Category: Uncategorized

I recall a meeting with a client once, to discuss their financials. The client had a great year, and the numbers showed it. But they seemed occupied. Upon my inquiry about why they looked so gloomy, the client explained that they had been approached by an investor interested in buying a share in their business.
 
  “That’s terrific news," I exclaimed, knowing they had been trying to raise funding for expansion plans. “Imagine the possibilities an equity injection can bring to your business,” I eagerly chimed. They agreed with my sentiments but were unhappy that they had to engage someone they didn’t know to value their business as a prerequisite by the said investor.
 
  “I can do it,” I said. I was met with surprised looks.
 
  “You?” they said, trying hard not to sound patronising.
 
  “Yes,” I confirmed, “we do it all the time and for many different businesses”.
 
  We can perform valuations, mergers and acquisitions (M&A’s) due diligence, share allocations, and numerous other functions to determine value.
 
They were a little surprised, perhaps a little astonished, but ultimately over the moon. A few weeks later, we delivered a professional-looking valuation overview, which they then presented to the investor.
 
  As I drove home that afternoon, it dawned on me that clients think all we can do as accountants is payroll, calculate taxes, and write up receipts, but there’s really a lot more to it. The truth is, our work doesn’t end with the tax season and management accounts!
 
  If you have an accountant, it is helpful to know what other services (besides bean counting) they can render.
 
  Here are six value-added services your accountant can offer that may fundamentally change how you run your business and give you a competitive edge!
 
 
1. The Financial Detective: Forensic & Process Audits
 
Of course, you are familiar with annual financial audits, but have you ever considered requesting a forensic or operational process audit? This is where we typically act as a financial detective.
 
  Let’s imagine you suspect internal fraud or theft at your business, you know that gut feel that tells you that somehow your numbers are not adding up? In most cases, business owners are unsure where to look or how to start the process.
 
  Our team can perform a deep, investigative dive into your financial records, transactions, and internal controls to uncover and quantify financial misconduct. Beyond just finding the problem, we help you build a robust legal case and implement preventative controls to ensure it never happens again.
 
  Even without any suspicion of fraud, we can audit your core business processes such as inventory management and stock control, procurement, accounts payable, and so forth, and help you identify inefficiencies, weaknesses, and non-compliance, leading to significant cost savings and streamlined operations.
 
 
2. The Deal Maker: Mergers and Acquisitions Advisor (Buying or Selling)
 
Business transactions involving buying and selling rely heavily on sound legal counsel offered by registered professionals. This may include drafting contracts and gaining a sound understanding of the various legal obligations. Even though this is an essential element, the financial valuation and structuring of the deal are equally important.
 
  You need to determine precisely how much your business is worth before you sign on the dotted line. Business owners also need to consider potential tax implications, especially when assets are bought, sold, or restructured. This has to be done by an accounting and tax professional.
 
  Your accountant should be able to handle the business valuation, determine the most tax-efficient structure for the acquisition or sale, conduct financial due diligence on the target company, and advise on optimal funding structures.
 
  Ensure your accountant is your strategic partner at the negotiation table, so the deal makes solid financial and tax sense from day one. 
 
 
3. The Talent Juggler: Employee Incentives and Benefit Structuring
 
Retaining top talent in a competitive job market requires more than just a good salary; it demands intelligent benefit and remuneration structuring.
 
  While your accountant may run your monthly payroll like a clock, they can also design bespoke and tax-efficient employee incentives and benefit structures.
 
  This goes beyond standard PAYE and UIF and may include advice on setting up employee share schemes (ESOPs), structuring performance-based bonuses, and establishing travel allowances and fringe benefits to maximise employees' net take-home pay while optimising tax deductions for your company.
 
  Allow your accountant to turn your payroll function into a powerful employee retention tool.
 
 
4. The Growth Strategist: Key Performance Indicator (KPI) Benchmarking
 
Monthly management accounts are historical in the sense that they tell you what has already happened. To grow, you need to know how to compare your performance with competitors effectively and which levers to pull in the short term to improve.
 
