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Why Your Cash Flow Problems May Be Down to Your Behaviour

Fri, 13 Mar 2026 08:00:06 GMT

“Never take your eyes off the cash flow because it’s the lifeblood of business.” (Richard Branson)

Ask any business analyst about recurring cash flow challenges and you’ll often hear them say, “It’s not that the business is short of money, it’s that money arrives too late or not at all.” Behind every late payment sits a human choice: a decision to delay invoicing, skip a follow-up call or assume a client will “get around to it.” These decisions aren’t random; they reflect habits and beliefs about confrontation, courtesy, and priorities.

Over time, the cost of these habits shows up in your bank account, your stress levels, and your ability to invest in growth. Changing your behaviours can change your cash flow trajectory. Here’s a breakdown of the common behavioural issues that silently undermine cash flow:

Delaying invoicing

Waiting until the end of the week, month, or project to send invoices feels courteous, especially when you want to avoid awkwardness. But every day you delay is a day your cash is “on credit.” By simply issuing invoices immediately upon delivery of goods or services, you can cut your payment cycle dramatically.
Avoiding follow-ups

Being “nice” and hoping clients remember to pay without prompting is one of the costliest behaviours in business. Assuming people will act without a reminder is sheer optimism. Don’t be afraid to send a polite reminder.
Not wanting to appear pushy

Many business owners avoid stating payment terms clearly because they don’t want to seem pushy. But it’s very possible to be both polite and firm. Clear, upfront terms eliminate confusion and reduce disputes later.
Letting “good relationships” override Ts & Cs

Being flexible with payment deadlines to keep clients happy can feel like relationship building – until you realise it’s subsidising someone else’s cash flow and squeezing yours. It also sets false precedents, erodes your negotiating power and, critically, impacts your ability to pay your own bills.
Underestimating your own time

When you don’t value your time with firm payment terms, clients often reflect that same lack of value back to you. Whether they’re acting intentionally or not, studies have shown that how you behave signals what you expect in return.
Not using professional support

Your accountant can be an invaluable asset when it comes to cash flow. An accountant can help you design invoicing systems, analyse payment patterns, and implement tools that automate reminders. This takes the emotion out of follow-ups and frees you up to focus on your craft. Talk to your accountant about structured invoicing systems and cash-flow forecasting reminders.
Ignoring the feedback loop

If clients consistently pay late, it’s a signal, not a personal slight. Asking why payment is late reveals patterns in your process, communication or terms that you can improve. Avoiding the conversation keeps you stuck in the same cycle.
Fearing financial conversations

A lack of confidence when talking about money breeds avoidance. Money conversations are uncomfortable, yes, but they build clarity and trust when done with professionalism.

New behaviour = Better cash flow

Now that you’ve identified the challenges, here’s what you can do about them.

Set clear, consistent terms

Agree payment terms upfront and stick to them. A signed agreement reduces ambiguity and gives you a basis for professional follow-ups.
Automate where possible

Use tools for billing and reminders. Automation removes the emotional resistance to chasing payments and keeps your business running smoothly.
Train your team

If you have staff, ensure that everyone knows how to request, follow up on and record payments. It’s vital that you’re all singing from the same hymn sheet.
Track metrics – and adjust

Ask your accountant to help you set up key performance indicators (KPIs) for cash flow, such as average days to pay, overdue ratios, and client payment patterns. Once you know what the problems are, you can take steps to fix them. If you’re only going to track one metric, make it the “cash conversion cycle”, which measures, in days, how long it takes you to convert resources into cash flow. The lower the number, the better.

Cash flow is as much a reflection of your behaviour as it is of your success. Every invoice you send promptly, every follow-up you make professionally, and every firm but fair payment term you enforce tells your business and your clients how you value time, expertise and partnership.

Start treating your cash flow as a behavioural challenge, not just a financial one, and you’ll build a stronger foundation for sustainable growth.

Streamlining In-House Accounting Processes with AI

Wed, 11 Mar 2026 08:00:32 GMT

“Artificial intelligence and generative AI may be the most important technology of any lifetime.” (Marc Benioff, CEO, Salesforce)

Traditional accounting involves a great deal of manual processing, endless menial tasks, and plenty of opportunities for mistakes and typos – all of which can mean long waiting periods for financial reports that are crucial for decision-making.

AI is changing this through advanced technologies like machine learning, natural language processing, generative AI, and intelligent automation. It can streamline accounting and finance processes, reduce human error, and empower you to make real-time data-driven decisions with greater certainty.

Many proactive businesses are already experiencing the benefits of integrating AI into their bookkeeping and accounting workflows.

Benefits of AI in accounting processes

Faster processing: AI dramatically accelerates routine accounting tasks, like invoice processing and bank reconciliations. These previously tedious manual processes are now completed in minutes.
Streamlined expense management: From a photo taken with a phone, AI can extract relevant information from receipts and other documents, categorise expenses according to company policy, and route claims for approval automatically. Reimbursements happen faster, and less time is spent chasing paperwork.
Greater accuracy: While manual data entry inevitably leads to mistakes, AI systems achieve impressive accuracy rates. AI also consistently applies the correct rules to every transaction and maintains complete audit trails automatically. This means less time spent fixing errors, fewer penalties, and greater confidence in your financial reports.
Cost savings: Reduced labour costs and fewer errors result in ongoing savings that multiply as your business grows.
Scalability: Automated platforms can accommodate significant growth with minimal additional resources, supporting expansion without requiring corresponding overhead increases.
Proactive problem-solving: AI can flag unusual patterns immediately and spot issues before they become problems, for example, by predicting cash flow constraints before they occur.
Real-time financial visibility: With AI, you can say goodbye to the traditional monthly close process and hello to continuous accounting, where accounts remain perpetually up-to-date.
Enhanced fraud protection: Machine learning algorithms can continuously monitor transactions for suspicious patterns, helping protect businesses from both external fraud and internal irregularities. AI can scan 100% of a company's transactions to identify inconsistencies or potential fraud, replacing traditional manual sampling methods.

What AI means for your business

By embracing AI-driven tools, businesses can streamline financial operations, improve accuracy and decision-making, reduce costs and risks and gain a competitive edge in today’s digital economy.

If your current in-house processes still rely heavily on manual grunt work, it may be time to explore AI-enabled alternatives.

A good starting point would be to identify repetitive tasks like manual data entry or document chasing that delay your accounting processes. Start with one specific workflow: let’s say, Accounts Payable automation, training staff to shift from doing the work to reviewing the AI-generated outputs and managing any exceptions. Once you’ve got that waxed, you can start overhauling other processes.

Not a silver bullet

Experts widely agree that AI is extremely unlikely to replace accounting professionals, whether working in companies or in advisory firms. However, AI does offer great potential to transform accounting roles by automating routine tasks for enhanced efficiency and accuracy, and by enhancing analysis and decision-making capabilities.

Leveraging AI in your internal accounting processes is a no-brainer. We invite you to talk to us about your accounting workflows and how best to use AI to simplify them.

Budget 2026: Your Tax Tables and Tax Calculator

Mon, 09 Mar 2026 09:48:49 GMT

Budget 2026 has brought long-overdue relief to taxpayers by not imposing VAT or income tax hikes and by adjusting the tables for tax rates, rebates and credits for inflation. Of course, some tax hikes were always going to happen: inflation-linked increases on sin taxes took effect on 25 February already and the fuel levies also increased.

This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year. Then follow the link to Fin 24’s Budget Calculator (just follow the four-step process) to do your own calculation.

Individuals taxpayers

Source: National Treasury

How much will you be paying in income, petrol and sin taxes?

Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will pay in terms of fuel and sin taxes.

Bear in mind, however, that the best way to fully understand the impact of the proposals in Budget 2026 on your personal and business affairs is to ask us.

Budget 2026: What it Means for You and Your Business

Mon, 09 Mar 2026 07:59:31 GMT

“The 2026 Budget marks an important turning point for South Africa.” (Dr Duncan Pieterse, Director-General, National Treasury)

Some of the best news in Budget 2026 is the real GDP growth of an estimated 1.4% for 2025, rising to 2% in 2028, and a debt ratio that will stabilise during this financial year and decline thereafter.

Inflation also declined to 3.2% in 2025 (from 4.4% in 2024), improving affordability for households and keeping interest rates down. At the same time, growth-enhancing reforms have progressed and confidence in South Africa’s fiscal outlook has improved, enabling a sovereign ratings upgrade and lower borrowing costs.

No income tax or VAT increases

Against this backdrop, the government has withdrawn the R20 billion tax increases it had planned for this budget and instead proposes inflationary relief for taxpayers.

This means no increase in VAT and no increase in income tax for individual or corporate taxpayers.

Inflationary relief, finally

After two years with no inflationary relief, personal income tax brackets and medical tax credits are fully adjusted for inflation.

The tax threshold for individuals below age 65 is now R99 000, and medical tax credits will increase from R364 to R376 for the first two members, and from R246 to R254 for additional members.

Bottom line: taxpayers will keep more of their income in real terms than in the previous two years.

In addition, limits, rebates and duties are also inflation-adjusted for contributions to tax-free investments, the retirement funds deduction cap and capital gains tax (CGT) exclusions.

An increase in the annual tax-free savings account contribution limit to R46 000 (from R36 000) and the limit to retirement fund deductions from R350 000 to R430 000 are encouraging South Africans to save more.

Capital gains tax limits

The Budget also proposes increasing the annual exclusion on capital gains tax from R40 000 to R50 000 for individuals and special trusts, and the annual exclusion for individuals in the year of death from R300 000 to R440 000.

The exclusion that applies on the disposal of a primary residence will increase from R2 million to R3 million. Very good news for anyone planning on selling their home.

Corporate tax

The corporate tax rate remains unchanged at 27%. The global minimum tax rules will be implemented in 2026/27, a move expected to raise around R2 billion (down from an earlier estimate of R8 billion) by reducing profit shifting by multinationals.

More good news for businesses, especially small companies, is the increase in the VAT registration threshold to R2.3 million (previously R1 million), effective from 1 April 2026.

In addition, asset disposals by small businesses of as much as R15 million will be exempt from capital gains tax, a 50% increase on the current limit.

The annual turnover limit for turnover tax is also adjusted for inflation (from R1 million to R2.3 million). In addition, the restriction on tax year-end dates will be removed to make the turnover tax regime more attractive.

A proposed review of the urban development zone tax incentive will explore better support for affordable housing developments in urban areas.

Sin taxes & fuel

Alcohol, tobacco, and vaping excise duties already increased in line with inflation (3.4%), effective 25 February.

Under consideration is a national online gambling tax, proposed at 20% on gross revenue, for further consultation during 2026.

The customs and excise levies on fuel remain unchanged but fuel levies have increased, with the general, Road Accident Fund and carbon tax levies up for both petrol and diesel from 1 April.

Other tax proposals

Local investors diversifying offshore will appreciate the increase in the single discretionary allowance (SDA) for individuals from R1 million to R2 million per calendar year.

The Budget also proposes that investment returns generated by regular collective investment schemes (CIS) and retail investment hedge funds be taxed as capital, to encourage savings and to provide the industry with tax certainty.

Managing your taxes in the new tax year

As these tax proposals are implemented, along with other technical amendments contained in the 2026 Budget, taxpayers are likely to require professional tax advice.

We invite you to rely on our expertise and advice to determine the impact of Budget 2026 on your tax affairs.

Navigating the 2026/27 SARS Tax Landscape with Experts

Thu, 05 Mar 2026 09:08:48 GMT

The 2026/27 tax year introduces several significant updates for South African taxpayers. The latest SARS tax pocket guide outlines adjustments to tax brackets, rebates, and various levies designed to account for the effects of inflation.

Individual Tax Brackets and Thresholds

For individuals and special trusts, the tax rates for the period of 1 March 2026 to 28 February 2027 start at 18% for taxable income up to R245,100. This progresses through several tiers, reaching a maximum of 45% for taxable income exceeding R1,878,600. To assist taxpayers, the primary rebate is set at R17,820. Individuals aged 65 and older qualify for a secondary rebate of R9,765, and those 75 and older receive an additional tertiary rebate of R3,249. Consequently, the tax threshold for individuals below age 65 is R99,000, increasing to R153,250 for those aged 65 to 75, and R171,300 for those 75 and above.

Corporate Tax and Small Business Rates

The standard corporate tax rate is 27% of taxable income for years of assessment ending between 1 April 2026 and 31 March 2027. Small Business Corporations benefit from a specialised tiered structure: 0% for income up to R99,000, 7% for income between R99,001 and R365,000, and up to 27% for income above R550,001. Micro businesses may qualify for Turnover Tax, starting at 0% for turnover up to R600,000 and reaching 3% for turnover above R1,400,000.

Strategic Savings and Investment Limits

The annual limit for tax-free investments has increased to R46,000. Amounts received from these investments are exempt from income tax and capital gains tax. Retirement fund contributions remain deductible up to 27.5% of the greater of remuneration or taxable income. This deduction is further limited to the lower of R430,000 or 27.5% of taxable income before including taxable capital gains.

Capital Gains and Dividends

Capital gains on asset disposal are included in taxable income, with a maximum effective rate of 18% for individuals and 21.6% for companies. Individuals receive an annual exclusion of R50,000. Dividends received from South African companies are generally exempt from income tax, but a dividends tax of 20% must be withheld by the paying entities.

Individual Tax Brackets and Thresholds

The 2026 budget introduces several levy increases affecting daily costs:

The general Fuel Levy increases by 9 cents per litre for petrol and 8 cents per litre for diesel.
The Road Accident Fund Levy rises by 7 cents per litre for both petrol and diesel.
Carbon Tax on fuel increases by 5 cents per litre for petrol and 6 cents per litre for diesel.
Excise duties on alcoholic beverages and tobacco products increase by 3.4%.
For business travel, the deemed expenditure for local meals and incidental costs is R595 per day.

VAT and Compliance Updates

The VAT compulsory registration threshold has been raised to R2.3 million per annum. Voluntary registration remains available for vendors making taxable supplies exceeding R120,000. Regarding interest, the rate for late or underpayment of tax is 10.25% p.a. as of 1 March 2026.

Click below to find out more about how these specific 2026/27 tax adjustments will impact your financial planning for the upcoming year.

Your Year-End Tax Checklist: Smart Moves Before 28 February

Tue, 24 Feb 2026 05:00:14 GMT

"The avoidance of taxes is the only intellectual pursuit that still carries any reward. (John Maynard Keynes)

1. Boost your retirement savings

Contributing to a Retirement Annuity (RA) before 28 February can reduce your taxable income and grow your long-term wealth. If you haven’t maximised your annual tax deduction for contributions to retirement funds, this is a good moment to review it. Got any questions – ask us.

2. Top up your Tax-Free Savings Account (TFSA)

Each member of your family (even minor children) can have a TFSA and you can contribute up to R36,000 per year to each account. Interest and dividends paid from and capital growth inside a TFSA are completely tax-free, making it one of the most powerful long-term investment tools available.

3. Consider making a section 18A donation

Donations to qualifying Public Benefit Organisations (PBOs) and some other donees that are approved to issue section 18A receipts, are tax-deductible (up to 10% of taxable income). If you’re planning to give, now is a good time to do so.

4. Review your investment gains and losses

If you’ve realised capital gains this year, you may be able to offset them by realising losses on underperforming investments. This is known as “tax‑loss harvesting” and can help reduce your capital gains tax. If you’re unsure if this applies to you, we can definitely assist. There is also a CGT exclusion (up to R2 million in gains) on the sale of your primary residence so the timing of your house sale may have big tax implications (positive or negative).

5. Check your interest income

South Africans enjoy an annual local interest exemption of R23 800 (R34 500 for individuals 65 or older). If your interest income is close to or above the threshold, it may be worth reviewing where your cash is held and whether a more tax-efficient structure makes sense. Our advice here could be crucial.

6. Gather all your Tax Certificates

Make sure you have the necessary documents from your investment platforms, including:

Interest and dividend statements
Capital gains summaries
RA and TFSA contribution reports

These will make your tax return smoother and help avoid SARS mismatches.

7. Review medical and other allowable expenses

If you’ve had out-of-pocket medical costs or other deductible expenses, gather those records now so they’re ready for your return.

8. Provisional taxpayers: Double‑check your estimate

If you’re a provisional taxpayer, your second payment is due at the end of February. Ensuring your estimate is accurate can help you avoid penalties later.

A stitch in time saves nine

If you’d like help reviewing any of these items or want to explore opportunities specific to your financial plan, we are here to support you.

Why Doing Nothing May Be the Best Thing You Can Do

Mon, 23 Feb 2026 05:01:02 GMT

“The difference between successful people and really successful people is that really successful people say no to almost everything.” (Warren Buffett)

In a world where constant activity is seen as progress, the real high-performing leaders are doing something different. These entrepreneurs, CEOs and founders understand that not every signal deserves a response, not every problem requires an immediate solution, and not every opportunity is worth pursuing. In volatile markets, noisy feedback loops and emotionally charged leadership environments, doing nothing can be the hardest and smartest move you’ll ever make. Here’s why.

You don’t make decisions with insufficient information

If the data is weak, contradictory, or incomplete, action often locks in the wrong conclusion. High-performing founders pause to gather better inputs, test assumptions, or wait for the environment to stabilise. Acting early may feel decisive, but it increases the chances of rework and wasted capital. Don’t hesitate to consult with your accountant or other experts while you wait to ensure all data is as complete as possible before acting.

You avoid solving problems that aren’t real yet

Many issues in start-ups resolve on their own: customer complaints from edge cases, short-term revenue dips, internal friction during growth... Founders who intervene too early often create processes, complexity, or cost for problems that would have disappeared organically. Strategic inaction prevents over-engineering.

You delay irreversible decisions

Hiring senior executives, firing key staff, pivoting your business model, or entering long-term contracts are all hard to undo. High-performing founders deliberately slow these decisions. Waiting allows emotions to settle and consequences to become clearer. Speed matters, but not when mistakes are expensive.

You prevent emotional decision-making

Founders are most likely to act badly when under stress. Losing a client, missing a target, or facing criticism is guaranteed to heighten feelings. Strategic inaction creates distance between the stimulus and the response. This reduces decisions driven by fear, ego, or the need to appear in control.

