“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.
“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.
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.
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:
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“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.
“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…
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.
The third provisional tax payment is voluntary — but ignoring it could cost you in interest and penalties.
For individuals and companies with February year-ends, this payment is due by 30 September. For entities with other year-ends, it’s due six months after the tax year-end.
This top-up payment is a strategic opportunity to minimise interest and penalties on tax shortfalls not covered by the first two provisional payments.
⚠️ Why SARS May Penalise You
A penalty may be levied if your actual taxable income (as declared in your final tax return, ITR12) exceeds the estimated income submitted in your second provisional return (IRP6).
This is especially relevant if your estimate was too low — even unintentionally.
SARS applies different rules depending on your taxable income:
💼 Taxable Income of R1 Million or Less
You may face an under-estimation penalty if:
Penalty Calculation:
20% of the difference between the tax payable on your estimate and the lesser of:
💼 Taxable Income Greater Than R1 Million
SARS does not consider the basic amount.
Your second provisional estimate must be at least 80% of your actual taxable income.
Penalty Calculation:
20% of the difference between the tax payable on your estimate and the tax on 80% of your actual taxable income.
✅ What You Should Do
We recommend reviewing your previously submitted IRP6 returns for the relevant tax year. Compare these to your actual or best-estimate taxable income.
If there are discrepancies — such as:
SARS now mandates that ALL Trusts submit IT3(t) third-party returns, these returns are non-negotiable and will be used to cross-reference beneficiary, donor, and Trust tax submissions. Any inconsistencies may trigger penalties, audits, and reassessments.
The ITR3(t) for Trusts requires the following information:
SARS will compare all third-party returns to ensure that the correct parties are taxed and that no revenue is lost. Section 7C Donations Tax may apply to low-interest or interest-free loans, and donors must declare these amounts in their own tax returns.
The IT3(t)’s are due by September 30, the expectation is that Trustees must have finalised financial records by then. They also have to perform a reconciliation between amounts to be reported on the IT3(t) and amounts reported/to be reported by donors/funders, beneficiaries, and the Trust in their respective provisional tax returns, annual tax returns, and donations tax returns.
Trustees must keep proper systems in place to manage the required information effectively. With SARS’ renewed focus on the compulsory application of rules to avoid SARS to be out of pocket and to reduce Trustee from blindly distributing all income and capital gains to beneficiaries who paid little or no tax.
The submission includes amounts attributed to donors/funders – it is a misconception that the IT3(t) only deals with amounts distributed to beneficiaries.
Non-Compliance Consequences:
Please note that the full responsibility always rests with Taxpayer.
We urge you to act immediately. Failure to comply may result in financial and legal consequences.
Companies failing to maintain proper share registers could face fines of up to R1 million — and directors may even face jail time.
Under the Companies Act, every director is legally responsible for ensuring that the company’s registers are:
The securities register must be updated as soon as practicable after receiving consideration for shares (Section 40(4)(b)). This is not something that can be delayed until “needed” — it’s a statutory obligation.
Why It Matters
The share register is the legal evidence of shareholding.
If your name isn’t recorded in the register, you’re not legally recognised as a shareholder — even if you paid for the shares.
This has serious implications if disputes arise or if the company faces legal or financial scrutiny.
What Happens If You Don’t Comply?
Failure to maintain registers will be flagged as a reportable irregularity during:
CIPC will issue a compliance notice, requiring the company to correct the issue.
If the company fails to comply:
What You Should Do
If you’ve already prepared a register in accordance with the Act — this is your reminder to keep it updated.
If not, now is the time to act.
The risks of delay or neglect are simply too high.
“Transactions or speculation in crypto assets are subject to the general principles of South African tax law and taxed accordingly.” (SARS)
A staggering 5.8 million South Africans hold a crypto asset, with Southern Africa boasting the largest uptake of Bitcoin in the world.
SARS has not failed to notice the phenomenal growth of various digital currencies and crypto assets and is now dedicating substantial resources to ensure that crypto assets and trades are declared on taxpayers’ tax returns.
How are crypto assets taxed?
While crypto assets are not considered legal tender, transactions or speculation in crypto assets are subject to the general principles of South African tax law.
Normal income tax rules apply and affected taxpayers need to declare crypto assets’ income, and gains or losses in the tax year in which it is received or accrued.
Income from crypto assets transactions can be taxed under “gross income” or it can be seen as a capital gain (and subject to CGT). Whether an accrual or receipt is revenue or capital in nature is tested under existing tax law, of which there is plenty.
Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.
Base cost adjustments can also be made according to the CGT rules. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:
The onus is on taxpayers to declare all income and gains related to crypto assets.
Stricter enforcement
SARS has intensified its focus on crypto asset trading recently, significantly improving its capacity to detect crypto activity and non-compliance. They have done this by:
Since last year, SARS has been sending Audit and Request for Relevant Material Notices to taxpayers who have traded, invested or even used crypto assets for purchases.
This is possible because SARS now has access to trading data directly from crypto exchanges. This includes information on taxpayers who have traded in crypto assets but may not have disclosed these activities on their tax returns. In addition, through multilateral agreements, SARS is exchanging information with other tax authorities globally, in line with global tax enforcement trends.
What’s more, the establishment of SARS’ specialised Crypto Asset Unit is a clear indication that crypto asset taxation has become a priority.
What must I do?
Taxpayers engaged in crypto asset transactions should ensure their tax affairs in this respect are fully compliant. Failure to comply could result in audits and investigations; interest and penalties at percentages as high as 200%, as well as further legal repercussions.
The SARS Voluntary Disclosure Programme (VDP) provides an opportunity for taxpayers who have not declared their crypto holdings to achieve compliance and to avoid potential penalties and interest. However, the VDP has strict conditions, one of which is that the taxpayer must voluntarily approach SARS first, before SARS initiates further action. Once SARS has identified a taxpayer for audit, they can’t apply for the VDP.
How we protect your interests
Relying on accounting and tax expertise is essential for correctly assessing any historical crypto tax liability and possibly making voluntary disclosures, correctly declaring current crypto asset transactions, and ensuring compliance requirements are met proactively.
