year, record or transaction. This improves workflow, reduces duplication, supports compliance and creates a better audit trail.

In a modern tax and compliance environment, the ability to find the right document quickly is critical. Sky’s document folder system gives firms the structure and control they need to manage client documents properly.

The practical rule is simple: when a document relates to a transaction, store it against that transaction. When a document is sent out from Sky, tick the Documents checkbox so that the document is automatically retained in the correct document folder.

That is how a firm builds a proper electronic record — one transaction, one document folder and one audit trail at a time.

In a modern tax and accounting practice, the transaction itself is only part of the story. The real strength of a practice lies in its ability to prove, explain and defend that transaction when a client, SARS, a manager, a partner or an auditor asks the question: “Where is the evidence?”

This is where Sky plays an important role.

Sky is not simply a processing system. It is designed to create a complete working environment around each taxpayer, company, trust or client record. One of the most important parts of that environment is the ability to store documents and supporting evidence directly against the transaction to which they relate.

The documents folder and sticky notes are central to this process. Together, they help ensure that the evidence, explanations, instructions and follow-up actions relating to a transaction are not lost or separated from the work being performed.

The problem with documents stored separately

In many firms, the transaction is processed in one place, while the evidence is stored somewhere else. The supporting documents may be in an email inbox, on a staff member’s computer, in a shared drive, in a paper file, or saved under a general client folder with no clear link to the actual transaction.

This creates unnecessary risk.

When SARS raises a verification, asks for supporting documents, questions an assessment, or requests clarification, the firm must then search for the information. Staff members may need to go through emails, WhatsApps, PDFs, scanned documents and file notes just to reconstruct what happened.

This wastes time and creates uncertainty. It also makes it harder for a manager or partner to review the work properly because the transaction and the evidence are not sitting together.

Evidence belongs with the transaction

The best place to store evidence is against the transaction itself.

If a return is filed, the supporting documents should be stored with that return. If a SARS notice is received, it should be stored against the relevant matter. If a response is sent to SARS, the submission and supporting documents should be attached to the transaction. If an assessment, verification letter, statement of account, receipt or proof of payment is received, it should be available where the work is being done.

This is the practical advantage of Sky’s document functionality.

When processing a transaction in Sky, and when sending documents out, the documents checkbox should be selected so that the documents are stored automatically in the document folder against the relevant transaction. This ensures that the evidence does not disappear into a general storage area where it becomes difficult to find later.

The documents folder as the evidence file

The documents folder plays an important role in creating a proper evidence file for the transaction.

It is not merely a storage area. It is the place where the firm can retain the documents that support the transaction, including SARS correspondence, client documents, calculations, proof of submission, assessments, statements of account, receipts and other relevant material.

When documents are stored against the transaction, the user does not need to search across different systems to understand what happened. The evidence is immediately available in the same area where the transaction was processed.

This makes the practice more organised and reduces the risk of missing documents when a matter is reviewed or queried.

Sticky notes as part of the evidence trail

Sticky notes also play an important role in providing the necessary evidence.

Not all evidence is a formal document. Sometimes the key evidence is an instruction, an explanation, a follow-up note, a review comment or a record of why a particular step was taken.

Sky’s sticky notes allow these comments and instructions to be recorded against the relevant transaction or record. This is especially useful where a SARS letter requires clarification, where a verification letter has been received, where an assessment needs to be reviewed, or where a matter must be allocated to another staff member or partner.

A sticky note can record what needs to be done, who must deal with it, what the issue is, and what action was taken. This creates a practical audit trail and helps the firm show not only what documents were available, but also how the matter was managed.

In this way, sticky notes support the documents folder. The documents folder stores the evidence, while the sticky note records the instruction, explanation and follow-up action.

Better control and better review

Having the evidence available against each transaction improves the quality of the work and the control within the practice.

A reviewer can see not only that the transaction was processed, but also why it was processed in that way. A partner can check the SARS correspondence, supporting documents, client instructions and internal notes without having to ask staff to find the file.

A staff member taking over a matter can immediately see the history of the transaction, the documents attached, the sticky notes raised, the instructions given and the outcome of the matter.

This is especially important in tax work, where the firm may need to justify a position months or even years after the original transaction was processed.

Sky helps create a proper audit trail. The transaction, the SARS document, the client document, the response, the sticky note, the instruction and the outcome can all be kept together. This reduces the risk of missing information and makes the practice more efficient.

Faster responses to SARS

SARS verification and audit requests often come with short deadlines. A firm that has to start searching for documents after the request is received is already under pressure.

Where evidence has been stored correctly in Sky, the response is much easier to prepare. The user can open the transaction, review the documents folder, read the sticky notes, check what was submitted and respond with confidence.

This is a major efficiency gain.

Instead of rebuilding the file, the firm is working from an organised digital record. This saves time, reduces stress and improves the quality of the response to SARS.

Protecting the practice

Document management is not only about convenience. It is also about protecting the practice.

If a client later questions why something was done, the firm must be able to show the instruction, the calculation, the document received, the submission made and the SARS response. If SARS raises a dispute, the firm must be able to produce the relevant material quickly and accurately.