You let existing systems run before changing them

When something underperforms, the instinct is to intervene. You would be better off first asking whether the system has had enough time to work. Premature changes make it impossible to know what is actually effective. Doing nothing (for a while) is often the fastest way to learn.

You conserve focus and organisational capacity

Every new initiative pulls attention away from existing priorities. Try to recognise that your company’s capacity is limited. By choosing not to act, you will protect delivery on what already matters. This is especially important as teams scale and coordination costs increase.

You use time as a risk-management tool

Waiting can reduce uncertainty. Competitors reveal their strategies. Markets clarify. Customer behaviour becomes more predictable. Strategic inaction is often about allowing risk to resolve itself before committing resources.

The bottom line: Choosing not to act is still a decision

Doing nothing is not neutral. It must be intentional, reviewed, and time-bound. Experienced entrepreneurs track what they are choosing not to do and reassess regularly. Remember, strategic inaction works only when paired with attention and accountability.

So, You Want to Diversify? You Might Be Making a Mistake

Sat, 21 Feb 2026 05:00:30 GMT

“Any intelligent fool can make things bigger and more complex. It takes a touch of genius, and a lot of courage, to move in the opposite direction.” (Statistician and economist, E.F. Schumacher)

Diversification makes intuitive sense. When one revenue stream falters, another should compensate. When one market cools, another heats up. In theory, it’s prudent. In reality, however, as businesses accumulate products, geographies, customer segments and internal processes, decision-making slows and execution weakens. What began as risk management turns into managerial overload. The uncomfortable truth is that sometimes executing fewer things extraordinarily well, for longer than competitors can tolerate, is sometimes the path to true success.

Whether you’re selling koeksisters from your garage or leading a multinational tech behemoth, the ten pointers below are worth taking note of.

Diversification feels safer than it actually is

Diversification offers psychological comfort. It gives leaders the sense that they are “covered” from uncertainty. But safety in theory is not safety in execution. Each new product, market or channel introduces its own operational demands, regulatory requirements, customer expectations and failure points. Risk doesn’t disappear, it fragments. Instead of managing one or two critical risks deeply, leadership is forced to shallowly monitor many. The illusion of safety often masks a rise in systemic fragility.

Complexity is a hidden tax on performance

Every additional business line adds meetings, reporting layers, decision pathways and coordination costs. These costs rarely appear cleanly on an income statement, but they erode margins all the same. Management attention becomes diluted. Strategic conversations shift from “How do we win?” to “How do we keep everything from breaking?”

Focus is a force multiplier

Focused companies learn faster. They serve customers better because feedback loops are tight and clear. When something goes wrong, causes are easier to identify and fix. When something goes right, it can be scaled with confidence. Diversified organisations often struggle to replicate this clarity. Success in one unit is obscured by mediocrity in others. Focus doesn’t just improve execution, it sharpens strategic judgment.

Diversification often masks unresolved core weaknesses

One of the most under-discussed drivers of diversification is discomfort. When growth slows in the core business, expanding outwards can feel more exciting than fixing what’s broken. Unresolved issues, weak unit economics, unclear positioning, operational inefficiencies … These things don’t vanish when you diversify, they multiply to new areas. The same leadership blind spots and process failures are often replicated across a wider footprint. If you’re wondering whether diversification might be hurting you, feel free to ask for our input – sometimes a fresh perspective is all it takes.

Operational excellence doesn’t scale sideways

What works brilliantly in one context rarely translates seamlessly into another. Different customer segments require different value propositions. Different geographies demand different logistics, pricing structures and cultural understanding. Founders often underestimate how bespoke excellence truly is. Horizontal expansion assumes transferable competence but in reality, each new area requires its own learning curve. The result can be a portfolio of businesses that are all “good enough,” but none are exceptional.

Small and fast – Or big and slow?

Speed is one of the greatest advantages of entrepreneurial organisations. Diversification erodes it. As organisations grow broader, decisions require more stakeholders, more data reconciliation and more compromise. What once took days now takes weeks. Opportunities expire while you’re trying to coordinate a Teams meeting to discuss them. In fast-moving markets, this loss of velocity can be fatal. Competitors with narrower focus can outmanoeuvre diversified incumbents simply by deciding, and acting, faster.

Diversification can dilute brand meaning

Strong brands stand for something specific. They occupy a clear mental position in the customer’s mind. Diversification blurs that signal. Customers struggle to understand what the company truly excels at. Is it premium or mass? Specialist or generalist? Innovative or reliable? When brand meaning weakens, pricing power follows. What was once differentiation becomes confusion – and confusion is rarely profitable.

The most resilient businesses often look concentrated, not diversified

History is filled with companies that endured precisely because they stayed narrow. They dominated niches, controlled quality obsessively and reinvested relentlessly into their core advantage. Their resilience came not from spread, but rather from deep customer relationships, deep expertise and deep operational mastery. Concentration allowed them to absorb shocks because their fundamentals were strong, not because they were hedged.

Simplicity is not stagnation

Rejecting diversification does not mean rejecting growth. It means choosing growth paths that reinforce the core rather than distract from it. Vertical integration, geographic expansion of a proven model, or deeper penetration of the same customer segment can all drive scale without overwhelming complexity.

Don’t ask “Can we?” but “Should we?”

Most businesses diversify because they can, not because they should. Capital is available. Talent is curious. Opportunities appear abundant. But the cost of complexity is rarely paid upfront, it is paid slowly, in lost clarity, slower execution and diminished excellence. Leaders who understand this ask a harder question: what must we protect at all costs and what are we willing to walk away from?

Your Tax Deadlines for February 2026

Fri, 20 Feb 2026 06:07:59 GMT

February 2026:

06 February – PAYE submissions and payments
25 February – VAT manual submissions and payments
26 February – Excise duty payments
27 February – VAT electronic submissions and payments, CIT Provisional Tax payments and PIT Provisional Tax payments where applicable.

February Provisional Tax Deadline: How to Avoid Stiff Underestimation Penalties

Thu, 19 Feb 2026 13:34:42 GMT

“Today, it takes more brains and effort to make out the income tax form than it does to make the income.” (Alfred E. Neuman, Mad Magazine Mascot)

Provisional tax is among the most confusing aspects of the tax regime – and it’s also the most heavily penalised. There are numerous declarations and payments overlapping throughout each year, not to mention a raft of rules and exceptions.

The next provisional tax deadline for the 2026 tax year (coming up on 27 February 2026) is also the trickiest and most important provisional tax deadline of the year. This is because the income estimates declared must be highly accurate. A stiff 20% under-estimation penalty can apply if the declared income estimate doesn’t fall within 80–90% of the actual taxable income.

Our professional assistance is your ticket to avoiding non-compliance and stiff penalties.

Must you pay provisional tax?

Companies are automatically provisional taxpayers.
Individuals who receive income other than a salary may also be provisional taxpayers, depending on various criteria. This includes sole proprietors and may include members of CCs and company shareholders/directors that earn income not fully subject to PAYE. SARS places the onus on you to determine if you are liable for provisional tax, so it’s best to check your status with us if in any doubt.
Other taxpayers include trusts and any person notified by the SARS Commissioner. Exceptions and thresholds apply in every instance, so be sure to verify with our team of tax professionals.

What is provisional tax?

Provisional tax is not a type of tax, but rather a way of paying an annual income tax liability in two or three payments during a tax year. This prevents taxpayers from facing one large tax bill at year-end when the annual personal income tax (PIT) return or corporate income tax (CIT) return is filed.

Making provisional tax payments allows you to spread the tax liability across the year. But it also creates additional administrative obligations (calculations, returns), and increases the risk of penalties – particularly under-estimation penalties.

Three provisional tax payments each year

The following rules apply to individuals and to companies / trusts with a year of assessment running from 1 March to 28 February:

First payment: Due within six months of the start of the year of assessment. For the 2026 year (which commenced on 1 March 2025), this was due end August 2025. This forward-looking payment is based on half of the total estimated tax for the full year, less employees' tax already paid and any applicable tax credits and rebates.
Second payment (due 27 February 2026): This is retrospective and based on the total estimated tax for the full tax year, less provisional tax and employees' tax already paid in the first period, and any applicable tax credits and rebates. The rules are far stricter with harsh penalties for under-estimating.
Third payment (optional): Can be made after the end of the tax year but before the issuing of the annual income tax assessment by SARS each year, typically by 30 September.

Bear in mind that SARS can ask for your estimate to be justified, so you'll need accurate records of all source documents and calculations used. SARS can even increase the estimate if they’re dissatisfied with your amount, and this is not subject to objection or appeal.

Further penalties to watch out for

Late filing: If an IRP6 is filed more than four months after the deadline, SARS will consider a 'nil' return to have been submitted. Unless actual taxable income really was zero, an under-estimation penalty will also apply.
Interest charges: Interest will be levied on underpayment of provisional tax resulting from under-estimation.
Late payment penalty: Not making provisional tax payments on time will result in an immediate 10% penalty, regardless of whether it's not paid at all or simply paid late.

Rely on our expert assistance

The rules of provisional tax are daunting and confusing, yet SARS holds provisional taxpayers responsible for their tax affairs.

SARS recommends that the provisional tax estimate is determined sensibly and by careful reasoning and judgement, in a mathematical manner, and using experience, common sense and all available information.

Our professional assistance is invaluable as you prepare and review your provisional tax and income tax returns prior to submission. We proactively take care of all necessary steps to correctly calculate estimated taxable income and submit timeously – in the process saving you time, money, and hassle.

Our Top Tips for Communicating Price Changes

Fri, 23 Jan 2026 05:00:28 GMT

“People don’t mind price increases as much as they mind surprises.” (Robert Cialdini, Psychologist and Business Author)

Costs go up and so do prices. And yet most businesses raise prices later than they should. A global study by Simon-Kucher found that less than a quarter of companies adjust prices multiple times a year as needed, with almost 30% discussing price changes only once annually, and 26% waiting for new customer tenders or contract expirations.

By the time owners take action, margins are stressed and the communication feels rushed. This is unfortunate, because studies show that a thoughtful considered, and timeous approach is the difference between a customer accepting a change and walking away.

“We’ll lose customers if we raise prices”

This fear is common, but it’s not grounded in the research. Studies from the Harvard Business Review note that when customers leave after a price change, it’s usually because the business has stayed quiet about the reason. Silence erodes trust. People assume the worst, even when the increase is modest.

The same study revealed that most customers accept changes if they still see value and understand why the adjustment exists. Communication is key. Your customers should know what costs shifted and what value you’ve added. Keep the message simple enough that a customer could repeat it back without confusion.

“Customers won’t care about the reason”

Owners often assume customers ignore explanations. Evidence says the opposite. Research from McKinsey & Company found that when companies explain the drivers behind price changes, such as rising input costs or service improvements, customer trust remains stable, even when the increase is noticeable.

People don’t need all the details, but they definitely do want you to add context. A short, fact-based explanation helps them understand that the decision wasn’t arbitrary or simply based on greed.

“If we apologise enough, customers will be less upset”

For many owners, the first inclination is to apologise to the customer for the added pressure the price changes will have on their lives. Trying to soften the blow with an apology frames the price change as a mistake rather than a strategic choice. Customers may wonder whether the change is temporary or negotiable, thereby weakening your position.

This is all backed up by researchers writing in the Journal of Service Research who note that apologies work best when something has gone wrong. You can acknowledge the impact on customers without presenting the change as an error. Aim for respectful, not remorseful.

“We should wait until the last minute to avoid backlash”

Delaying the announcement doesn’t reduce resistance; it magnifies it. Short-notice announcements leave customers scrambling. If the increases catch them off guard, this can lead to resentment, something that’s far more likely to lead them to change suppliers than the price change itself. Giving your customers timely notice shows that you respect their planning and cash flow.

You should aim to communicate price increases as early as possible. Even a few weeks’ notice can make the shift easier. Use one message delivered consistently across email, invoices, signage, and your website so there’s no confusion.

“Once we announce the increase, the conversation is over”

Many businesses make their price announcement and stop there. Whether from fear of pushback or simply a desire not to discuss it, their refusal to discuss the price changes with customers can often lead to unanswered questions and confusion, leaving space for assumptions to grow.

Studies from Gartner highlight that businesses with strong post-announcement engagement retain more clients than those who treat the update as a one-way message. You should always be prepared for questions. Have a short script or FAQ ready. Make sure your team is aligned so they answer consistently. A calm explanation helps people adjust without feeling ignored.

“The only way to justify an increase is by adding new features”

Price increases don’t always need to come with updates or added features. Often, they simply reflect the realities of the economy. Businesses that fail to keep pace eventually struggle to maintain service quality, and people understand that.

This does not mean that you shouldn’t tell customers when price changes are related to improved offerings. Telling customers about upgrades gives them something concrete to weigh against the higher price. Under-explaining value is as harmful as over-explaining it.

“A single announcement will do”

People miss emails. They skim invoices. They forget dates. A single notice is rarely enough, even when well written. When a message is clear and consistent, customers don’t feel overwhelmed. Using multiple channels for communication has been shown to reduce complaints because no one feels blindsided. You should always aim to send your message through two or three channels, spaced out over time. Keep each version short and factual and make sure they each reflect the same message. Clarity prevents conflict.

What’s the takeaway?

Customers respond well when they feel informed rather than managed. They respond poorly when communication is rushed, vague, or emotional. When customers know the reasons behind changes, they are much more likely to stay loyal even when the price goes up.

If you want help reviewing your pricing structure, chat to us.

Outlook 2026: Moving Forward with Confident Resilience

Wed, 21 Jan 2026 05:00:37 GMT

“The outlook is clear: resilience and innovation will define Africa’s growth story.” (Ignatius Sehoole, CEO of KPMG South Africa)

“A continent brimming with optimism.” This is how KPMG’s 11th Africa CEO Outlook describes Africa.

Among the African CEOs surveyed, 63% expressed optimism about their country’s growth prospects and 78% expressed strong business confidence. Over the short term, 98% expect business expansion and 86% are likely to pursue acquisitions.

“African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies,” explains Ignatius Sehoole, CEO of KPMG South Africa.

Most CEOs globally (79%) also say they are optimistic about their own organisations’ prospects and the majority anticipate rising revenues over the next three years.

Like their African counterparts, they are doubling down on AI, talent investment and ESG as the keys to resilience and growth.

Common challenges & shared priorities

CEOs, globally and in Africa, face very similar challenges. This has made them more deliberate when deciding how to channel their resources.

Investment priorities for global and Africa CEOs

Source: 2025 Africa CEO Outlook - KPMG South Africa

In addition, in Africa, CEOs are increasingly prioritising intra-African trade and market expansion on the continent.

For African and global CEOs heading into 2026, AI is a top strategic priority.

26% of African CEOs plan to allocate more than 20% of their annual budget to AI in the next 12 months, almost twice the global average of 14%.

This high level of investment by African CEOs reflects a shift in mindset, with AI being viewed not only as a tool for future growth but as an immediate lever for operational efficiency, better decision-making, and long-term resilience.

To deploy and scale AI, African organisations are faced with three options: build, buy or partner. “Each organisation must weigh the pros and cons of building, buying, or partnering for AI solutions. There is no one-size-fits-all approach. The right strategy depends on the organisation’s existing capabilities, risk appetite and strategic objectives,” explains Joelene Pierce, CEO Designate of KPMG South Africa.

Talent in the age of AI

Among African CEOs surveyed, 88% expect to increase headcount over the next year, and 62% are focusing on retaining and re-training high-potential talent. The majority (81%) believe that upskilling in AI will directly impact their success, and more than two-thirds (67%) are redeploying staff into AI-enabled roles.

These numbers, too, closely reflect global perspectives, with 92% of CEOs expecting to increase headcount next year, and 77% agreeing that AI upskilling will directly impact business success. Already, 71% are focusing on retaining and retraining high-potential talent, and 59% are redeploying staff into AI-enabled roles.

ESG and sustainability

Despite regulatory complexity, African CEOs remain committed to Environmental, Social, and Governance goals. Almost half (46%) are aligning sustainability goals with core business strategies, 51% are prioritising compliance and reporting, and 74% are using AI to reduce emissions and improve energy efficiency.

Globally, CEOs are also indicating rising confidence in meeting climate targets, with 61% saying they are on track to hit their 2030 net-zero targets. In addition, 65% indicate that they have fully embedded sustainability into their business and believe it is critical to their long-term success.

Confident resilience

Most CEOs (59%) say that expectations and complexity of their roles have evolved significantly in the last five years, and 80% feel under more pressure to ensure long-term business prosperity.

Yet, even with change and challenge as the “new normal”, CEOs are actively building resilience by investing in AI, talent, and sustainable growth strategies, and are moving forward confidently to greater success in the year ahead.

Harnessing the New Year’s “Fresh Start Effect” for a Great 2026

Mon, 19 Jan 2026 05:00:48 GMT

“A fresh start is not a place, it is a mindset.” (Jordan Peterson)

The beginning of the new year can be more than another Monday morning: it can be a powerful psychological reset button.

The ‘fresh start effect’ comes after milestones, like New Year's or anniversaries, that help people believe they can become better versions of themselves – and this applies just as powerfully to teams as it does to individuals.

It’s as if a mere calendar flip wipes the slate clean, making new commitments feel more achievable and reducing the emotional weight of past disappointments.

When your team returns from the holiday break, they aren’t just rested – they are primed for change, and feeling capable of achieving goals that might have seemed daunting just weeks earlier.

Capturing the moment: Practical strategies for January 2026

The “fresh start effect” creates a window of heightened motivation, but it is only temporary. Research consistently shows that initial New Year’s enthusiasm naturally fades without proper structure and ongoing engagement.

The challenge then is to convert this early motivation into sustainable systems.

Timing matters. Schedule your most important organisational initiatives, strategic planning sessions, and team goal-setting meetings in these early weeks of January. The psychological conditions are optimal right now, as your team feels capable, refreshed, and ready for change. Use this window to establish the habits, routines, and systems that will carry you through the entire year.

Start by setting specific and measurable goals. Clear and quantifiable goals significantly improve employee engagement and productivity. Break annual targets into smaller quarterly or monthly milestones to prevent overwhelm and provide regular opportunities to maintain momentum and celebrate progress.

Team-based goal setting enhances overall performance because it creates accountability, builds collective commitment, and ensures that everyone understands how their individual efforts contribute to larger team goals.

Building sustainable momentum beyond January

The fresh start effect can be a catalyst for creating systems, habits, and cultural practices that sustain performance all year long.