  You wait for your monthly financials, or, in collaboration with your accountant, take the financial data and draw up key metrics such as gross profit margin, age analysis (debt collection periods), and labour efficiency, and develop industry benchmarking KPI’s and analysis against top-performing peers in the local market. 
 
  Such an analysis can identify where the business is underperforming and provide an actionable roadmap to get better.  This approach effectively turns passive reporting into proactive strategic planning, improving the overall efficiency and profitability of your business.
 
 
5. The Compliance Sheriff: Secretarial Rescue
 
Company Secretarial Services are often relegated to simple annual return filing, but the legal structure of your company is the foundation of your entire business.
 
  Effective secretarial management isn’t simply the filing of annual returns with the Companies and Intellectual Property Commission (CIPC). Many businesses, especially older SMEs, find that their CIPC records are outdated, non-compliant, or messy. This can prevent you from opening bank accounts, getting a BEE certificate, or selling the business.
 
  Your accountant can systematically review your Memorandum of Incorporation (MOI), update all director and shareholder registers, correct historical filing errors, and ensure your corporate documents are impeccable and compliant with the latest Companies Act regulations.
 
  Outdated CIPC data have curtailed many a serious merger and acquisition or expansive funding drive. Talk to your accountant to make sure all your information is correct and up to date.
 
 
6. The Protector of Legacies: Estates & Last Will and Testament
 
While a registered attorney can perform the legal execution of a will, your accountant can focus on the financial, tax, and liquidity planning to ensure your financial legacy is protected and unexpected costs or delays don't burden your beneficiaries.
 
  Your accountant can draft your last will or provide holistic estate and liquidity planning. This isn’t just drawing up a will; it can also include modelling your entire estate's future financial position. This involves calculating the estimated estate duty (tax) and capital gains tax (CGT) payable upon death.
 
  Of crucial importance is that your accountant identifies potential liquidity shortfalls, where your estate lacks readily available cash to cover these taxes and administration costs, forcing the sale of assets like a family home or business shares.
 
  Your accountant can advise on tax-efficient solutions, such as structuring life insurance policies or making strategic asset transfers, to ensure your estate is financially prepared to settle all liabilities smoothly, protecting your assets and your beneficiaries' inheritance.
 
 
Closing Remarks
 
Our mission is to be more than just your compliance provider. We want to be one of your most trusted advisors, ready to tackle the complex financial, operational, and strategic challenges that truly drive your business growth.
 
  Having a sound understanding of some of the less apparent roles we play can make a difference in how you decide the future of your business.
 
  The title of this article is a play on the inauguration speech of President John F. Kennedy when he said, "ask not what your country can do for you, ask what you can do for your country."
 
  In the same vein, if you’ve been tackling business challenges alone, this article invites you to consider that the solution may already be within our service offering, and that we want to be of service to you.
 
  If you are keen to discover the full scope of support we can offer your business, please contact us for a strategic, no-obligation consultation to review your current challenges.
 
  We may have a tailor-made solution just for you!
 
 
 
 
 
Contact us at +27 82 561 7024 or myrtleo@mbasa.org for a free, no-obligation consultation, and let’s ensure you are on the right track from day one.

Since the democratic elections and consequent changes in South Africa, from 1994 onwards, we have gradually become an active participant in the greater global scheme of things.
 
The past 30 years have seen the world become increasingly integrated through the power of technologies such as the internet, smartphones, and the ever-growing influence of social media.
 
In light of these changes, many new career and work opportunities have emerged.  An attractive exchange rate, abundant creative talent, and a strong work ethic have seen South Africans become highly sought-after employees and business partners.
 
It was one of these opportunities, offered to a close family member, that first brought questions about tax liability and tax residency to my attention.
 
As an investment destination, South Africa offers attractive markets and opportunities, and I have seen a significant increase in the number of foreign tax-related inquiries from international clients over the past ten years.
 
The purpose of this month’s article is thus to provide our readers with a few essential details on exactly how tax liabilities are affected when living or earning abroad.
 
If you are, or planning to, work outside the country, this piece is for you. I hope you find it helpful and enjoy reading it as much as I enjoyed breaking it down into meaningful portions.
 