The absence of evidence can create a serious problem. A transaction may have been correctly processed, but if the supporting documents, instructions or review notes cannot be found, the firm is placed in a weak position.

Sky reduces this risk by encouraging a disciplined process: process the transaction, attach the documents, record the sticky note where necessary, store the correspondence and keep the record complete.

A better way of working

The modern accounting and tax practice must move away from scattered documents, disconnected records and informal instructions that are not properly recorded.

The future is an integrated working file where the transaction, the evidence, the documents, the instructions and the follow-up actions are kept together.

Sky provides this structure.

By storing documents against each transaction and using sticky notes to record instructions and follow-ups, Sky helps firms create a cleaner, safer and more efficient working environment. It allows staff to work better, managers to review better, partners to control risk better, and the firm to respond to SARS more effectively.

In tax practice, evidence is not an afterthought. It is part of the transaction.

Sky makes sure that the evidence is where it belongs — directly against the transaction, supported by the documents folder and strengthened by sticky notes.

In Sky, finalising a transaction is not just an administrative step. It is an important control point in the workflow. Whether the transaction is an IRP6 provisional tax return, an ITR12 income tax return, or another Sky transaction, the purpose of finalising is to protect the integrity of the work that has been completed.

A finalised transaction tells the practice that the record has been checked, completed and is ready to be treated as the final version. Once finalised, the transaction is locked and a lock icon appears. This means the transaction cannot be changed accidentally unless it is deliberately unlocked again.

This is important because tax work is not only about completing a calculation. It is about knowing which version of the work is correct, which records are ready for submission, and which records must no longer be altered.

Finalised Means Complete and Controlled

When a transaction is marked as finalised, Sky is effectively recording that the work has reached a completed stage. The record has moved from being a working document to being a controlled record.

This is especially important in a busy tax practice where many people may be working on the same tax season, the same taxpayer base, or the same provisional tax run. Without a clear finalisation process, it becomes too easy for data to be changed after it has already been checked.

Finalising gives the practice a clear answer to a simple but critical question:

Is this transaction still being worked on, or is it complete?

Once the answer is complete, the transaction should be finalised.

Preventing Accidental Changes

One of the biggest risks in tax production is accidental change. A user may update a figure, retrieve information again, change demographic data, or overwrite information without realising that the return or provisional tax calculation had already been checked.

Finalising prevents this by locking the transaction.

This does not mean that errors can never be corrected. If a change is genuinely required, the transaction can be unlocked by an authorised user. But the act of unlocking becomes a deliberate step. This creates discipline and accountability in the process.

The benefit is simple: completed work is protected.

IRP6 and Provisional Tax Finalisation

In the IRP6 and provisional tax workflow, finalising is particularly important because the practice may be dealing with large volumes of taxpayers at the same time.

Sky uses statuses such as Ready for Submission and Finalised to help the user manage the workflow. These statuses allow the practice to filter the exact taxpayers or transactions that are ready to be submitted to SARS.

This is a major production advantage. Instead of relying on memory, spreadsheets, or informal notes, the status of the transaction tells the practice where the work stands.

Before finalising an IRP6 transaction, the user should ensure that the calculation has been reviewed, the relevant SARS assessment or statement information has been considered, and the payment position has been checked. Once that has been done, finalising records that the transaction is complete and ready to be relied on.

ITR12 Finalisation

The same principle applies to ITR12 returns.

Before filing an ITR12, the return should be previewed or pre-assessed. This allows the user to check for errors, review the expected SARS calculation, and compare the Sky result with what SARS is likely to assess.

This step is important because once the return has been worked on, the user should be careful about retrieving the return or demographics again. Re-retrieving information can overwrite work already done. Finalising the ITR12 helps protect the version of the return that has been prepared, checked and approved for filing.

In other words, finalisation protects the return from unnecessary or accidental change at the point where the practice is satisfied that the return is ready.

Finalisation Supports Better Practice Management

Finalising transactions is also a management tool.

It allows partners, managers and tax administrators to see what has been completed, what is still in progress, and what is ready for submission. This is especially important during peak tax season, when the volume of work is high and deadlines are tight.

A proper finalisation process helps a practice:

• identify completed work;
• filter records ready for submission;
• avoid submitting unfinished transactions;
• prevent accidental edits;
• maintain a reliable audit trail;
• improve review control; and
• reduce the risk of SARS submissions being based on incorrect or overwritten data.

Finalising Is Part of Data Integrity

Data integrity means that the data in the system can be trusted. In tax work, this is essential.

The practice must know that the data submitted to SARS is the same data that was reviewed and approved. If transactions remain open and editable after review, there is always a risk that the data may change before submission.

Finalising reduces that risk. It creates a controlled point in the process where the transaction is locked, complete and ready to be used.

Conclusion

Finalising Sky transactions is not merely a technical function. It is a control mechanism.

It tells the practice that the transaction has been completed. It locks the record against accidental edits. It helps users filter the correct records for SARS submission. It protects the work already done. Most importantly, it improves the integrity of the tax production process.

In a modern tax practice, where large volumes of IRP6 and ITR12 transactions are processed, finalisation should be treated as an essential step. It is the point where the practice moves from preparation to control.

Finalised means complete.
Finalised means protected.
Finalised means ready.