Visual progress tracking taps into our psychological need for achievement and keeps the momentum alive. Implement regular check-ins and progress reviews at least monthly. These touchpoints maintain accountability, allow for course corrections, and provide opportunities to celebrate wins.

Creating fresh starts all year round

You can also engineer temporal landmarks throughout the year. Things like monthly reset days, quarterly planning sessions, or team offsite retreats… These moments provide mini fresh starts that can reignite motivation when energy naturally dips.

Use these inflection points for team brainstorming sessions, strategic pivots, or launching new initiatives. The psychology works the same way: you’re creating a sense of temporal separation that makes change feel achievable.

The long game: Making 2026 different

The new year brings a gift: a team that believes change is possible and feels capable of achieving goals.

What you do in the next few weeks – the systems you establish, the habits you build, and the accountability you foster – could significantly impact your team’s performance for the entire year ahead.

Your Tax Deadlines for January 2026

Thu, 15 Jan 2026 14:46:43 GMT

07 January – PAYE submissions and payments

19 January – End of Filing Season 2025 for Provisional Taxpayers and End of Filing Season 2025 for Trusts

23 January – VAT manual submissions and payments

29 January – Excise duty payments

30 January – VAT electronic submissions and payments & CIT Provisional Tax payments where applicable.

The 5 Questions You Must Ask Before Making Your Business Resolutions

Thu, 15 Jan 2026 13:46:59 GMT

“If you can’t measure it, you can’t improve it.” (Peter F. Drucker, Business Management Guru)

Entrepreneurs are hardwired to look forward, and chase the next win. This constant looking ahead can create a costly strategic blind spot. When you rush past December’s data to write January’s plan, you run the risk of missing the critical lessons already paid for in time, money, and stress.

A comprehensive review gives you the opportunity to pinpoint previous issues and create solid strategies for growth. Without this backward glance, your resolutions become a wishlist disconnected from operational reality. The key is turning reflection into a data-driven process, not a feelings-based one. Before you look for your new year’s resolutions, it’s therefore wise to sit down and answer these five precise questions.

1. Which goals did we actually achieve last year, and what specific behaviours drove those wins?

The most common mistake in goal review is simply ticking boxes. You hit the revenue target – great. But why? While hitting a financial benchmark is great, understanding which tactics got you there is the real win.

Instead of simply analysing KPIs, you should compare your initial goals with your final metrics. Analyse the data to understand what's working and what isn't. Was the goal achieved because a specific marketing campaign worked, or did an unexpected market event carry the result?

By identifying the exact steps, processes, or resource allocations that delivered the win, you can prevent yourself from inadvertently eliminating a high-performing strategy in the new year or, worse still, believing a non-repeatable outcome is a sustainable strategy.

2. Where did we waste the most resources?

This question requires an honest, non-emotional audit of your financial and calendar commitments. It’s a review of efficiency, not just income. Beyond the simple rand amount, evaluate the return on investment for projects and tasks.

As your accountants, we can help by examining your cash flow, expenses, and budget adherence. Which recurring expense failed to generate its expected value? Is there enough money coming in, and are you staying within budget?

The next step is to look at which project delivered disappointing results compared to the time and effort it consumed. By identifying the single biggest time waster of the year for you and your key staff, you can cut inefficiencies and free up resources for genuinely productive initiatives.

3. What did the customer or market teach us that changes our fundamental approach?

Growth depends on staying relevant and competitive. Your business exists to solve a customer problem, and that problem and the best way to solve it change constantly. The information you need to adapt is already in your email inboxes, support tickets, and sales reports.

First, analyse your customer feedback. By looking for common themes of satisfaction and dissatisfaction, you can open up areas for new services and pinpoint areas where your process is disappointing your biggest clients. Follow this up with a thorough audit of the latest industry trends and competitor actions. This will help you keep abreast of market shifts.

Your biggest revelation for the new year often lies in the data points you tried to ignore because they conflicted with your original plan. Use this insight to adapt your business model and strategies proactively.

4. What project or initiative did we start but fail to finish?

Every entrepreneur has a graveyard of half-finished projects. These are not just lines on a to-do list; they are sunk costs that continue to absorb cognitive load and drain mental bandwidth. You must address them before you plan the next project.

Reflect on ideas that were shelved, dropped, or simply allowed to drift. Was the goal too ambitious, did you lose interest, or did more pressing tasks take priority? The reason often lies in poor prioritisation or a fear of letting go.

Look at the list of unfinished items and make a binary decision for each:

Revive: Commit to a concrete, time-bound plan for completion, complete with allocated resources.
Kill: Officially terminate the project. Archive the files, inform the team, and close the loop.

Letting go of an unfulfilled goal removes operational and mental clutter. Avoid the trap of carrying dead weight into January.

Do not confuse a bottleneck with a challenge. A challenge is unique; a bottleneck is the same hurdle that surfaces repeatedly, slowing down every initiative. This could be a lack of standard operating procedures (SOPs), a poor communication structure, or an outdated software system.

The first step to eliminating a bottleneck is pinpointing the area that constantly holds up progress and causes stress. For example: “Our hiring process is inconsistent.” Or: “Data collection for client reports takes two full days.” Setting aggressive new goals on top of a broken system guarantees failure. Address the system first. If your resolution is to double output, but your internal approval process is the issue, a goal to fix the process is the only resolution that matters.

Moving from reflection to resolution

The purpose of these five questions is to clean the slate. By identifying proven wins, cutting wasted resources, integrating market lessons, clearing unfinished projects, and fixing critical bottlenecks, you can transition from hopeful resolution to strategic certainty.

Want help with making it happen? Our door is always open…

Moving from Freelancer to Employer: The Complete Guide

Fri, 05 Dec 2025 12:16:27 GMT

“You can dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality.” (Walt Disney)

Faced with rising demand, every successful solo-business person or freelancer will start wishing they had someone around who could help. But deciding to hire means planning for ongoing salary costs, statutory contributions, written contracts and record-keeping. Do it deliberately, with preparation and you will gain capacity and potentially, increased profit. Do it without preparation and you can pick up expensive legal and tax problems.

When’s the right time?

First, make a list of tasks you believe you could hand over. Then look for areas that could be improved if you had someone to help with them. For example, if admin, scheduling or basic service work is stopping you from completing billable hours, then that’s a clear sign that something needs to change. You may want to consider hiring if you find yourself regularly turning away clients, or when your quality slips because you are over-stretched.

You should also consider whether you have a steady pipeline that has areas of potential growth. If the need is temporary, a contractor might be a better bet.

Taking that next step

If you have decided to hire, then the next step is calculating just how much you can afford to pay. A salary is not just the monthly wage. You need to include a budget for additional costs you may need to carry, like equipment, training and the chance that the hire won’t be productive from the outset.

Who to hire first

When choosing who to hire, you should closely examine just where you’re getting stuck and then look for an employee who removes the biggest bottleneck. Common first hires include an administrative assistant to help with invoicing, scheduling and emails and a junior specialist or apprentice who can do the routine parts of your core service.

Your job advert should cover that bottleneck and list the main tasks and skills required. You should avoid the temptation of writing vague or overloaded job descriptions in the hope of finding a jack-of-all-trades. While these people may exist, they won’t be looking at entry-level jobs.

Key registrations as an employer

Before the first payday, you will need to register as an employer with SARS so you can withhold PAYE (pay-as-you-earn) tax.

You will also need to register with:

The UIF (Unemployment Insurance Fund) where both employers and employees contribute 1% of pay
The Compensation Fund (COIDA), which covers workplace injuries
If your annual payroll exceeds R500,000 you must register for and pay the Skills Development Levy (SDL) – 1% of payroll.

After that, you should set up your payroll processes as these need to be in place before the first pay run. Payroll mistakes are common and costly and your accountant (that’s us) can help you to set these up correctly.

Contracts and labour law basics

Every employee should ideally have a written contract that sets out salary, hours, duties, leave and notice period. Even small, first-time employers must follow The Basic Conditions of Employment Act (which sets minimums for working hours, leave, and overtime) and the Labour Relations Act, which governs fair dismissal procedures and dispute resolution.

If you need help, ask us.

Tax obligations and paperwork

As an employer you must deduct PAYE from salaries and submit monthly EMP201 returns to SARS, pay your share of UIF and submit monthly UIF returns, pay SDL if you meet the threshold and submit the relevant returns, issue IRP5s to employees at year-end and reconcile with SARS (EMP501).

While this may sound like a lot, as your accountants, we are here to help with it all.

Legal structures

Now might also be the time to restructure the way you do business. A sole proprietor can hire staff, but you remain personally liable for the business and any mistakes your employees make can become a very real and very personal problem. A private company (Pty) Ltd meanwhile separates business liabilities from personal assets and may be a sensible step once turnover and payroll grow. You can register a company with CIPC if you want that separation. Other options include a partnership and a trust. Not sure which to choose? Ask us.

Last word

This may all sound like a lot, but try not to get bogged down in the details. Hiring is a practical step toward growth. It adds cost and complexity, but the right staff member can free you up to bring in more work, raise standards and, ultimately, build a business that lasts. Plan, register, document and manage carefully, and your first employee will be a value-add rather than a risk.

And remember – we are here to help with all of the technical aspects.

Outstanding Tax Debt? SARS’ Expedited Debt Compromise Ends 31 December 2025

Fri, 05 Dec 2025 12:13:38 GMT

“The South African Revenue Service is always ready to assist taxpayers to fulfil their legal obligations.” (SARS)

Acknowledging that taxpayers often find it difficult to settle tax debt due to financial challenges, SARS has launched an expedited debt compromise process to help eligible taxpayers settle outstanding tax debts swiftly and on more favourable terms.

The normal debt compromise process remains available to all taxpayers, and learnings from this expedited process will be used to enhance the broader system.

What is a debt compromise?

A compromise is a written agreement between SARS and a taxpayer in which SARS agrees to accept a reduced amount as full and final settlement of a tax debt.

Once the taxpayer pays the agreed amount and complies with the terms, SARS waives the balance of the debt. However, if the taxpayer defaults or fails to remain compliant, SARS can reinstate the full debt.

Expedited debt compromise eligibility criteria

The process applies to non-disputed tax debts older than 12 months.
You must be a client of a registered tax practitioner.
Your tax returns must be up to date (even if payment is outstanding).
The following exclusions apply: entities subject to specific legal processes (such as liquidations, estates, and business rescue cases), companies that are deregistered, cases subject to criminal investigation and audit, as well as cases within the write-off process, taxpayers who have had a compromise in the past three years, and taxpayers who have the means to pay but refuse to do so.

Submission requirements

Taxpayers applying for the expedited tax debt compromise process must provide comprehensive relevant supporting documentation with their applications, which must be submitted by 31 December 2025.

These documents include:

Latest Annual Financial Statements (not older than one year)
Last six months' bank statements
Cashflow forecast for 12 months
List of Assets and Liabilities at market value
Debtors’ age analysis
Details of any connected persons
Details of assets disposed of in the last three years
Disclosure of future or contingent interests in assets
Details of assets under the taxpayer's control (including through trusts)
Current and projected income for the next three years
Application letter with clear motivation, including the proposed settlement offer amount, and the source of funds to pay the offered amount
Collection Information Statement (CIS) request with reasons and proof to compromise the debt.

It is important that disclosures are accurate – if they aren’t SARS might not even consider the application.

SARS has committed to resolving qualifying applications within four weeks, using dedicated teams and enhanced workflow management.

Approved compromise settlements may be paid either in full (once-off payment), or in instalments as agreed by SARS.

Act now to avoid escalation

From 1 January 2026, SARS will escalate enforcement against taxpayers who remain non-compliant and have not applied for compromise. Such enforcement may include civil judgments against the taxpayer, writs of execution, collection of money from third parties such as banks, attachment of taxpayer assets, holding directors or members personally liable for the debt, sequestration or liquidation of the taxpayer, or preservation of assets against the debt. To support this intensified enforcement, SARS is engaging 260 legal collectors and 30 legal practitioners.

If you are struggling with long-overdue tax debt, this expedited tax debt compromise process may offer your best chance to finally resolve it – on favourable terms, nogal.

Contact us without delay, as applications close on 31 December 2025 and can only be submitted by registered tax practitioners.

NPO? NGO? NPC? PBO? What’s the Difference Anyway?

Fri, 05 Dec 2025 12:11:42 GMT

“A rich man without charity is a rogue; and perhaps it would be no difficult matter to prove that he is also a fool." (Henry Fielding, English writer and judge)

Across the country, tens of thousands of groups run feeding schemes, environmental projects, schools, clinics, and training centres, often built on passion rather than profit.

But while “NGO” is the word most people use, it’s not actually a legal term in South Africa. Entrepreneurs who fund or collaborate with non-profits need to know what each term really means, because it affects compliance, governance, and whether your donation qualifies for a tax deduction.

Alphabet soup: What does it all mean?

What’s the point of registering?

Many groups, particularly small ones, will run perfectly well without registering. Registering does, however, bring a number of real advantages.

It shows funders and partners that the organisation is credible and accountable.
It lets the operators open a business bank account in the organisation’s name.
It qualifies the organisation for funding from government, corporates, and the National Lotteries Commission.
It’s the first step toward tax exemption.

Any entrepreneurs working with or donating to a cause should always ask for proof of registration as an NPO or NPC.

When does “non-profit” mean tax-free?

Here’s where many people get caught out. Just because an organisation is registered as an NPO doesn’t mean they are automatically exempt from tax. To enjoy tax benefits, like exemption from income tax and giving donors section 18A certificates, the organisation must also apply to SARS for Public Benefit Organisation (PBO) status. (Being granted Section 18A status requires a separate approval on top of PBO status.)

That approval comes with conditions: funds must only be used for approved public-benefit activities, and annual returns must be filed. PBO status will always make an organisation more attractive to donors because their contributions can now become tax-deductible and exempt from donations tax.

How do finances and reporting work?

While this might sound like a lot of admin, it protects both sides. Donors get transparency, and the organisation builds a track record for future funding.

Three key questions

Anyone partnering with a non-profit should always review its governance set-up before committing resources and be able to answer the following questions:

Is it registered with DSD or CIPC or both?
Does it have PBO approval from SARS?
Are its financials current and submitted?

If the answer is “yes” to all three, then you are working with an organisation that’s not just doing good – it’s doing good in the right way.

As your accountants, we can ensure that you’re taking advantage of all the tax benefits available to you.

R&R for Better Business Performance? Here’s how…

Fri, 05 Dec 2025 12:07:09 GMT

"Sometimes the most productive thing you can do is relax." (Mark Black)

By prioritising rest and relaxation (R&R) over the holidays, businesses can cultivate a healthier, more productive, and more resilient workforce – which ultimately leads to sustained high performance.

Here’s why R&R matters for your business performance… And how to help your team make the most of their December break.

6 ways R&R boosts business performance

Prevents costly burnout. Chronic stress leads to burnout, which dramatically decreases performance and increases employee turnover. Regular rest maintains sustainable energy and enthusiasm, protecting your investment in talent.
Unlocks creativity and innovation . Downtime allows your subconscious mind to process information and make new connections. Those breakthrough ideas rarely happen amid non-stop meetings and deadlines but rather emerge when your brain has space to wander.
Sharpens decision-making . Fatigue impairs cognitive function. Rested leaders and employees analyse situations more clearly, weigh options more effectively, and make sound strategic decisions that move the business forward.
Increases productivity and focus . Paradoxically, working non-stop decreases productivity. Taking breaks recharges the brain, improving concentration and efficiency. Research shows that the busier people are, the less creative they become.
Enhances problem-solving. Stepping away from a challenge provides fresh perspective. You'll often return with quicker, more effective solutions than if you'd powered through.
Improves team communication. When people are tired or stressed, communication suffers. Rest enhances the ability to listen attentively, express ideas clearly, and avoid conflicts caused by fatigue-driven reactions.

How to maximise your team’s December leave

With the December holidays in a few days, now is the ideal time to encourage your team to make the most of the leave days.

A good starting point is to ensure your team knows that taking leave is essential: some people need permission to step away from their responsibilities.

Also encourage complete disconnection during leave days, reminding your team members that effective rest means genuinely disengaging from work and doing whatever their heart desires, be that hiking the Otter Trail, spending time with the family or embarking on a DIY project.

To reduce anxiety about taking time off and allow everyone to truly switch off when they’re on leave, you need to plan ahead. Work with your team now to establish clear out-of-office dates, handover protocols, and emergency contacts. And ensure projects are covered and clients are informed long before the holidays begin.

Finally, remember to lead by example – when managers and business owners take their own breaks and visibly disconnect, it gives everyone else permission to do the same.

Rest well, start well

Rest is not an indulgence, it’s a strategic investment in your business’ long-term success.

A well-rested team will return sharper, more creative, and ready to tackle challenges with renewed energy in 2026.

Your Tax Deadlines for November 2025

Wed, 05 Nov 2025 07:19:07 GMT

07 November – PAYE submissions and payments
25 November – VAT manual submissions and payments
27 November – Excise duty payments
28 November – VAT electronic submissions and payments, & CIT Provisional Tax payments where applicable.

How Your Payment Terms Could be Damaging Your Business

Wed, 05 Nov 2025 06:50:25 GMT

“Beware of little expenses; a small leak will sink a great ship.” (Benjamin Franklin)

Extending 30-, 60- or 90-day payment terms may seem like a simple trick to help your sales teams convert sales, smooth negotiations and boost customer service. What you may not recognise, though, is that those terms are not neutral commercial niceties – they are a form of credit.

When your business supplies goods or services today and accepts payment weeks or months later, it has effectively provided an unsecured loan to the buyer. That “invisible loan” has measurable costs: higher working-capital needs, lost interest income, distorted pricing decisions and elevated credit risk.

When you sell on extended terms, “accounts receivable” grows and cash on the balance sheet shrinks until the buyer pays. That increases days-sales-outstanding (DSO) and raises the working-capital requirement. If you borrow to cover the gap (common for seasonal businesses or those with tight margins) the interest paid on that borrowing is a direct cost of the terms you offered.

Even when you don’t borrow, the opportunity cost remains: cash not received cannot be used to reduce debt, invest in higher-return projects, or fund inventory when demand spikes. Over time the cumulative burden of routinely extended terms reduces agility and margins.