Let’s begin by asking a pressing question…
 
 
If I live abroad - do I have to pay taxes in South Africa?
 
As many families consider the allure of starting a new life in another country or working overseas for several years, the question of tax residency and tax liabilities inevitably comes up in conversation.
 
South Africa has a complex tax system, and each case requires careful consideration and analysis. In short, the safest answer is: it depends, as the old legal adage goes. It depends on your tax residency status.
 
Your tax residency can only be one of two, namely that of a resident or a non-resident.
 
If you are a resident, it means you are liable to pay tax on your worldwide income, regardless of where you live. You are further required to file a tax return (even if you have no income in South Africa), declare your worldwide income (including foreign employment income), and pay expat taxes (subject to the applicable tax treaties).
 
If you are a non-resident, it means you are only liable to pay tax on your South African-sourced income.
 
It is clear what the next logical question ought to be then…
 
 
How is tax residency determined exactly?
 
While it may be complex to determine, it all comes down, broadly speaking, to your physical location, where you consider your home to be, and how you generate your earnings and other economic interests.
 
The criteria, or tests, to determine your tax residency are based on the following:
 
Physical presence test - the number of days you spend in South Africa in a tax year.
 
Ordinary residence test - your family, home, and other personal belongings in South Africa, as well as your intention to return.
 
Economic ties - your employment, business interests, and investments in South Africa.
 
SARS uses the ordinary residence or physical presence test to establish your tax residency. Whatever the outcome of these tests will determine your tax liability.
  
 
I work abroad - what is my tax liability in this situation?
 
Once it has been determined that you are a tax resident, you are expected to pay tax on your worldwide income, regardless of where it is earned. This is known as ‘expat tax’.
 
As a South African working overseas, you are considered a “tax resident temporarily abroad” until you cease your tax residency officially by completing the RAV01 form through the SARS e-filing platform.
 
South Africa also has Double Taxation Agreements (DTAs) with many countries to prevent double taxation. If you live and work in a country with a DTA agreement with South Africa, you qualify for relief from double taxation.
 
There is also SARS foreign income exemption for South African tax residents living abroad, but it is subject to certain conditions and limitations.
 
 
Do I have a tax liability on income earned from foreign employment?
 
Yes, if you are still considered a South African tax resident. No, you do not have to pay tax on your foreign income if you have been confirmed a non-resident by SARS.
 
As mentioned earlier, South African residents are taxed on their worldwide income, which includes income derived from foreign employment.
 
However, you may be eligible for a foreign tax credit to reduce your South African tax liability. Taxes on foreign employment income in South Africa depend on several factors, including:
 
Residency status - whether you’re a South African resident or non-resident.
 
Foreign tax credit - if you’ve already paid foreign taxes on your income.
 
Exemptions - if you qualify for any exemptions under the Income Tax Act, such as those provided by sections 10(1)(o)(i) and 10(1)(o)(ii).
 
 
Can I reduce my tax liabilities on my worldwide income?
 
There is no legal way to avoid paying tax on your worldwide income if you are considered a tax resident, as discussed above. Still, there are legal ways available to you to reduce your tax liabilities. Here are some
 
Change your tax residency - if you can establish residency in another country with more favourable tax laws, you can reduce your overall tax burden. However, ceasing your tax residency in South Africa can be a complex process and requires careful planning.
 
Take advantage of tax exemptions and deductions - South Africa offers several tax exemptions and deductions for individuals working abroad. These include the foreign income exemption, which allows you to exclude up to R1.25 million of your foreign income from your taxable income.
 
Load up on tax-efficient investment vehicles - several tax-efficient investment vehicles, such as retirement annuities and tax-free savings accounts, can help you reduce your overall tax liability.
 
These strategies will depend on the length of time you spend in South Africa each year, your family and business ties, and the amount of your income earned in South Africa.
 
By understanding the tax implications of working abroad as a South African and taking advantage of the available tax breaks, you can minimize your expat tax liability and maximize your after-tax income.
 
 
What are some of the benefits of being a non-tax resident?
 
Your tax residency is only considered completed once SARS has confirmed this in writing by issuing a non-resident confirmation letter.
 
Non-tax residency encompasses the following benefits:
 
No more South African taxes - you don’t have to pay taxes to SARS on your global income.
 
Simplified tax returns - you don’t need to file annual tax returns in South Africa unless you still earn an income here.
 
Easier money transfers - the letter can help streamline international money transfers.
 
Early retirement fund withdrawals - becoming a non-resident offers you the opportunity to cash in your retirement annuity before the age of 55 (although I strongly advise that you do this within the scope of a well-developed retirement strategy and plan).
 
 
Closing Remarks
 
In this article, I have decided to take a broader, principle-based approach to taxation on foreign income and related topics, rather than attempting to address every single eventuality and situation.
 
The main reason I did this is that taxation in SA is a truly complicated matter, and maintaining tax compliance across two geographical jurisdictions is even more so.
 
Given the complexity of our own and international tax laws, I strongly recommend consulting a qualified and registered tax practitioner before making significant financial, employment, or immigration decisions.
 
Doing so without due consultation will inevitably lead to unnecessary tax liabilities or, even worse, severe penalties. You may need a one-on-one consultation with us to propose the best tax planning strategy for you moving forward.
 
Earning from foreign sources can be highly beneficial and financially rewarding over the long term, but make the effort to familiarise yourself with the correct information and advice. Cross-border taxation, legal compliance, and liabilities can be a genuine minefield if not handled correctly.
 
Contact us at +27 82 561 7024 or myrtleo@mbasa.org for a free, no-obligation consultation, and let’s ensure you are on the right track from day one.

Every year, usually around the time when it seems Capetonians have just about had enough of the never-ending Cape winter, I start noticing small telltale signs of the impact on my clients of running their businesses.
 
The ongoing pressure of paying taxes, managing sales, dealing with cash flow shortages, non-paying clients, employee challenges, and the struggling economy are all ever-present forces to reckon with.
 
Since we are all inundated with an overwhelming quantity of posts, articles, and short-form social media content on mental health, it’s kind of lost its true meaning for me. However, at a certain point, I have to admit, I also start to feel the physical and psychological effects of running my own business in these complicated times.
 
In this month’s article, I focus on five key stressors, their impact on our mental faculties, and how we can potentially remedy the effects on our decision-making abilities.
 
 
The Burden of Sole Responsibility and the Myth of "The Grind"
 
The Stressor:

Unlike employees, the business owner is never really “off”. Every problem, crisis, major decision, failure, and the livelihood of all the employees rests squarely on the shoulders of the owner.
 
This creates a relentless cognitive load that leads to significant personal stress. There exists a cultural myth that successful business owners must constantly be "on the grind", which exacerbates the situation.
 
The Impact on Your Mental Health:
 
Chronic anxiety and overwhelming feelings of isolation. The feeling that you can't share your concerns and worries because it might erode confidence in the business or your leadership worsens the feeling of being isolated, and that it’s “lonely at the top."
 
 
The Practical Takeaway:
 
Implement a personal "Responsibility Firewall": a mandatory, non-negotiable hour of disconnection each day. It is also essential to develop a trusted, non-employee peer group to share your feelings and fears, and to reflect on your current situation.
 
 
 
 
 
The Financial Rollercoaster and Its Impact on Self-Worth
 
The Stressor:
 
In a small business, the owner's personal finances are often deeply intertwined with the business's cash flow. A slow month isn't just a number; it's a threat to the mortgage, your children's tuition, and may even impact day-to-day necessities such as groceries and fuel.
 
The Impact on Your Mental Health:
 
Intense, episodic stress and a dangerous blurring of personal and professional self-worth. When the business struggles, it’s so tempting to feel like you are a failure, a feeling that further leads to symptoms of depression and burnout.
 
The Practical Takeaway:
 
Create a financial structure that underscores the importance of professional financial separation. Work with your finance team (or accountant) to create a 12-month "Owner's Salary" budget (even if just aspirational as a start).
 
Set up and track financial Key Performance Indicators (KPIs) separate from your personal feelings, and maintain emotional distance from the economic and monetary fluctuations.
 