Unfortunately, many clients demand extended payment terms, and your competition may be prepared to accede to their wishes. So how do you ensure you keep the business without going out of business yourself?

1. Price the finance

Treat longer payment terms as a priced service. Build a transparent financing fee into orders that use 60- or 90-day terms, or publish two price lists: a net price for immediate payment and a financed price for deferred settlement. Customers accept explicit fees more readily than hidden margin increases, and your finance team can model return on capital precisely.

2. Offer structured early-payment incentives

Instead of unconditional long payment terms, offer predictable early-payment discounts or dynamic discounting tied to actual payment date. A 0.5–1.0% discount for payment within 7–10 days often costs less than the buyer’s short-term borrowing and converts receivables into near-cash for you.

3. Underwrite and limit credit formally

Move from ad-hoc allowances to formal credit applications and limits. Require a minimum credit assessment for extended terms, set credit lines tied to payment performance, and review limits at set intervals. For new or higher-risk customers, insist on shorter terms or staged delivery until a track record is established.

4. Design payment terms as part of commercial deals

Make terms a negotiation item linked to value. Trade extended terms for commitments: volume guarantees, longer contract terms, staged milestones, or partial upfront payment. Where applicable, split deals into an upfront deposit and a deferred balance tied to delivery or performance to reduce unsecured exposure.

5. Use technology and supply-chain finance options

Make payment easier with accurate, timely electronic invoicing, one-click payment links, and multiple payment methods. For larger B2B (business-to-business) accounts, consider invoice finance or supply-chain finance platforms. They enable buyers to settle invoices early and suppliers to access cash immediately, typically with transparent and lower financing costs than traditional receivables.

6. Make the invisible visible

It’s essential to stop treating DSO as a passive metric and make extended terms a line item in cash-flow forecasting. Your accountant (that’s us!) can help you report the cost of terms monthly: financing cost, incremental bad-debt risk, and the foregone investment return on delayed cash. We can also supply a short finance note quantifying the cost and proposed mitigation (discount, guarantee, deposit).

The bottom line

Payment terms are a commercial tool and a financial instrument. When finance and sales treat them differently, an invisible loan quietly accumulates. By following the steps outlined in this article you can make the loan visible and manageable. That shift preserves customer flexibility while protecting cash, margins and your company’s capacity to invest.

If you need help structuring your payment terms, speak to us.

Time Is Money: 8 Timesaving Tips Every Business Leader Should Utilise

Wed, 05 Nov 2025 06:44:03 GMT

“The key is not to prioritise what’s on your schedule, but to schedule your priorities.” (Stephen R. Covey, The 7 Habits of Highly Effective People)

In business, it’s too easy for an entrepreneur or business leader to mistake being busy for being effective. Working long hours with back-to-back meetings can look like productivity – but without clarity and boundaries, the important work may not actually be getting done.

According to a study conducted by McKinsey, 61% of senior executives believe that at least half of the time they spend making decisions is unproductive. So how can you stop this from happening to you?

Time-saving strategies are an essential tool for sustainable modern leadership. Streamlining processes, delegating effectively, and embracing automation can transform your day. Done right, these tactics free up energy for strategic thinking, innovation, and decision-making – all of which can lead to greater growth in your business. Here are some evidence-based tips every business leader should employ to better utilise their time.

1. Prioritise ruthlessly

One of the most effective ways to save time is by focusing only on tasks that deliver real impact. The Eisenhower Matrix (dividing tasks into urgent vs. important) remains a powerful tool. Many leaders fall into the trap of handling urgent but low-value work, rather than carving out time for strategic priorities.

The fix? Review your to-do list daily and cut or delegate anything that doesn’t directly move the business forward. Treat your time as an investment portfolio and put more into the high-return opportunities.

2. Delegate with trust

Effective delegation is a skill, not just because it frees up your time, but also because it empowers your team. Too many leaders hoard responsibilities out of habit or fear that standards won’t be met. But this can bottleneck workflows and burn time on details that others are capable of handling.

You should be clearly defining expectations, providing resources, and then stepping back. By learning to fully trust your team you free yourself up for higher-level thinking and decision-making. Just as importantly, you give staff room to grow, in the process increasing employee engagement and retention.

3. The algorithm is your friend

Everyone’s talking about AI these days, and with good reason. Technology can be a business leader’s greatest ally. From scheduling tools to delivering automated reporting, letting technology take care of the smaller tasks can strip hours of repetitive labour from your week.

The upfront effort and cost of setting up automation pays dividends quickly. According to a Deloitte survey, businesses using automation in finance and operations reported time savings of between 60% and 80% in some high volume, transactional finance processes. As your accountant, we can help you adjust budgets to cater for tech upgrades and installations, and the adjusted workflows that will surely follow. Leaders who resist these tools risk drowning in avoidable admin.

4. Guard your calendar

Your calendar is a reflection of your priorities. Yet many leaders allow it to be hijacked by endless meetings. A practical fix is to implement “meeting-free zones” (blocks of time reserved exclusively for deep work).

Another technique is the “two-pizza rule” made famous by Jeff Bezos: never hold a meeting if it requires more than two pizzas to feed the attendees. Meetings with fewer staff and clear agendas reduce wasted time and force clarity.

5. Communicate your way

These days, business leaders are blessed with communication options. Tools like project management platforms, shared documents, and messaging systems mean you can allow communication to happen without the need for meetings or real-time interruptions. Allowing people to react to incoming information when they have space in their day lowers wasted time and increases focus. This helps everyone in the business, including you, to get more done.

6. Build decision-making frameworks

Your job as a business leader is essentially to make decisions. The longer it takes you to make a decision, the more momentum is impeded. Structured decision-making frameworks (such as weighted scoring models) can help you speed up evaluations, reduce second-guessing and come to conclusions faster. This doesn’t just save you time, it also keeps others on track.

7. Invest in personal efficiency

Leadership productivity is also about discipline. By simply changing some of the habits you’ve developed over a lifetime, you could immediately become more efficient. For example, you could answer your emails and phone notifications in batches instead of interrupting work to answer them as the notification comes in.

Introducing new habits and changing old ones will require daily diligence and repetition. Initially, it may seem draining, but over time you’ll find you are saving hours you can put to better use elsewhere.

8. Time as a strategic asset

Leaders who learn to protect and optimise their schedules are the ones who build organisations that are sharper, faster, and more resilient.

By prioritising ruthlessly, delegating effectively, automating smartly, and protecting your calendar, you can transform time from a constraint into a competitive advantage.

Surviving Trust Tax Season 2025 – And Beyond

Wed, 05 Nov 2025 06:30:29 GMT

“Trustees remain accountable for all tax matters of a trust, regardless of the economic activity of the trust.” (SARS)

The official trust filing season for the 2025 year of assessment is now open for both provisional and non-provisional taxpayers – and SARS has issued stern warnings to trustees to fulfil their tax obligations.

Who must file trust tax returns?

A trust is included under the definition of a “person” in terms of the ITA (Income Tax Act no.58 of 1962) and is therefore regarded as a taxpayer.

All South African trusts, including resident and non-resident trusts, that are registered for income tax, must file a tax return annually, even if the trust is not economically active.

A trustee is the representative taxpayer of a trust. Trustees or representatives must register the trust for income tax and file the required tax returns annually. Alternatively, a registered tax practitioner can be appointed as the representative taxpayer.

What must be done?

Taking into account recent changes to the legislation, trustees must submit their returns for the 2025 year of assessment and file the mandatory supporting documents listed further below.

Recent legislative changes

The “flow-through” principle is now limited to resident beneficiaries, so all amounts vested to non-resident beneficiaries are taxable in the hands of the trust. This also affects the submission requirements for provisional tax (IRP6).
Foreign tax credits for taxes paid on income or capital gains earned in a foreign jurisdiction can now be used to prevent double taxation.
From the 2025 tax year onwards, unused foreign tax credits will be carried forward automatically to the subsequent years of assessment, up to a maximum of six years.
The Section 12H Learnership Agreement is extended to 31 March 2027.
The definition of a trust is updated to include collective investment scheme portfolios.
SARS has issued new rules on how losses relating to distributions are limited under section 25B.

Return submissions

The final deadline for the submission of provisional and non-provisional Trust Income Tax Returns (ITR12Ts) is 19 January 2026.

Mandatory supporting documents

Source: SARS

File on time!

Trustees and administrators should take note that all the return submissions and supporting documents are due by 19 January 2026 – just days into the new year.

Submitting within the deadlines is necessary to comply with SARS regulations. Late submissions can lead to administrative penalties, interest charges, and additional steps.

What else must be done?

Because a trust is also a provisional taxpayer, trustees should be aware that a trust is further required to submit provisional tax returns (IRP6) twice a year in August and February.

In addition, trustees are also required to submit an IT3(t) third-party data return that provides details of amounts vested to beneficiaries.

Finally, all income derived from a trust must be declared by any resident beneficiaries of trusts in their own income tax returns.

Looking ahead: Key tax dates for trusts

19 January 2026: Final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.
28 February 2026: Second provisional tax payment for the 2026 assessment year.
31 August 2026: First provisional tax payment for the 2027 assessment year.
September 2026 (date TBC): Opening date for Income Tax Returns for Trusts (ITR12T) submissions for 2026.
30 September 2026: Deadline for IT3(t) return submissions for trusts which declare amounts vested to beneficiaries’ income.
30 September 2026: Top-up provisional tax payment for the 2027 assessment year.

Consequences of non-compliance

SARS takes a zero-tolerance approach to taxpayers who do not register for the applicable tax, file tax returns, declare income accurately, or pay their tax debt.

Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

Surviving Trust Tax Season 2025 and beyond

Never fear! Our team is well experienced in keeping trusts compliant throughout the year. We don’t just contain costs and prevent hassles with the taxman; we also provide peace of mind.

If you need assistance meeting the next trust tax deadline on 19 January 2026, simply reach out to us. It’s the easiest way to survive this trust tax season and those ahead.

Your Year-End Business Checklist: 10 Essential Tasks

Wed, 05 Nov 2025 06:13:35 GMT

“Christmas is a season not only of rejoicing, but of reflection.” (Winston Churchill)

Can you believe November is upon us already? But instead of panicking about Christmas presents, it’s time to get strategic. The end of the year presents a crucial opportunity to settle outstanding matters, measure your business's progress, and establish a strong foundation for a prosperous new year.

This checklist can help you achieve this before December rolls around.

Your 10-step checklist

Back up your data: Back up essential files including accounting documents, client information, and emails. It’s a good idea to keep at least one copy on the cloud and another copy offline on an external hard drive in a secure location.
Stay on top of employee matters: Update all employee information as well as employee access and passwords to software programs and computer systems. Conduct constructive performance appraisals or feedback sessions and share rewards and recognition for notable contributions.
Connect with your customers: Send festive season wishes and details of your holiday operating hours, and invite your customers to give feedback about your company. Add an out-of-office notification on all your communication channels with specific dates as well as an emergency number.
Understand your financial position: Management accounts or reports like the income statement, balance sheet, and cash flow statement provide insight into the expense patterns, profit margins, revenue trends and financial health of your business, enabling informed decisions.
Understand your tax position: Make sure you know your various tax obligations, liabilities and deadlines, and any tax deductions and credits you may qualify for before year-end.
Review marketing and sales efforts: Evaluate which strategies worked, which didn't, and why.
Collect outstanding invoices: Get your December invoices out as early as possible and don't let unpaid invoices carry over into the new year. Follow up on overdue payments now to boost cash flow and start fresh in January.
Verify supplier information: Update your supplier database by confirming contact details, while also evaluating supplier relationships and negotiating better terms.
Take stock: Take a physical inventory of all equipment, supplies and stock to better meet customer demand, identify any discrepancies in your records, prepare tax returns and insurance proposals, and effect necessary repairs, maintenance and upgrades. Set a specific day for the count, organise the space, record quantities, and calculate total value.
Audit your digital presence: Test every link on your website, check your contact forms, review your social media profiles and call your business number to ensure everything works.

Start 2026 off on the right foot

Once you’ve ended the year right, you can start focusing on what’s to come. Use your financial statements, marketing and sales reviews, customer feedback and team input to evaluate progress on last year's goals and to set new ones.

Create a high-level action plan for each goal to guide your progress throughout the coming year. Please contact us if you need any help with this.

Your Tax Deadlines for October 2025

Tue, 07 Oct 2025 09:26:12 GMT

07 October – Monthly Pay-As-You-Earn (PAYE) submissions and payments
20 October – End of Filing Season 2025 for Individual taxpayers
24 October – Value-Added Tax (VAT) manual submissions and payments
30 October – Excise Duty payments
31 October – VAT electronic submissions and payments and CIT Provisional Tax payments.

Management Accounts: A Strategic Tool for Business Success

Tue, 07 Oct 2025 09:24:27 GMT

“Accounting is the language of business.” (Warren Buffett)

Increasingly, banks and other organisations are requiring businesses to submit up-to-date management accounts when applying for finance. This is because these compact financial reports enable business analysis even when the latest annual financial statements are not yet available.

Management accounts also offer owners and managers timely, accurate and actionable financial insights that facilitate performance evaluation, smart management decisions and informed planning – all of which can transform how your business operates and grows.

What are management accounts?

Management accounts are a set of summarised financial reports. They’re similar to annual financial statements but they aren’t as formal, and they’re produced much more frequently – usually monthly or quarterly.

They’re all about providing relevant financial data for informed business decision-making. As such, there’s no fixed format. Instead, management accounts should summarise and combine the financial reports you need to make smarter decisions.

These financial reports might include some or all of the following.

The right set of management accounts can do more than record numbers – it can provide meaningful insights that help your business to perform better, plan ahead, and stay in control.

We can tailor your management accounts

We tailor management accounts to your company’s exact reporting requirements, turning your financial data into actionable insights that can not only improve operational efficiency but also create a solid foundation for sustainable growth in your company.

Think your business could benefit from a management accounts overhaul? Drop us a line!

Adapt or Suffer: How to Keep Your Business Afloat in a Changing Climate

Tue, 07 Oct 2025 09:20:51 GMT

“Taking bold action on climate change simply makes good business sense. It's also the right thing to do for people and the planet.” (Richard Branson)

Climate change impacts the fundamentals of business operations. Rising heat affects productivity, floods and storms damage infrastructure, droughts disrupt supply chains, and new regulations increase compliance costs. Many leaders still believe their sector will be spared, but no industry is truly insulated. Just as one-third of startups fail because they never properly defined their target market, businesses that fail to assess climate risks may find their models undermined by forces beyond their control. The message is clear: failing to future-proof your business, will result in extremely hard times ahead.

Start with the risks you’re facing

The first step is to identify which climate risks could most directly affect your operations. These can be physical (think floods, wildfires, and extreme temperatures), or transitional, such as regulatory changes and shifts in customer expectations.

According to the latest prediction models, South Africans can expect a hotter, more erratic climate with the country warming at about twice the global average. This means more very hot days that will hurt worker productivity and equipment reliability. On top of this, the country is also experiencing heavier downpours with increased flood damage. These damaging floods, such as those seen KwaZulu-Natal in April 2022 and the Western Cape in September 2023, will result in enormous insurance and economic losses and prolonged business disruption.

Despite the flooding, the country is also not in the clear when it comes to water stress. The 2015–2018 Cape Town “Day Zero” drought was devastating for car wash businesses but a boon for borehole drillers. Day Zero may have been avoided, but there will be more droughts in the future.

All of these issues can lead to stock and agriculture failures, infrastructure collapse and process interruptions. A lack of water, for example, creates cleaning and hygiene issues as well as lower staff productivity. Insurers in SA have been reporting increasing weather losses and rising catastrophe claims, which will continue to feed through to higher premiums and excesses and tougher underwriting in high-risk zones.

You can only build a realistic plan once you understand exactly where your exposures lie.

Build a climate profile for your business

Once you understand the risk categories, create a profile detailing how they intersect with your company. You need to consider your location, your sector, your suppliers and your employees. A warehouse on a floodplain carries different risks from a retail store in a heat-stressed city. Manufacturing firms may depend on inputs that are vulnerable to drought or fire, and employees may struggle in adverse weather conditions. Many exposures sit within the supply chain, where a small disruption upstream can ripple through global markets. For example, higher than usual temperatures may result in crops failing, or greater costs for HVAC and cold logistics services. Have you factored in these costs being passed on to your business?

This profile should be updated regularly, as conditions, regulations, and technologies evolve and more is learnt about the severity of future weather patterns.

Segment your strategy

Not every part of your business will need the same response. While operations may require investments in resilient infrastructure or more efficient energy use, supply chains might need diversification or tighter contracts with suppliers to ensure continuity.

Products and services may need to change as customers shift their preferences toward sustainable options. Segmenting your approach enables you to focus on the areas that matter most.

Use data to drive decisions

Climate planning is most effective when it’s based on evidence rather than assumptions. It is vital that any planning you do is based on the data from climate models, insurance assessments, and financial analyses. Tracking information like rising temperatures, energy costs, and new compliance regulations will turn climate risk from an abstract concern into a measurable factor in your strategy. In South Africa, municipal climate plans are being adjusted to redraw floodplain rules and heat-safety requirements. Is your business going to even be compliant when they come in?

Talk to your stakeholders

Your customers, employees, suppliers, and investors are able to offer different perspectives that could keep you ahead of any climate disasters. Customers can tell you what matters most in their purchasing decisions, employees may note practical changes to streamline daily operations and suppliers can share concerns that could highlight problems you had not foreseen. Talking to all of your stakeholders is more important than it’s ever been.

Climate planning is an ongoing process

Preparing for climate change is not something you can set and forget. It requires regular review and adjustment as risks, regulations, and technologies change. Businesses that take structured action now don’t just reduce their exposure – they’ll also become more attractive to capital investment and build long-term resilience.

Climate change is already reshaping the way companies operate. The question is no longer whether it will affect your business but whether you are ready to respond.

Speak to us if you need help allocating budget for climate resilience strategies.

Salary Sacrifice: Why Founders Should Always Pay Themselves

Tue, 07 Oct 2025 09:19:54 GMT

“Paying yourself isn’t selfish, it’s sustainable. The goal is to strike a balance that supports your personal life without compromising the growth of your company.” (Salim Omar, CPA and serial entrepreneur)

Many founders see skipping their own salary as a noble way to fund growth. In reality, underpaying yourself often backfires. Research shows that 82% of small business failures stem from cash flow problems and unpaid founders can mask true costs, distort margins, and create hidden financial pressure – and that’s just the start of it.

What’s the real cost of your time?

When founders refuse to take a salary, they are effectively treating their own time as free. In the scramble to conserve cash, they tell themselves they can wait to be paid until profits improve. But unpaid labour is not free. By not recognising this cost, you skew the economics of your business.

Imagine you hire a manager to take over your duties. Their salary would immediately appear as a line item. By not paying yourself, you are masking a true expense. This can mislead investors, lenders, and even yourself about whether the business model is sustainable and prevent changes that need to be made. Pricing, margins, and growth targets all look healthier than they are, setting you up for shocks later.

This is why savvy investors prefer to see founders compensated fairly. An unpaid or underpaid founder may seem admirable in the short term, but it raises questions about whether they and the company can endure the demands of growth.

Burnout is real

Founders who delay setting a salary usually do so because they are waiting for a day when they feel the business has “earned it.” The problem is that this line keeps moving. There’s always another milestone, another round of investment, or another expense that feels more urgent. Meanwhile the founder is likely eroding personal savings, undermining their career advancement elsewhere and causing stress and sleepless nights in their own home.

A survey by Kruze Consulting of over 200 venture-backed start-ups found that business owners who underpaid themselves for too long often burned out and quit before their companies reached key milestones. By paying yourself out, and minimising the financial risks at home, you can avoid the same fate.

Tax benefits

Not paying yourself a salary isn’t doing the company as many favours as you expect. All expenses put through the company (including salaries) reduce your company’s tax burden, meaning that the benefit you’re providing the company by not taking a salary is significantly smaller than you think.

As a general rule, it’s advised that you take 50% or less of the business’ net profits as compensation and save the rest for reinvestment, but each company is different. As your accountants, we can help you to structure the salary you pay yourself to ensure that the greatest benefit is achieved for all concerned – thereby lessening any guilt you may feel for taking a salary before the business is “ready”.

The effect on morale

One of the more surprising aspects of not paying yourself a salary is the impact it has on staff morale. Salaries are a hot topic in any business, and the founder’s salary is carefully watched by all who work there. Paying too much to the CEO or founder can lead to resentment, with staff feeling that difficulties on the floor are not shared in the board or that the effort at lower levels is not being adequately compensated.

Likewise, founders who take no salary, or a significantly reduced salary, instil distrust and fear among employees who begin to suspect that the company is struggling and likely to go under. This can lead to job-security worries, lower job satisfaction, increases in absenteeism, quiet quitting and higher than normal staff turnover – all of which will impact the business’ bottom line.

Paying yourself is paying your business

Refusing to take a salary may feel like dedication, but over time it will eat away at both you and your company. Underpaying yourself masks the true cost of operations, distorts financial planning models, breaks employee morale and increases the risk of burnout. Setting a realistic salary is not selfish, it is a structural choice that strengthens transparency, stability, and resilience.

Let data guide the choice. Track your revenue, costs, and cash flow. And compare your compensation to industry benchmarks for founders at similar stages.

Businesses survive when their leaders are healthy, focused, and honest about costs. By recognising your worth and paying yourself accordingly, you are not taking from the business, you are ensuring it has a solid foundation on which to grow.

Speak to us if you’d like help with your salary structure.

This Halloween, Stay Safe From eFiling Profile Hijackings

Tue, 07 Oct 2025 08:47:59 GMT

“Profile hijacking points to pervasive cybercrime with global links.” (Edward Kieswetter, SARS Commissioner)

The Tax Ombud has again warned South Africans about the concerning increase in eFiling profile hijackings, which has spurred the Office of the Tax Ombud (OTO) to launch a survey of taxpayers' experiences and a systemic investigation into SARS.

What is eFiling profile hijacking?

eFiling profile hijacking involves cybercriminals gaining unauthorised access to taxpayers' SARS eFiling accounts. Once inside, they change the security details and banking information, and submit fraudulent tax returns to redirect the refunds into their own accounts.

Methods such as SIM swaps and phishing are commonly employed to get access to taxpayers’ eFiling profiles. Using calls and fraudulent SARS text messages, emails and letters of demand, scammers pose as SARS officials or tax advisors, often pretending to want to assist taxpayers to get their SARS refunds.

Concerns have also been raised about possible internal fraud and insider involvement at SARS and certain banks.

SARS systemic investigation

While SARS acknowledges the rise in eFiling profile hijackings, it emphasises that although individual profiles have been compromised, the SARS system itself has not been breached.

SARS adds that additional security measures have been implemented and that it is collaborating with financial institutions and the OTO to combat the scourge of profile hijacking.

How to safeguard your eFiling profile

SARS has issued the following advice:

Avoid sharing your eFiling login details. SARS will never request OTPs, passwords or bank details via calls, emails or text messages.
Use strong and unique passwords and update them regularly.
Enable two-factor authentication for an additional layer of security.
Regularly check your eFiling profile and submitted returns for any unauthorised changes.
Verify your bank account on eFiling before a refund is paid, even if there was no change to the banking details.
If you suspect your profile has been hijacked, change your login credentials promptly using another device, and report it immediately to SARS and to the SAPS as an identity theft case.

Rely on the expertise of a SARS registered tax practitioner such as ourselves.

How we help keep your eFiling profile safe

As your accounting and tax partner, we help you keep your eFiling profile safe by, for example, keeping abreast of all the latest scams, validating the status of your tax affairs and any SARS enquiries or requests, and by using only official channels for interacting with SARS, especially when making payments.

If you are concerned about the security of your SARS eFiling profile, or if you have been contacted by anyone offering assistance to obtain a SARS refund, contact us immediately.

We are the ally you need in the fight against profile hijacking.

Top Complaints Against SARS – And How We Help You Avoid Them

Mon, 08 Sep 2025 13:55:51 GMT

“He said that there was death and taxes, and taxes were worse, because at least death didn’t happen to you every year.” (Terry Pratchett)

In SARS jargon, a ‘systemic issue’ is the underlying cause of a complaint that affects many taxpayers. These systemic issues may have to do with the way SARS systems function, how SARS drafts and implements policies or procedures, or even how it applies or disregards legislative provisions.

Over the years, collaboration between the Office of the Tax Ombud (OTO) and SARS has reduced the number of systemic issues from more than 20 to seven.

7 systemic issues at SARS

Delays in payment of refunds.
Non-adherence to dispute resolution timeframes and rules under the Tax Administration Act (TAA).
Undue hardship caused to taxpayers resulting from the way the Tax Compliance System (TCS) is designed.
Failure to respond to requests for deferred payment arrangements within the prescribed turnaround time (21 days).
Failure to respond to requests for a compromise within the prescribed turnaround time (90 days).
Failure to respond to requests for a suspension of payment within the prescribed turnaround time (30 business days).
Repeat verification for reduced assessments or for cases with the same risk and supporting documentation.

How do systemic issues affect my business?

Delayed refunds – especially VAT and diesel refunds – create massive cash flow challenges for companies, inhibiting growth and increasing the risk of business failure, especially for small businesses.

Similarly, the design of SARS’ Tax Compliance System has resulted in companies losing contracts or tenders, or not being paid by corporate or government clients. This is because the system may flag a company as non-compliant where payment arrangements or suspension of debt agreements are in place. The system also reflects non-compliance for immaterial transgressions – including, for example, minimal debt amounts such as R1 and outstanding returns or payments for which arrangements have been made with SARS; or even fraud committed by SARS or ex-SARS officials.

SARS’ non-adherence to dispute resolution timeframes and rules, and its delayed response to requests for payment arrangements, not only infringe on taxpayer’s rights, but also expose taxpayers to prolonged periods of ‘non-compliance’, despite their efforts to become compliant.

Repeat verification cases cost time and money, adding a further unnecessary compliance burden on taxpayers.

How we protect your interests

While these systemic issues are being addressed by SARS, and monitored by the Tax Ombud, SARS suggests that taxpayers rely on the expertise of a registered tax practitioner. As your SARS-registered tax practitioner, we protect your interests and rights as a taxpayer in the following ways:

Careful compliance and excellent record-keeping are always the first line of defence when dealing with SARS – we help ensure that you have the correct processes in place to ensure both.
Our team of tax experts can professionally and correctly represent your business in the event of a tax dispute with SARS.
We understand the service levels and time frames outlined in the TAA and SARS’ Service Charter and we are experienced in using the official channels for complaints, including SARS’ Complaint Management Office.
We easily recognise systemic issues and can help you escalate these challenges directly to the Tax Ombud – the quickest and most effective way to deal with most complaints relating to systemic issues.
For other issues, after all avenues of recourse within SARS have been exhausted, we can assist your business to access the free and independent recourse offered by the OTO.
We can advise your business on obtaining tax risk insurance protection against SARS tax audits and related disputes.

You can count on us to ensure your dealings with SARS are as efficient and cost-effective as possible!

What's the Difference Between a Bookkeeper and an Accountant?

Mon, 08 Sep 2025 13:54:20 GMT

“Finance is effectively the rhythm section of a company. It creates the company cadence that every company needs.” (John Baule, CPA and ecommerce expert)

You can’t grow a business without a clear handle on your numbers. But too many business owners still confuse bookkeeping and accounting. These roles do have some overlap, but they serve different purposes. Assigning tasks to the correct person means better insights, sharper decisions, and a clearer path to growth.

In a nutshell

A bookkeeper keeps your financial records accurate and current. They handle the day-to-day recording of transactions, issuing of invoices, reconciling of bank statements, and making sure everything lines up. Think of it as the hygiene of your business finances. If it’s not being done regularly, problems start to build up fast. Bookkeeping doesn’t involve complex analysis or forecasting – but without it, the numbers your accountant sees will likely be wrong, or missing entirely.

An accountant works further up the chain. Using the data that bookkeepers maintain, they prepare financial statements, analyse performance, give tax advice, and help shape business strategy. A good accountant doesn’t just analyse tax obligations, they help you understand your business and shape strategy for the future. That could mean spotting ways to reduce your tax bill, warning you about cash flow risks, or helping you build the case for a bank loan or investment round.

Why does this distinction matter?

With margins so tight nowadays, many people are asking their bookkeeper to perform both roles. This may seem to make sense, but it’s like asking your mechanic to design your next car. When the work gets confused, important details fall through the cracks – and that confusion grows as your business does.

When they’re starting out, many smaller businesses get by with only a bookkeeper. At that stage, the financial picture is usually simple: a few suppliers, a few clients, not too many moving parts. But as the numbers grow, so does the complexity. You start needing help with budgeting, forecasting, asset management, and tax structuring. That’s when your business begins to need financial insight.

Hiring an accountant doesn’t mean replacing your bookkeeper. It means building a team where each role is clear, and the right questions get asked at the right time. To do that, businesses need to stop seeing the bookkeeper as a junior accountant, or the accountant as an expensive version of a data clerk.

Bound by the law

There’s also a regulatory edge. Bookkeepers aren’t usually qualified to give tax advice or submit signed-off financials. If they do, and it’s wrong, you can be held liable.

Accountants, on the other hand, carry the qualifications, experience, registrations and liability cover to advise on matters that can make or break your year-end. Getting that wrong can mean more than just fines and tax penalties, it can lead to missed deductions, misreported income, or worse.

So, how do you decide who you need?

Start by asking what you’re struggling with. If you’re drowning in paperwork, if supplier payments and invoices are slipping through the cracks, or if your reports don’t match your bank balance, that’s a bookkeeping issue. But if you don’t know how much tax you’ll owe in six months, if you’re unsure whether you can afford to hire, or if the bank asks for documents you can’t produce, you’re in need of an accountant.

It’s also worth looking at timing. Bookkeeping is a weekly or even daily discipline. Accounting is more periodic – think monthly reports, quarterly planning, and annual tax returns. Many accounting firms offer bookkeeping as an add on service, but you should not allow this to blur the lines between the two roles. A well-run business usually benefits from both.

Finally, don’t fall for the idea that either role is a luxury. Clean books keep you out of trouble. Smart accounting helps you make the most of what you have. Together, they turn your financials from a source of stress into a foundation for growth.

Still unsure? Give us a ring – we understand the difference between an accountant and a bookkeeper intimately.

Wills Month 2025: How to Have the Last Word

Mon, 08 Sep 2025 13:52:37 GMT

“Life is short, there is no time to leave important words unsaid." (Paulo Coelho, Author)

Having “the last word” is defined as having “the final decision-making power or authority in a matter.”

South Africans have the right to have the last word about how their assets are disposed after their passing – but exercising this right requires a well-drawn and up-to-date will … a job that is best left to the professionals.

Sadly, estimates suggest that as many as 70% of South Africans do not have a will. This means that someone else – perhaps, even, a total stranger – will get the last word on important decisions that significantly impact those who are left behind.

If you die without leaving a valid will…

Unhappiness and conflict among family members are common when there are no clear instructions on how to distribute your assets.
Your belongings and assets will instead be distributed according to our laws of intestate succession. This means that you have lost your opportunity to decide who will inherit what from you. For example, your spouse may inherit a lot less than you wanted them to.
The Master of the High Court will appoint an executor without knowing your wishes in this regard. This takes a long time, may involve extra and unnecessary costs, and possibly leaves your family to deal with a stranger who has no insight into your family situation or your wishes. This only adds to your family’s burden in the aftermath of your death.
If you have minor children, the assets you leave behind will be sold and the proceeds will be held by the Guardian’s Fund until they are 18. Not only are there concerns over the Fund’s resilience to cyber threats and general administration, but its generic investment strategy is unlikely to achieve anything more than minimal capital growth. Your children’s guardians will also have to justify withdrawal requests to fund expenses (living, educational, medical etc.) – a slow and bureaucratic process.

How to draw up a will?

While it is legally possible to draft your own will, we strongly urge you to consult us when preparing this vitally important document. Drafting your own will is fraught with danger. Not only may it be invalid, but it might result in your last wishes not being fully honoured. What’s more, there’s a strong chance of it risking estate planning and tax inefficiency.

We can provide reliable advice regarding problems which may arise regarding your will. And we have the necessary knowledge and expertise to ensure that your will is valid and complies with your wishes.

Got any questions about estate planning? Ask us!

The Emotion-Based Money Decisions That Could Be Costing Your Business

Mon, 08 Sep 2025 13:50:47 GMT

“Financial planning causes a struggle between the rational brain and the emotional brain.” (Michael C. Finke, author of Money Management Skills)

You didn’t start your business to become a psychologist. But understanding the way emotions creep into your decisions could be the difference between plain sailing and struggling to stay afloat.

Entrepreneurs are often painted as rational, profit-driven operators. In reality, money decisions are rarely made in a vacuum. Stress, fear, pride and even guilt, can all shape your thinking. The danger is, emotional decision-making doesn’t feel emotional. It feels instinctive, even responsible. But it can erode cash flow, distort pricing, or block growth, while giving you the false sense that you’re doing the right thing.

The goal isn’t to ignore emotion. It’s to recognise where it’s hiding, so it doesn’t quietly sabotage your progress.

“We set prices by gut feeling”

Pricing should be based on data, not personal sentiment. In reality, neither owners nor customers inherently “know” what a fair price is. Research on psychological pricing shows that people usually assess value by comparison, not by intuition.

When owners set prices based on how they feel instead of cost and market demand, they often undercharge. In short, emotional pricing leaves money on the table. The fix is to base prices on costs, competition, and demonstrated customer value instead of just a hunch.

“Raising prices will make customers revolt”

Price increases make many owners nervous, but fear is often worse than reality. A report from the U.S. Small Business Development Centre found that, when questioned, owners commonly say “I’m afraid I will lose customers if prices go up.”

In practice, customer loyalty depends on quality and service, not just on getting the lowest price. Studies note that some customers might switch if you raise prices – but most (or all) will stick around if value remains high. In fact, a modest price hike often increases profit more than it costs in lost sales. Raising prices at the right time (e.g. after adding value or amid industry-wide inflation) is usually safe and can strengthen a business.

“Our sales will meet this forecast”

Owners tend to be optimistic about sales, but wishful thinking skews forecasts. Sales teams frequently rely on “gut” when updating projections, which breeds overconfidence. In other words, they estimate sales based on hope rather than hard signals. Behavioural finance experts call overconfidence bias “one of the most common issues in financial decision-making”.

The result is frequent forecasting errors: too much inventory, staffing overruns, or cash shortfalls when sales fall short. To counter this, successful owners use data and regular feedback loops. They treat projections as hypotheses to test, not guaranteed outcomes.

“I can do the books myself”

Many business owners feel they must handle all finances alone, but that can backfire. It’s common to believe nobody knows your business “as well as you do,” and thus avoid outside help. This reluctance to delegate leaves owners overworked and stressed. Bringing in an accountant frees up time and adds expertise. Trusting trained professionals with your money management usually strengthens control (and sanity), rather than eroding it.

“We’ll fix financial problems later”

Procrastinating on tough money decisions is a costly mistake. Delaying the reality-checks, like overdue invoices, unpaid taxes, or necessary budget cuts, may feel easier now, but hurts later. Studies of business strategy show that postponing financial actions leads to “immediate cash flow constraints” and lost growth opportunities. For instance, skipping a pricing review or ignoring rising expenses might result in steep interest charges or a cash crunch.

In short, avoiding unpleasant choices compounds risk. The smarter move is to tackle issues early: tighten budgets, renegotiate costs, or adjust plans when there’s still time to gain an advantage.

What’s the takeaway?

Businesses can often counter these emotional pitfalls by simply bringing data and perspective into their decisions. We highly recommend seeking outside input and using structured decision frameworks to ensure actions are taken based on clear reports and forecasts.

Don’t be afraid to doubt yourself. Questioning each emotional assumption and verifying it with facts is the surest way to protect your margins and future growth.

Tax Deadlines You Need to Know for August 2025

Wed, 03 Sep 2025 06:00:00 GMT

Managing your tax obligations on time is crucial to keeping your business compliant and penalty-free. With several important deadlines falling in August, planning ahead will help ensure smooth submissions and payments.

Why August 2025 Tax Deadlines Matter

Late submissions or missed payments can attract interest, penalties, or even trigger audits. Staying on top of each tax date protects your business cash flow and ensures you remain in good standing with SARS. August is particularly busy, with multiple deadlines for PAYE, VAT, excise duty, and provisional tax.

07 August – PAYE Submissions and Payments

Employers must submit and pay Pay-As-You-Earn (PAYE) tax by this date. PAYE ensures employees’ income tax is collected and paid over to SARS monthly. Delays here can lead to stiff penalties and interest charges.

25 August – VAT Manual Submissions

VAT vendors using manual submissions must file and pay VAT by this date. Whether your business collects VAT on sales or claims input VAT on expenses, accurate reporting is essential to avoid errors that could raise red flags with SARS.

28 August – Excise Duty Payments

Excise duty applies to specific goods like alcohol, tobacco, and fuel. Businesses in these industries must make their payments on time. Excise duty compliance is closely monitored, and missed deadlines can quickly accumulate penalties.

29 August – VAT Electronic and Provisional Tax

The month ends with several major deadlines. VAT vendors who file electronically must submit and pay by 29 August. This date also applies to Corporate Income Tax provisional payments and Personal Income Tax provisional payments where applicable. These provisional tax payments are critical for businesses and individuals with irregular or variable income.

August is a heavy month for tax compliance. From PAYE at the start of the month to VAT and provisional tax at the end, missing a deadline could cost your business dearly. Mark these dates in your calendar and work with your accountant to ensure submissions are accurate, on time, and stress-free.

CIPC Guidelines: Why Director Duties Are a Serious Matter

Mon, 01 Sep 2025 05:00:28 GMT

The CIPC has made it clear that directors must take their responsibilities seriously. Its first guideline for 2025 was issued to remind directors of the consequences of failing to comply with their duties under the Companies Act.

CIPC and the Duties of Company Directors

Directors must act in good faith, for proper purpose, and always in the best interest of the company. They are expected to exercise care, skill and diligence while avoiding conflicts of interest. Sections 75 to 215 of the Companies Act outline critical responsibilities, covering conduct, liability, insurance, false statements and reckless behaviour. The CIPC stresses that understanding these duties is essential for sound governance.

Recent Amendments Increase Accountability

Amendments to the Companies Act have raised the bar for directors. Stricter fiduciary duties, greater transparency in appointments, and new disqualification criteria mean directors face higher levels of scrutiny. The CIPC has aligned these changes with global governance standards, ensuring that accountability remains front and centre.

Civil Liability for Non-Compliance

Directors may be held personally liable for losses caused by reckless trading, unauthorised actions, misleading financial statements or fraudulent conduct. Courts have already declared directors delinquent in high-profile cases, with bans imposed and compensation ordered. The CIPC highlights these rulings as warnings for all company leaders.

Criminal Liability Adds Further Risk

Breaches of confidentiality, falsification of records, reckless trading and providing false information can lead to fines or imprisonment of up to 10 years. The CIPC reinforces that these penalties are not theoretical-they are actively enforced when misconduct occurs.

Insurance Won’t Always Protect You

Directors and Officers Liability insurance has strict exclusions, including dishonesty, fraud and wilful misconduct. The CIPC warns that reliance on insurance without understanding indemnification rules under Section 78 of the Act can leave directors dangerously exposed.

Revenue Growth Through Smarter Networking Habits

Fri, 29 Aug 2025 06:00:10 GMT

Networking isn’t just about swapping business cards. Done with intention, it can become one of the strongest drivers of revenue in any business. Entrepreneurs who treat networking as a strategy, not a side activity, often unlock opportunities that lead directly to growth.

How Networking Events Can Unlock Revenue Potential

Many people walk away from networking events feeling disappointed. The reason? Passive participation. Simply showing up isn’t enough. To turn conversations into revenue, you need to set clear goals, engage with intent, and follow up. A thoughtful message after the event can transform casual chats into profitable business relationships.

Time Constraints Don’t Have to Limit Growth

“I don’t have time to network” is a common excuse, but networking doesn’t require hours every week. Even one or two meaningful conversations can build valuable bridges. Think of networking as business development-investing just 30 minutes weekly can gradually compound into measurable revenue gains.

No Industry Is Exempt from Connections

From logistics to retail, industries thrive on trust. Revenue often flows through introductions and referrals, regardless of how technical or formal your field may seem. Word-of-mouth is universal, and the right connection can open doors that cold calls or advertising never could.

Activate and Refresh Your Existing Network

Having a contact list is not the same as leveraging it. Revenue opportunities appear when your network remembers you, and that requires consistent engagement. Share insights, introduce people, and stay visible. Relationships that aren’t maintained eventually fade, along with the opportunities they could bring.

Authenticity Is the Key to Long-Term Gains

Networking doesn’t mean performing or pitching at every turn. The strongest connections are built through listening, asking questions, and being genuinely useful. Authentic interactions create trust-and trust is what drives sustainable revenue.

Smarter networking doesn’t require a total reinvention of how you work. By focusing on intent, consistency, and authenticity, you can transform connections into tangible revenue. It’s not about being everywhere; it’s about being valuable where it counts.

Crypto Crackdown: SARS’ Dedicated Unit Targets Traders

Wed, 27 Aug 2025 06:00:04 GMT

South Africa has one of the highest adoption rates of Bitcoin and other digital currencies in the world, with millions of citizens holding some form of crypto asset. SARS has taken notice, and the establishment of a specialised Crypto Asset Unit shows just how serious the revenue authority is about regulating and taxing these transactions.

How Crypto Assets Are Taxed in South Africa

Although crypto is not considered legal tender, transactions and speculation fall under normal tax law. Gains or losses from crypto trades must be declared in the year they accrue. Depending on the nature of the transaction, profits can be treated as income under “gross income” or as capital gains subject to CGT. Expenses directly linked to crypto activities may also be deductible if they are incurred in the production of income.

Scenarios That Create Tax Obligations

There are three main ways crypto activity creates tax consequences: mining, trading through exchanges or private deals, and using crypto for goods or services. Each of these is treated differently by SARS, but all carry a reporting obligation. The onus is on taxpayers to declare income and gains, regardless of whether transactions take place locally or globally.

Stricter Enforcement with New Crypto Tools

SARS has invested heavily in advanced analytics, machine learning, and data-sharing with exchanges to track crypto transactions. By forming global partnerships, SARS now receives detailed trading data across borders, leaving little room for non-compliance.

What Non-Compliance Could Cost You

Failing to declare crypto income can lead to audits, investigations, and penalties as high as 200%, plus interest. Legal action is also a possibility. Taxpayers caught out after SARS initiates enforcement cannot apply for the Voluntary Disclosure Programme (VDP).

How to Stay Protected

The safest step is to engage with professional accounting and tax experts. Specialists can help assess past liabilities, declare crypto transactions correctly, and guide you through voluntary disclosure if needed. With SARS watching more closely than ever, compliance isn’t optional-it’s essential.

Accounting Myths That Could Be Burying Your Business

Mon, 25 Aug 2025 06:05:35 GMT

Running a business is more than chasing profits. While many entrepreneurs keep a close eye on expenses and bank balances, false ideas about Accounting creep in and distort the bigger picture. These myths sound like common sense, but they can quietly damage growth, cash flow, and decision-making.

Depreciation Is More Than a Paper Loss

It’s tempting to dismiss depreciation as a non-cash expense, but it reflects the real decline in value of your assets. Ignoring it can leave you overestimating margins and making risky choices, like cutting prices or expanding before you’re ready.

Profit Doesn’t Equal Cash

On paper, your business might look profitable, yet cash in the bank tells another story. Late payments, slow-moving stock, and loan repayments can drain liquidity. Without careful cash flow management, a “profitable” business can collapse.

Bank Balance Doesn’t Mean Stability

A full account today doesn’t guarantee smooth sailing tomorrow. Taxes, supplier invoices, and payroll may already be waiting to drain that number. A cash flow forecast provides the forward view your bank app can’t.

Tax Planning Isn’t Just for Year-End

Leaving tax considerations to the end of the year limits your options. Smart Accounting treats tax as an ongoing process, shaped by everyday decisions from salaries to asset purchases.

Accountants Offer Strategy, Not Just Compliance

Accountants aren’t just there to file returns. They help you uncover hidden costs, monitor sustainable margins, and understand break-even points-insights that are vital for growth.

Growth Needs Management, Not Just Sales

Bigger orders and faster turnover can choke cash flow if expenses, staff, and stock spiral. The key question isn’t just “Can we grow?” but “Can we grow profitably?”

Accounting is not about ticking boxes. It’s about clarity. By busting these myths and working with an accountant throughout the year, you gain sharper numbers, smarter insights, and the confidence to grow sustainably.

Tax Returns: A Guide to the 2025 Tax Season

Tue, 01 Jul 2025 12:51:53 GMT

Tax returns are a vital part of our financial obligations as citizens. Every year, taxpayers are required to submit their tax returns to the South African Revenue Service ( SARS ) to ensure they are in compliance with tax laws. The upcoming 2025 tax season introduces several key updates that will impact both individuals and provisional taxpayers. In this guide, we will explore the important dates, changes, and what to expect from the filing process.

Key Dates for the 2025 Tax Season

The 2025 Filing Season for personal income tax opens on 7 July 2025. SARS has set the following dates for different taxpayer groups:

Auto Assessment Notices: 7 July 2025 to 20 July 2025
Individual Taxpayers: 21 July 2025 to 20 October 2025
Provisional Taxpayers: 21 July 2025 to 19 January 2026
Trusts: 19 September 2025 to 19 January 2026

It is crucial for taxpayers to be aware of these dates to ensure they submit their tax returns on time and avoid potential penalties.

Updates to the Tax Return Process

Changes to the ITR12 Tax Return

The ITR12 tax return form has been updated for the 2025 tax season. Key updates include:

Provisional Taxpayer Changes : From 1 March 2025, labour brokers who receive an approved certificate of exemption will be considered provisional taxpayers. This means they must comply with provisional taxpayer requirements, including submitting IRP6 tax returns.
New Source Codes for Backdated Salaries and Pensions : For backdated (antedated) salaries and pensions, new source codes (3623 and 3673) have been introduced in the ITR12 tax return form.

Interest Exemption and Trust Income Changes : Changes to tax residency, trust income reporting, and section 10(1)(i) interest exemption will also impact your filing for 2025.

Filing Your Tax Return

It is essential for taxpayers to understand the updates to the ITR12 form and how they might affect the submission of their tax returns. Whether you are an individual taxpayer, provisional taxpayer, or trustee, ensure that your return is accurate, up-to-date, and submitted before the deadline.

SARS offers various tools to help taxpayers navigate the tax return process. With these tools, filing a tax return has become easier than ever. However, taxpayers should be diligent in ensuring all information is correct to avoid delays or complications.

The 2025 tax season brings several new updates to tax return procedures, including changes to provisional taxpayer requirements, new source codes, and adjustments for foreign tax credits. These changes are designed to streamline the process and offer greater flexibility for taxpayers.

Remember, meeting the filing deadlines is crucial. Ensure that you keep track of important dates and review any changes that may apply to your situation. By staying informed, you can avoid penalties and ensure that your tax returns are filed smoothly.

For more information or assistance with your tax return, contact Core Accountants and Tax today!

Tax Deadlines for June 2025: Stay Ahead of Your Obligations

Tue, 01 Jul 2025 07:57:06 GMT

As businesses and individuals prepare for tax season, keeping track of important deadlines is crucial. Meeting these deadlines helps you avoid penalties and stay compliant with the South African Revenue Service (SARS). In this article, we’ll go over the key tax deadlines for June 2025, so you can ensure everything is filed and paid on time.

PAYE Submissions and Payments: 6 June 2025

The first critical deadline in June is the submission and payment of Pay-As-You-Earn (PAYE) tax. Employers are required to submit their PAYE returns and make the necessary payments by 6 June. PAYE is essential for deducting tax from employees’ wages, and missing this deadline can result in hefty fines and penalties.

Make sure to file on time to avoid unnecessary complications and keep your business operations smooth .

VAT Manual Submissions and Payments: 25 June 2025

VAT (Value Added Tax) is another critical obligation that must be fulfilled by 25 June. If your business still handles VAT manually, be sure to submit your returns and make the necessary payments on this day. This deadline ensures that businesses comply with VAT regulations, which are essential for maintaining the proper flow of goods and services within the economy.

Failure to meet this deadline can result in delayed payments and interest penalties, so it’s important to get this in before the cut-off.

Excise Duty Payments: 27 June 2025

For businesses dealing with products like alcohol, tobacco, and certain other goods, excise duties apply. The payment for excise duties is due on 27 June. Be sure to complete your payments for excise duties on time to avoid disruptions in the supply chain. Excise duties are critical to the revenue collection of SARS and a fundamental part of fiscal policy, so it’s important not to overlook this date.

VAT Electronic Submissions and Payments & CIT Provisional Tax: 30 June 2025

The last deadline of the month is for VAT electronic submissions and payments, along with Provisional Tax payments for Corporate Income Tax (CIT), which is due by 30 June. This is a significant deadline for both small businesses and larger enterprises. Ensure all your VAT returns are filed electronically, and if applicable, make your Provisional Tax payments for CIT on time to avoid penalties.

Corporate taxpayers must ensure that their financial calculations are up to date and that any outstanding payments are made promptly.

Don’t Miss Your Tax Deadlines

Tax deadlines can seem overwhelming, but with the right planning and attention to detail, you can ensure that your business stays on track. Be sure to mark these dates in your calendar and take the necessary steps to submit your payments and forms on time. By doing so, you can avoid unnecessary fines, interest, and legal issues down the line.

VAT Increase in 2025: What It Means for South Africans

Tue, 01 Jul 2025 07:57:04 GMT

As South Africa grapples with rising debt levels and budgetary pressure, the National Treasury is considering a possible VAT Increase in 2025 to generate additional revenue. But what does this mean for everyday citizens and small business owners?

Why Is a VAT Increase Being Proposed?

The idea of a VAT Increase stems from government efforts to stabilise public finances. According to DotNews , increasing VAT by 1% could raise over R24 billion annually. This revenue could be used to fund social grants, healthcare, and infrastructure. However, the proposal remains controversial due to its potential to hit low-income households hardest.

Economic Pressure on Households

A VAT hike would make everyday items more expensive, especially those not zero-rated like toiletries, cleaning products, and prepared food. Consumers already facing rising fuel and electricity prices may find their budgets stretched even thinner. Analysts warn that this indirect tax could worsen inequality if not accompanied by targeted relief measures.

Possible Government Offsets

To counterbalance the effects of a VAT Increase , the Treasury may expand the list of zero-rated goods or increase social grants. Measures like these were introduced in 2018 during the previous VAT hike, but the effectiveness of such offsets is still debated.

Business Implications

For businesses, especially SMEs, a VAT hike brings administrative changes and pricing challenges. Updating POS systems, renegotiating contracts, and educating customers will be critical. Forward planning and cash flow management will help absorb the shock without losing competitiveness.

What Happens Next?

The final decision on whether a VAT Increase will be implemented lies with the Minister of Finance , likely to be announced during the upcoming Budget Speech. Until then, South Africans are advised to stay informed and prepare for possible changes.

ETI: How Your Business Can Benefit from Youth Employment

Wed, 25 Jun 2025 11:42:19 GMT

South African businesses face the dual challenge of remaining cost-efficient while also investing in future-ready talent. The Employment Tax Incentive ( ETI ) offers a smart solution, encouraging companies to hire young workers while gaining significant tax relief.

What Is the ETI and Why Should It Matter to You?

The ETI is a government-backed tax incentive designed to help employers hire South Africans between 18 and 29 years old by subsidising a portion of their wages through PAYE reductions. It’s not only a cost-saving strategy, it’s a powerful way to address youth unemployment and inject fresh energy into your workforce.

Young Talent Is a Growth Asset for Businesses

Hiring young people means hiring adaptability, digital fluency, and untapped potential. Today’s youth are fast learners, naturally tech-savvy, and eager to grow. When nurtured, they can drive innovation, support digital transformation, and energise your team culture.

How the ETI Helps Improve Your Cash Flow

Employers claim the ETI by reducing their monthly PAYE liability, improving liquidity without changing employee wages. Businesses can apply this incentive for up to 24 months per qualifying employee, with no cap on the number of employees claimed for.

Avoid the Common Pitfalls of ETI Implementation

Mistakes in ETI claims often stem from poor record-keeping, incorrect remuneration definitions, or failing to meet the qualifying criteria. Working with experienced accountants can prevent compliance issues and help you maximise the benefits responsibly.

Partnering with Experts to Optimise ETI Claims

Professional tax advisors ensure that your ETI submissions are accurate and aligned with current regulations. They can guide you through audits and reporting while helping you stay focused on growth, not paperwork.

Master Your Business Finances with Future-Ready Strategies

Wed, 25 Jun 2025 09:07:43 GMT

In today's unpredictable economic climate, managing Business Finances is no longer just about balancing the books. It's about ensuring long-term sustainability, embracing innovation, and positioning your business for scalable success. Whether you're running a startup or managing an established enterprise, financial clarity is the foundation of every strategic decision.

Why Business Finances Deserve Daily Attention

Too many business owners only assess their finances when cash flow becomes a concern. However, consistent financial oversight enables better forecasting, improved supplier negotiations, and sharper decision-making. With proper budgeting and monitoring, you can pre-empt problems before they disrupt operations or growth.

Embrace Technology to Streamline Business Finances

Modern financial management tools can automate expense tracking, generate real-time profit and loss reports, and simplify tax preparation. Cloud accounting software like Xero or Sage empowers businesses to stay agile, offering both a bird’s-eye view and granular control of their Business Finances . Automation reduces manual errors and frees up time to focus on scaling.

Budgeting Is Not Boring, It’s Your Competitive Edge

A well-structured budget helps allocate resources effectively. By setting realistic financial targets and regularly comparing them against actual results, you can identify inefficiencies, cut unnecessary costs, and redirect funds into high-yield areas like marketing or product development.

Diversify Income Streams Without Compromising Focus

Single-revenue models can be fragile. Look for strategic diversification that complements your current offerings. For example, service-based businesses might introduce digital products, while retailers could explore subscription models. Just ensure each new stream supports, rather than distracts from, your core.

Build a Financial Safety Net for Market Volatility

Reserves are essential. A buffer of three to six months' worth of operating expenses can protect your business against sudden downturns, late payments , or economic shifts. Having this cushion allows you to take calculated risks without jeopardising stability.

Make Business Finances Part of Your Strategy

Financial health isn't a background task. It's a pillar of strategy. Review your Business Finances monthly, work with an advisor when needed, and treat financial literacy as a critical leadership skill. The future belongs to businesses that are not only profitable but financially prepared.

5 Ways to Support Employees Facing Personal Crisis at Work

Fri, 13 Jun 2025 09:47:37 GMT

Compassionate leadership during hard times builds lasting loyalty.

When a personal crisis strikes, your employees don’t leave their problems at the office door. As a leader, how you respond to these difficult moments says more about your company culture than any mission statement ever could.

Supporting your team through crisis is not only the right thing to do, it’s also smart business. A Gallup study found only 23% of South African employees are actively engaged at work. How you treat people during hardship plays a massive role in whether they become more engaged or completely disengaged. Here are five ways to support your employees through a crisis, with care, clarity, and strategic foresight.

1. Listen without rushing to fix

Your first responsibility is to listen, without judgement, assumptions or immediate solutions. Create a psychologically safe space for employees to speak openly. The goal isn’t to fix their problems, but to understand their needs.

2. Offer personalised support

Support should never feel generic. One employee may need leave; another might find comfort in flexible scheduling. Tailor your approach to the individual and consult HR or professional advisers where needed.

3. Prioritise privacy

While you may need to adjust responsibilities, avoid office gossip or speculation. Set up private communication channels, share information only on a need-to-know basis, and always get the employee’s consent before disclosing anything.

4. Don’t forget the wider team

Managers and coworkers are often indirectly affected. Equip them with training in crisis management, mental health first aid, and empathetic communication to prevent burnout and missteps.

5. Budget for empathy

Yes, empathy costs money, extra leave, counselling, workload redistribution, but it’s a smart investment. Your accountant can help you rework your budget to allow for real, human-centred leadership.

Your crisis response is your company’s character in action. Whether you’re a start-up or a corporation, leading with empathy builds trust and transforms difficulty into opportunity.

Need help finding room in your budget to support your team?
Contact us today and let’s help you create a workplace that cares, without compromising your bottom line.

Tax Filing 2025: Everything You Need to Know

Thu, 05 Jun 2025 14:40:12 GMT

Important Dates and How to Prepare for Tax Filing

The 2025 Tax Filing season officially opens on 7 July and runs until 20 October , as confirmed by SARS. For millions of South Africans, this period is a critical opportunity to review financials, declare income, and ensure tax compliance. Whether you're an individual taxpayer, a small business owner, or managing someone else's return, being prepared is essential.

Key Changes and Filing Methods

As with previous years, SARS is encouraging the use of eFiling and the SARS MobiApp for faster, more efficient submissions. Automatic assessments will be issued to a segment of taxpayers, and if you receive one, you may not need to file unless your circumstances have changed.

If you do need to submit manually or via assisted digital channels, ensure that your supporting documents are up to date. These include IRP5s, proof of deductions, medical aid certificates, and investment income statements. Missing any of these can delay the process or result in penalties.

To make the most of the Tax Filing season:

Start early: Don’t wait until the last week to gather documents or ask your employer for tax certificates.
Review last year’s submission to spot any recurring deductions you might miss.
Use the SARS online calculator to estimate your return ahead of time.

In short, the 2025 Tax Filing window offers an excellent chance to keep your financial record in order and possibly even secure a refund. Stay compliant, stay informed, and file with confidence.

Tax Avoidance vs Tax Evasion: Toeing the Line

Wed, 04 Jun 2025 14:50:42 GMT

"The difference between tax avoidance and tax evasion is the thickness of a prison wall." (Denis Healey, former UK Chancellor of the Exchequer)

The line between tax avoidance and tax evasion can sometimes appear blurry, especially in complex transactions or fierce tax planning strategies. The comparison below is a good starting point:

What is tax avoidance?

Tax avoidance refers to legal arrangements or transactions designed to reduce or eliminate tax liability, without breaking the law.

Examples of tax avoidance include:

Moving a company into a special economic zone for the sole reason of achieving a lower corporate income tax rate.
Timing the sale of capital assets to control the timing of capital gains and losses.
Getting your company to pay for a motor vehicle or other expenditure as it may, depending on the circumstances, be taxed at a lower rate.
Placing a large amount of your income into a retirement fund to obtain the highest deduction possible.
Investing in tax-free savings accounts (this applies to individuals only).

Often termed “permissible tax planning”, tax avoidance is legal and accepted. However, when tax avoidance becomes overly aggressive or artificial (i.e., lacking commercial substance), it may cross into what tax authorities consider “impermissible” or “abusive” tax avoidance. This, while not necessarily criminal, may be challenged under anti-avoidance rules such as the General Anti-Avoidance Rule (GAAR).

South Africa employs GAAR to counteract tax avoidance strategies that exploit loopholes. These rules allow tax authorities to disregard or re-characterise transactions that have the primary purpose of avoiding tax.

What is tax evasion?

Tax evasion is characterised as the illegal act of deliberately and intentionally avoiding paying taxes, either by avoiding paying tax entirely, or by illegally reducing or deferring taxes payable. It can involve hiding or ignoring one's tax liability by making false representations or statements, or hiding income or information that would otherwise be subject to taxation.

Examples of tax evasion include:

Failing to file required tax returns
Making false statements on tax returns
Failing to declare income or deliberately underreporting income
Claiming personal expenses as business expenses
Over-declaring expenses, which may include falsifying invoices
Using multiple entities without legitimate business purpose
Moving money through multiple accounts to obscure its source

SARS uses data-driven insights, self-learning computers, and artificial intelligence to combat tax evasion, and is empowered to conduct criminal investigations into tax offences and work with the criminal justice system to prosecute offenders.

Tax evasion can result in severe penalties of up to 200% of the shortfall in tax, plus interest, and even jail sentences of five years or more.

Best practices for legal tax avoidance

Stay updated with ever-changing tax legislation to make informed decisions.
Structure your business operations or transactions in a manner that legally minimises taxes – for example, operating as a sole proprietorship or a private company have different tax implications.
Engage in permissible tax planning by adhering to all tax laws and regulations, and avoiding abusive tax schemes designed to exploit loopholes in the tax laws.
Utilise all tax deductions, credits, exemptions and incentives, including deductions for business expenses, tax credits for certain investments or activities.
Comply with reporting requirements and avoid penalties and interest by filing accurate tax returns on time.
Maintain accurate records of all your financial transactions and tax-related documents to ensure all claims and deductions can be substantiated when required by SARS.
Ensure transparency and full disclosure by always providing full and accurate information on tax returns: concealing information or providing misleading details can easily cross the line into tax evasion.

Best practice as a service

By adhering to these best practices, taxpayers can effectively employ tax avoidance strategies without crossing the line into the realm of tax evasion.

The best way to ensure all these best practices are implemented in your tax affairs is simply to work with our team of tax professionals. We are knowledgeable about the ever-changing tax laws and have the expertise and experience to provide tailored advice and solutions that keep you on the right side of the law while minimising your tax burden to the full extent permissible.

Budget 3.0: SARS Gets a Major Cash Injection, But Will It Deliver?

Thu, 29 May 2025 06:18:31 GMT

In a bold move to ramp up tax collection efforts, Finance Minister Enoch Godongwana has announced an additional R4 billion in funding for the South African Revenue Service (SARS) over the next three years, bringing the total additional allocation to R7.5 billion.

The investment is aimed at enhancing SARS’s operational capabilities, modernising its systems, and increasing its effectiveness in collecting revenue.

Delivering his third national budget on 21 May 2025, Godongwana confirmed that the initial plans to raise VAT to fund government expenditure have been abandoned, and that a fuel levy increase set for June won’t be sufficient to address the country’s fiscal shortfall over the medium term. With limited options to grow the tax base, government is placing its bets on SARS to recover more from existing taxpayers.

To meet these ambitious targets, SARS Commissioner Edward Kieswetter has already onboarded 500 new debt collectors, with 250 more expected in June. He estimates these efforts could generate at least R20 billion, targeting a broader R120 billion in outstanding composite debt. Godongwana is even more optimistic, projecting potential collections of up to R35 billion.

However, with little expansion in the tax base, it’s clear that SARS will be turning up the heat on individual and corporate taxpayers alike. Increased audits and disputes are expected as SARS intensifies its collection drive.

Now more than ever, having robust tax risk insurance is essential. If you or your clients are selected for an audit or face an unfair tax reassessment, this cover ensures expert support without the stress or financial burden.

Key Tax Updates for 2025/26 in South Africa

Thu, 22 May 2025 13:27:08 GMT

The South African Revenue Service (SARS) has released its 2025/26 Budget Tax Guide, offering individuals and businesses critical updates to help them remain compliant and efficient in their financial planning. Tax remains one of the most significant factors impacting take-home pay, investment planning, and business operations.

From 1 March 2025 to 28 February 2026, the tax brackets for individuals and special trusts have remained unchanged. The starting rate remains at 18% for income up to R237 100, scaling to 45% for income exceeding R1 817 000. Notably, there have been no inflationary adjustments to personal income tax brackets or rebates. The primary rebate stands at R17 235, with additional rebates for individuals over 65 and 75

Retirement and Savings-Related Tax Rules

Retirement fund withdrawals and benefits have their own unique tax tables. Withdrawals up to R27 500 are tax-free, with rates increasing in bands up to 36% for larger lump sums. New tax treatment for savings withdrawals under the two-pot retirement system now applies, with withdrawals from the savings component taxed at marginal rates.

Capital Gains, Dividends, and Interest

Capital gains tax (CGT) rates remain consistent, with a maximum effective rate of 18% for individuals. Dividends continue to be taxed at a flat 20% unless exempted under specific conditions. Foreign dividends are generally taxed at up to 20%, and interest exemptions remain at R23 800 for those under 65 and R34 500 for those over.

Fringe Benefits and Travel

Employers must take note of updated fringe benefit calculations for vehicles, accommodation, and interest-free loans. Vehicle travel deductions are based on a refined table, with costs calculated per kilometre depending on vehicle value. A rate of R4.76/km applies for simplified business travel reimbursements.

Business Taxation and Turnover

Companies will continue to be taxed at 27%. Small Business Corporations (SBCs) and Micro Businesses benefit from tiered tax structures that offer relief at lower income levels. Turnover tax remains 0% for income up to R335 000, gradually increasing to a maximum of 3%.

Levies and Withholding Taxes

The Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) contributions, and withholding taxes on royalties, interest, and dividends continue as per previous years, with slight increases in excise duties on alcohol, tobacco, and fuel starting June 2025.

How Much Do Individuals Really Pay?

Mon, 12 May 2025 07:29:51 GMT

Tax is an essential part of any functioning economy, enabling governments to fund services like healthcare, education, infrastructure, and public services. However, as the South African Revenue Service (SARS) employs increasingly aggressive methods to collect taxes, many individuals may wonder how much they truly pay and how the system affects their finances.

The Complexities of Tax Collection

The South African tax system is intricate, with various forms of taxation targeting both individuals and businesses. SARS uses different techniques to ensure taxpayers comply with their obligations, including calling taxpayers two to three weeks before the provisional tax deadline to request information on their payments. This may feel intimidating, especially for those who have been compliant in the past. SARS’ approach is designed to reduce non-compliance, but it also raises concerns about undue pressure on taxpayers.

How SARS Determines Tax Liabilities

Tax practitioners have observed these intensifying efforts at the start of the financial year, with measures continuing through to 31 March. As tax season progresses, many individuals may face the challenge of understanding the total amount they owe and how their financial situation may impact their tax liabilities. While SARS has a mandate to ensure compliance, there is often a fine line between diligent pursuit of tax and excessive pressure on taxpayers.

The Aggressive Tactics Employed by SARS to Collect Tax

Understanding how SARS calculates tax is crucial for taxpayers. In a recent case, the South African courts ruled on a matter where the taxpayer had failed to disclose the full amount of tax owed. The ruling made it clear that when there is a misrepresentation or non-disclosure, SARS can adjust the tax assessment. This case highlights the importance of accurately reporting income and deductions to avoid complications with tax assessments.

How SARS Determines Your Tax Liability: Key Insights

The full amount of the tax paid must reflect the accurate figures disclosed by the taxpayer in their returns. Any omission or error can result in an additional assessment, and taxpayers may end up owing more than initially anticipated. In this context, it is critical to understand what is deductible and what must be disclosed, as SARS may impose additional penalties or interest for underreporting.

Avoiding Penalties: The Importance of Accurate Tax Reporting

In one case, SARS cancelled the insurance premium that had been claimed as a deduction, arguing that it was not valid. This ruling reinforces the need for careful record-keeping and the correct application of tax laws. Taxpayers should always verify their claims to ensure they are in line with current legislation.

Understanding the Importance of Accounting in Business Success

Thu, 08 May 2025 07:18:15 GMT

Accounting is one of the most crucial aspects of any business, large or small. It serves as the backbone for managing finances, monitoring cash flow, and ensuring legal compliance with tax regulations. Whether you’re running a small startup or a multinational corporation, having a solid accounting system is vital to keep everything on track.

How Accounting Helps Your Business Stay on Track

Proper accounting helps businesses maintain financial stability, track their income and expenses, and make informed decisions about future growth. It allows you to understand where your money is coming from and where it’s going, which is essential for strategic planning. Additionally, accounting provides insights into the profitability of different sectors of your business, allowing you to make smarter investment decisions.

The Role of Accounting in Tax Compliance

One of the most important functions of accounting is its role in tax compliance. By keeping accurate records, businesses can easily file their tax returns, avoid fines, and stay on the right side of the law. This is especially important for small businesses, as they might not have the resources to cover unexpected penalties or audits. A good accounting system ensures that all tax obligations are met on time, reducing the risk of legal complications.

Generating Financial Statements for Strategic Decision-Making

Another major benefit of accounting is the ability to generate financial statements. These documents, such as balance sheets, income statements, and cash flow statements, provide a comprehensive picture of your financial health. They help you assess your company’s performance, identify areas for improvement, and plan for the future. Investors, lenders, and other stakeholders also rely on these documents when deciding whether to support your business.

How Accounting Can Optimize Business Resources and Operations

Moreover, accounting isn't just about number-crunching; it's about strategy. With the right accounting tools and practices, businesses can streamline operations, optimize resources, and identify cost-saving opportunities. Financial reports generated by your accounting system can highlight inefficiencies, allowing you to adjust and allocate resources more effectively.

The Long-Term Benefits of Proper Accounting Practices

To sum up, accounting is a key factor that determines the long-term success of a business. From helping with tax compliance to providing a clear picture of financial health, the benefits are immense. Embracing proper accounting practices will not only help you run a smoother business but will also position you for growth and success.

Financial statements are essential for investors assessing a company's profitability.

Mon, 05 May 2025 07:02:07 GMT

Financial statements are crucial for investors looking to assess a company’s profitability, health, and risks. However, they can sometimes be misleading, especially in industries like mining and agriculture, which are pivotal in South Africa’s economy. In this blog, we’ll explore the key nuances of accounting practices in South Africa and how investors can make informed decisions.

The Importance of Accounting in Financial Reporting

Accounting provides transparency, yet financial statements can still be obscured by certain practices. For example, revenue recognition in industries such as retail and mining can be manipulated to show short-term profits. Understanding how these accounting methods work can help investors spot potential risks in a company’s financial health.

Revenue Recognition and Accounting Challenges

In South Africa, companies may use revenue recognition techniques that distort actual performance. Retailers might book holiday sales prematurely, while mining companies often delay recognising long-term contracts. These methods can present an inflated view of a company’s earnings, which could lead to financial instability in the future.

Off-Balance Sheet Risks and Accounting Pitfalls

Financial ratios, such as profit margins, are often used to measure a company’s performance. However, they may become less meaningful if firms use techniques like FIFO (First-In, First-Out) to report higher profits during commodity price increases. In addition, companies may rely on off-balance sheet transactions to hide liabilities, leading to further risk for investors.

Navigating Accounting Practices in Volatile Markets

Given South Africa’s market volatility, particularly in industries like mining and agriculture, investors must be vigilant when interpreting financial statements. Regulatory changes, such as new taxes or environmental policies, can also impact a company’s bottom line. Investors need to examine accounting methods closely to better understand how these changes may affect a business.

What Investors Should Look For in Accounting Disclosures

To make informed decisions, investors must scrutinise the accounting policies disclosed in financial statements. This includes looking into revenue recognition methods, especially in industries like construction, and understanding the use of FIFO versus LIFO in mining companies. Additionally, checking for audits from IRBA-registered professionals can provide further assurance.

The Role of Accounting in Informed Investment Decisions

Investors must approach financial statements with caution, especially in a complex market like South Africa’s. By understanding the nuances of accounting practices, regulatory changes, and industry-specific challenges, investors can mitigate risks and capitalise on opportunities. Accounting may not always tell the full story, but with careful analysis, stakeholders can make more informed and successful investment choices.

The Power of AI in Accounting: Transforming Financial Planning and Forecasting

Sun, 27 Apr 2025 06:38:15 GMT

In the fast-paced world of accounting, financial planning and forecasting often come with challenges. Traditional methods can be slow, rigid, and manual, making it hard for organisations to keep up with the pace of change. Fortunately, AI and machine learning are revolutionising the way businesses approach these processes, offering faster, more accurate results.

How AI Improves Accounting and Financial Forecasting

AI’s potential in accounting is immense. By using machine learning and automation, companies can streamline financial forecasting, making it faster and more accurate. AI can help businesses:

Generate more precise financial forecasts
Run multiple scenarios with ease
Update forecasts more frequently to provide timely insights

These improvements can lead to financial planning cycles being 30% faster and forecasts that are 20% to 40% more accurate. Moreover, overall productivity in finance can increase by up to 30%, allowing CFOs and finance teams to focus on more strategic activities.

Dynamic Steering: The New Approach in Accounting

A new approach known as "dynamic steering" integrates AI with accounting processes, helping companies adjust quickly to changing conditions. By automating data processes and feeding them into advanced models, organisations can continuously monitor and update their financial outlook. This means better planning and forecasting at the click of a button, enabling businesses to adapt more easily to market fluctuations.

Improving Efficiency with Predictive Models

Predictive models powered by AI offer even more benefits to accounting teams. These models generate more accurate forecasts with fewer biases, factoring in both internal and external data like consumer spending and market trends. This results in better decision-making and fewer errors, which is vital for businesses that want to stay ahead of the competition.

Generating Insights with AI in Accounting

AI is not just about generating forecasts, it’s also about deriving actionable insights. With tools like generative AI, accounting teams can rapidly uncover the root causes of variances and inefficiencies, allowing them to act quickly and make informed decisions. This makes the financial team’s role much more dynamic and strategic, rather than just reactive.

Implementing AI for Better Accounting Practices

For companies looking to implement AI in their accounting practices, starting small and moving fast is key. Begin by integrating AI into specific financial processes, such as revenue forecasting or budget planning. As the systems prove their value, scale them across the organisation. It’s essential to ensure that the technology supports the company’s goals and fits with its existing processes to achieve the best results.

The Future of Accounting with AI

AI in accounting is no longer a futuristic concept it’s a present-day reality. By embracing dynamic steering, predictive models, and data-driven insights, companies can transform their financial planning and forecasting processes. With faster, more accurate results, accounting teams can better support decision-making, drive business growth, and adapt quickly to changes in the market.

0.5% VAT Increase Suspended!

Thu, 24 Apr 2025 14:16:28 GMT

Following the Finance Minister’s announcement on 23 April, the proposed VAT increase set to take effect on 1 May 2025 has officially been withdrawn for now.

The Finance Minister announced on 23 April that the planned VAT increase, originally scheduled for 1 May 2025, has been officially put on hold. Here's what your business needs to know.

Reviewing and Reversing VAT-Related Changes

If you’ve already made updates to your systems or communications in preparation for the anticipated VAT increase, it’s important to carefully review and reverse any changes where necessary. Acting promptly will help maintain accuracy, ensure compliance, and prevent potential issues with customers or regulatory bodies. This may include:

Ensure your invoicing, accounting, and ERP systems reflect the unchanged VAT rate to avoid billing or tax errors. Double-check all templates and settings.
Revisit any pricing or contract changes made in anticipation of the VAT increase. Amend terms or pricing where necessary to stay aligned with the current rate.
Inform clients and suppliers that the VAT rate has not changed. Update any previous communications or pricing notices to maintain transparency and avoid confusion.

If you're unsure how this impacts your business or need help updating your systems, we're here to support you. From pricing reviews to system adjustments, we’ll make sure you're fully aligned with the current VAT rules.

Contact us today for tailored assistance and peace of mind.

0.5% VAT Increase Set to Take effect 1 May 2025

Tue, 15 Apr 2025 09:13:35 GMT

The proposed VAT rate increase is scheduled to come into effect on 1 May 2025.

While there is a pending High Court application to stop the VAT hike, as at the time of writing the implementation date remains in place. Unless and until the increase is interdicted by the High Court, or a political decision is made to reverse or suspend it, businesses must comply with the new rate from 1 May.

We encourage all businesses to ensure their systems are updated accordingly. This includes:

Updating your invoicing and accounting software to apply the correct VAT rate from the effective date

Reviewing any contracts or quotes that extend beyond 1 May

Considering necessary adjustments to your pricing structures

Communicating changes clearly to clients and suppliers

If you are unsure of what needs to be done or how best to implement the changes, we are available to assist.

How to Fund Your Start-Up with Grit and Local Insight

Fri, 04 Apr 2025 11:50:23 GMT

In the world of entrepreneurship, securing funding often feels like stepping into a boxing ring: gloves on, strategy set, and heart pounding. But as Ndia Magadagela, CEO of Everlectric, shares in the April 2025 issue of Accountancy SA, this challenge is not just about raising money — it is about raising expectations. Of yourself, your business, and your impact.

Tell the Right Story with Local Relevance

A common misstep for many start-ups is replicating global trends without considering the local context. What works in Silicon Valley or Nairobi might not resonate with investors in Johannesburg or Durban. South African investors want to see solutions that speak directly to the country’s unique economic, social, and environmental realities.

If you are building a green logistics solution or pioneering fintech aimed at financial inclusion, present your value proposition in a way that reflects the South African experience. Reference local case studies, address regional challenges, and demonstrate that your product or service has been developed with this market in mind. When you root your pitch in context, it becomes more than just a sales tool — it becomes a testament to your insight and relevance.

Rejection is Part of the Journey

It is no secret that 'no' is something entrepreneurs hear far more than 'yes'. Yet every rejection offers a chance to refine your pitch, enhance your product, and gain perspective. As Magadagela notes, rejection can open unexpected doors. It provides the opportunity to pause, reassess, and return stronger.

Psychologist Angela Duckworth defines grit as the ability to persevere in pursuit of long-term goals. True entrepreneurs are those who rise again after each fall, learning and improving with every setback. This resilience is not just desirable - it is essential.

Fundraising Demands Resilience and Vision

Raising capital is a demanding process. It requires a clear and compelling vision, adaptability, and the determination to keep going when things get tough. Investors are not just offering financial support — they are investing in your belief, your ability, and your plan for impact.

As you prepare for your next conversation with potential backers, remember that your local knowledge is a powerful asset. Your story, shaped by experience and insight, is what sets you apart. And your grit — your ability to persevere through the highs and lows — is what will carry you forward.

The entrepreneurial path in South Africa is filled with both challenges and opportunity. With the right mindset, strategy, and network, you can do more than just raise capital. You can raise the standard.

Now is the time to lean in, stay resilient, and move forward with purpose. You are not just building a business, you are building the future.

# Difference Makers - Integritax

Fri, 04 Apr 2025 11:38:31 GMT

Important Notice

As mentioned by the Minister of Finance in his March 2025 Budget speech, changes have been proposed to the Employment Tax Incentive Act. Further details on the impact of this proposal, which came into effect on 1 April 2025 can be found on the following link .

The March edition of the OTO’s Fair Play newsletter is now available. This edition contains content on reflections on the OTO’s 2024/25 financial year, bank verifications for VAT refund purposes and the impact of perceived fairness in the tax system on tax compliance.

Lead, Influence, Inspire

SAICA submission
SAICA submission to Parliament on the 2025 Budget Review document

Contribute your view
SARS has published a Draft Interpretation Note which deals with the taxation of amounts received by or accrued to missionaries for public comment. Comments can be sent to SAICA and are due by Friday, 2 May 2025

Tax Tips

Employers are to note that employer annual EMP 501 declarations are due for submission to SARS. Submission dates run from Tuesday, 1 April 2025 to Saturday, 31 May 2025 . As previously advised, SARS has introduced updates to e@syFile and employers are encouraged to use this new version when submitting their declarations. To download the latest version of e@syFile follow this link .

CPD

Save the dates:

For insights into what the Tax in Practice webcast entails, please access here .

For other events, please visit the SAICA Events bookings portal .

Delegates who book and attend live SAICA webcasts or face-to-face events will receive a Confirmation of Attendance email within 8 to 10 days of attendance confirming that the registered delegate attended the stated webcast or event, as well as the duration of the webcast or event. Certain institutions and regulators may however require a Confirmation of Completion certificate as evidence of verifiable CPD.

To obtain a Confirmation of Completion certificate, whether for attending a live webcast or event or watching a recording on the SAICA eVolve system , you have to successfully complete the relevant assessment and achieve a pass mark of at least 75%. Once the assessment has been passed you can download a Confirmation of Completion certificate. SAICA accepts both the Confirmation of Attendance and the Confirmation of Completion certificates as evidence of verifiable CPD completed by members. The learning and assessment must have taken place in the period under review (i.e. 1 January - 31 December) so that the report reflects such.

Please email seminarsandevents@saica.co.za to receive your CPD confirmation.

Please refer to the SAICA CPD FAQ document for further information.

Integritax quizzes
Access eVOLVE our new online Learner Management System (LMS) and answer the Integritax monthly quizzes to earn up to 30 minutes CPD per article.

Integritax journal

The following articles, which over an opportunity to earn CPD questions (30 minutes CPD per article) are available in the April edition of the Integritax Journal:

Section 24C and contracts other than construction . This article examines instances outside of the construction industry when section 24C of the Income Tax Act is likely to apply (Author: Deborah Tickle )
The UK’s corporation tax instalment payment rules . This article provides guidance on the application of the corporation tax instalment rules in the UK (Author: Leontia Doran )
The 2024 amendments to the foreign tax rebate. This article examines the most recent amendments to section 6qaut of the Income Tax Act, which came into effect as result of the 2024 Taxation Laws Amendment Act (Author: Duncan McAllister )

The following (non-CPD articles) are also included in the April edition of the journal:

SARS updates . This article includes updates on SARS deadlines for third party reporting, technical difficulties with the donations tax form and interest due on outstanding VAT refunds (Author: Somaya Khaki )
Once I caught a fish alive (Author: Nomvula Masehla )

Technical Resources And Support

Tax operational query support
If you have any SARS operational queries that you have been unable to resolve by following the SARS escalation channels, you may log these on the SAICA Member Portal for referral to SARS.

SAICA technical resources
An archive of resources or information published on, inter alia, the SARS and National Treasury websites can be accessed on Tax: Legal and Policy .

Contemporary Gazette
Members can access the Contemporary Gazette which provides, inter alia, a comprehensive database of new laws. To login, use the following details:

Login name: saica(membership number), for example saica123456789.
Password: membership number.

Legal and policy
See the latest on the SAICA Legal and Policy , including:

United Manganese of Kalahari (Pty) Limited v Commissioner of the South African Revenue Service and four other cases (CCT 94/23; CCT 98/23; CCT 66/23; CCT 72/24; CCT 320/23) [2025] ZACC 2 (31 March 2025)

These five cases were heard together because they raise overlapping questions about the interpretation and application of section 105 of the TAA. The TAA introduced a uniform regime for objecting to assessments and decisions by SARS and appealing such assessments and decisions to the Tax Court.

Updates by SARS to the Customs and Excise Bonds policy to provide clarity on consignor bonds, explain the rule for the correction of surety bonds, include Rule 12.08 and remove financial institution and bank names.
SARS guide on anti-dumping, countervailing, and safeguard duties
Commissioner for the South African Revenue Service and Another v Richards Bay Coal Terminal (Pty) Ltd (CCT 104/23) [2025] ZACC 3 (31 March 2025 )

Customs and Excise Act 91 of 1964 - tariff determination - section 47(9)(e) - wide appeal - review in terms of Promotion of Administrative Justice Act 3 of 2000, section 33 of the Constitution, or alternatively, the principle of legality - rule 53 record - rule 30A application - review jurisdiction - whether taxpayer confined to a wide appeal.

Binding Class Ruling 92 and Binding Private Ruling 414 which deal with the application of the proviso to section 8EA(3)
Interpretation Note 138 which deals with determining the calorific value of coal for purposes of the royalty is now available.
A summary of the Biskit (Pty) Ltd v Commissioner for the South African Revenue Services (6156/2023) [2025] ZAFSHC 71 (13 March 2025) case in which the Court had to assess whether a decision by SARS to seize goods was procedurally fair.
A summary of the X and Another v Commissioner for the South African Revenue Service (52/2023) [2024] ZATC 12 (2 December 2024) case in which the Court had to decide whether a taxpayer’s objection to SARS’ assessment was valid given they had failed to provide requested supporting documents.
A summary of the Aveng Mining Shafts and Underground v Commissioner for the South African Revenue Service (1192/2023) [2025] ZASCA 20 (17 March 2025) case in which the Court had to decide whether entertainment costs incurred by a taxpayer involved in the mining industry were subject to a VAT deduction under section 17(2)(a)(i).
SARS FAQ’s on the domestic reverse charge regulations and supplies of electronic services .

General

Read the requirements for membership and apply for the below vacancies:

Central Region Tax Sub-committee (1 x vacancy)
Northern Region Tax Sub-committee (1x vacancy)
National Tax Operations (1 x vacancy for Small or Medium Practice and 1 x vacancy for any constituency)

Tax Practitioners

If you are a tax practitioner looking to deregister your SAICA tax practitioner profile, please refer to the following document for guidance on how to complete this task.

SARS has issued a guide on the criteria for registration of tax practitioners. Follow this link to access the guide.

As advised in late 2024, SARS’ updated Tax Practitioner Readiness Programme will come into effect in January 2025. Changes in this regard will apply with effect from 13 January 2025 and any prospective tax practitioners will be expected to pass the assessment based on the updated learning material. For more information please follow the link .

The SAICA 2024 Tax Practitioner Annual Declaration is no longer accessible on the SAICA Member Portal . As previously communicated, tax practitioner declarations submitted after Friday, 31 January 2025 will be considered late declarations. Late declarations or non-responsiveness constitutes non-compliance with the SAICA by-laws, and tax practitioners who have not submitted or submitted the declaration late will be referred to SAICA’s Legal and Discipline department for sanctioning as per SAICA’s disciplinary code. Tax practitioners who are found to have made dishonest declarations will also be referred to the SAICA Legal and Discipline department for sanctioning, as this amounts to unethical behaviour and is in contravention of the SAICA Code of Professional Conduct. A notice of non-compliance will be issued to affected tax practitioners.

Tax practitioners selected for monitoring were requested to submit evidence of compliance with CPD requirements and a commissioned criminal free status affidavit by Friday, 7 February 2025. SAICA is currently processing the responses and evidence submitted to confirm compliance, this in preparation for submission to SARS for the Recognised Controlling Body (RCB) Compliance report. Disciplinary action will follow in line with SAICA’s Disciplinary Code and Procedures for tax practitioners who were selected for monitoring and failed to respond or provide the requested evidence. Monitoring outcome notices will be issued to all tax practitioners selected for monitoring once the member compliance unit have finalised the process. Read the Tax Practitioner Obligation webpage for more information on the regulatory requirements and registration/deregistration processes relating to tax practitioners.

The SARS MobiApp is one of the digital platforms that enables tax practitioners to access profile information, monitor compliance with tax obligations, and transact on behalf of their clients easily and effortlessly. To support tax practitioners in managing their clients’ tax matters, a comprehensive SARS guide on using SARS MobiApp has been developed.

The March edition of SARS’ Tax Practitioner Connect newsletter is now available. This edition contains content on the donations tax form and how to make reportable arrangement submissions via eFiling.

Tax Related Comments ,Compliments & Complaints

Tax related comments, compliments and complaints Email SAICA

Webinar | Audit Committee Practices Report

Fri, 04 Apr 2025 11:37:25 GMT

Audit Committee Effectiveness: A Webinar Series | Episode 7

Welcome to Audit Committee Effectiveness: a webinar series brought to you by the Center for Audit Quality and the National Association of Corporate Directors. The series explores key takeaways and insights from leaders in the financial reporting ecosystem alongside resources developed to aid audit committees and public company board members. Stay tuned to this page for information about topics, participants, and how to register for upcoming webinars.

CAQ

Join us for a discussion about the fourth edition of the Audit Committee Practices Report, a collaboration between Deloitte’s Center for Board Effectiveness and the Center for Audit Quality. Based on survey findings, this webinar offers audit committee members and those who work with them an opportunity to hear about committee priorities, challenges, and opportunities, as well as leading practices around audit committee effectiveness.

Note : This webcast is eligible for 1 CPE credit to those who attend the webcast live.

Participants

Event Materials

Audit Committee Practices Report: Common Threads Across Audit Committees, 4th edition

Fourth edition of the Audit Committee Practices Report, a joint effort between Deloitte's Center for Board Effectiveness (Deloitte) and the Center for Audit Quality (CAQ),

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Why Your Cash Flow Problems May Be Down to Your Behaviour

New behaviour = Better cash flow

Streamlining In-House Accounting Processes with AI

Benefits of AI in accounting processes

What AI means for your business

Not a silver bullet

Budget 2026: Your Tax Tables and Tax Calculator

Individuals taxpayers

Tax limits adjusted

Sin taxes raised

Fuel Levy hikes

How much will you be paying in income, petrol and sin taxes?

Budget 2026: What it Means for You and Your Business

No income tax or VAT increases

Inflationary relief, finally

Capital gains tax limits

Corporate tax

Sin taxes & fuel

Other tax proposals

Managing your taxes in the new tax year

Navigating the 2026/27 SARS Tax Landscape with Experts

Individual Tax Brackets and Thresholds

Corporate Tax and Small Business Rates

Strategic Savings and Investment Limits

Capital Gains and Dividends

Individual Tax Brackets and Thresholds

VAT and Compliance Updates

Your Year-End Tax Checklist: Smart Moves Before 28 February

1. Boost your retirement savings

2. Top up your Tax-Free Savings Account (TFSA)

3. Consider making a section 18A donation

4. Review your investment gains and losses

5. Check your interest income

6. Gather all your Tax Certificates

7. Review medical and other allowable expenses

8. Provisional taxpayers: Double‑check your estimate

Why Doing Nothing May Be the Best Thing You Can Do

You don’t make decisions with insufficient information

You avoid solving problems that aren’t real yet

You delay irreversible decisions

You prevent emotional decision-making

You let existing systems run before changing them

You conserve focus and organisational capacity

You use time as a risk-management tool

The bottom line: Choosing not to act is still a decision

So, You Want to Diversify? You Might Be Making a Mistake

Diversification feels safer than it actually is

Complexity is a hidden tax on performance

Focus is a force multiplier

Diversification often masks unresolved core weaknesses

Operational excellence doesn’t scale sideways

Small and fast – Or big and slow?

Diversification can dilute brand meaning

The most resilient businesses often look concentrated, not diversified

Simplicity is not stagnation

Don’t ask “Can we?” but “Should we?”

Your Tax Deadlines for February 2026

February 2026:

February Provisional Tax Deadline: How to Avoid Stiff Underestimation Penalties

Must you pay provisional tax?

What is provisional tax?

Three provisional tax payments each year

Further penalties to watch out for

Rely on our expert assistance

Our Top Tips for Communicating Price Changes

“People don’t mind price increases as much as they mind surprises.” (Robert Cialdini, Psychologist and Business Author)

“We’ll lose customers if we raise prices”

“Customers won’t care about the reason”

“If we apologise enough, customers will be less upset”

“We should wait until the last minute to avoid backlash”

Outlook 2026: Moving Forward with Confident Resilience

Common challenges & shared priorities

Investment priorities for global and Africa CEOs

Talent in the age of AI

ESG and sustainability

Confident resilience

Harnessing the New Year’s “Fresh Start Effect” for a Great 2026

“A fresh start is not a place, it is a mindset.” (Jordan Peterson)

Capturing the moment: Practical strategies for January 2026