 
Imposter Syndrome and the Pressure to Be the Expert
 
The Stressor:
 
Many business owners are experts in their core business field (e.g., baking, coding, landscaping). Still, they may feel inadequate when forced to wear other C-suite hats, such as "CEO," "HR Manager," and "Marketing Director." A feeling of having to constantly "fake it until you make it” becomes the order of the day.
 
The Impact on Your Mental Health:
 
Trying to be everything to everyone all the time is often a mask for anxiety and leads to crippling procrastination and the inability to delegate. It also fuels the constant internal voice questioning one's competence (also known as imposter syndrome).
 
The Practical Takeaway:
 
Start seeing delegation and outsourcing not as failures, but as essential and strategic business strengths. Challenge yourself to auditing your own time and commit to outsourcing at least two tasks that drain you the most (for example, bookkeeping, payroll, social media posts, blogging, marketing).
 
 
Always on Tap and the Breakdown of Boundaries
 
The Stressor:
 
The smartphone, along with numerous other technologies and platforms, has eliminated the physical boundary between "work" and "home." Clients, employees, and “urgent” problems can reach us 24/7, normalizing the idea of checking email late at night or taking calls during the weekends.
 
The Impact on Your Mental Health:
 
We get caught in a chronic state of sleep deprivation and low-level hyperarousal (the so-called "fight-or-flight" response), which exhausts the nervous system and makes even minor setbacks feel catastrophic. This leads to burnout, the total depletion of physical and mental energy and resources.
 
 
The Practical Takeaway:
 
Implement concrete strategies for setting digital boundaries, such as using separate devices or "work profiles," disabling notifications for work apps after a specific hour, and scheduling mandatory "recovery blocks" into the weekly calendar that are treated as seriously as client meetings.
 
 
The Need for Professional Help and Structured Empathy
 
The Stressor:
 
Many business owners believe that seeking mental health support is a sign of weakness or a luxury they can't afford, fearing it will scar their image as a strong leader, problem solver, and prolific worker.
 
The Impact on Your Mental Health:
 
The problem gets bigger as it remains untreated and undetected. When a problem affects your business (e.g., legal or accounting), you call an expert.
 
When a problem affects your mind, failing to apply the same logic can lead to worsening symptoms. And many business owners only realize too late that they should have seen the warning signs earlier.
 
The Practical Takeaway:
 
It’s completely ok to seek professional help. Begin by reframing therapy, coaching, or counseling as a vital business expense that supports your most critical asset as an owner: your decision-making abilities.
 
Start by making a list of low-cost resources (for example, local small business meetings, mental health support groups) and share this list with all your employees and teams.
 
Take the lead in advocating for sound mental health and help reduce the stigma associated with seeking help. Be open with employees and teams about prioritizing self-care.
 
 
Closing Remarks
 
Ultimately, the relentless demands of ownership and our modern lifestyles mean we are confronted with a choice. Either we acknowledge the genuine mental strain of running our businesses and take the necessary remedial actions proactively, or we can delay resolving it and pay a hefty price in the end.
 
The truth is, postponing this essential work doesn't make the stress disappear; it simply ensures the mental debt continues to grow. Every time you set aside the need for a boundary, ignore the creeping anxiety, or refuse to delegate due to perfectionism, you are taking out a loan against your future well-being and your business’s stability.
 
We all know that sound financial management begins with an honest assessment of the numbers. Similarly, effective mental health management begins with an honest self-assessment. Until we can honestly admit to ourselves and to a trusted professional that we are struggling, we cannot apply the strategic, decisive leadership we use every day to solve business problems.
 
Our minds remain our most valuable asset. Let’s treat it as such and budget appropriately for its protection and scheduled maintenance. Let's make the critical decision today to stop postponing the most important thing we will ever do for our business.
 
Contact us at +27 82 561 7024 or myrtleo@mbasa.org for a free, no-obligation consultation, and let’s ensure you are on the right track from day one.

This is part 2 of a two-part series of blog articles I developed and wrote, specifically aimed at the small business owner, to unpack the essential characteristics that one needs in today’s volatile marketplace to succeed and become profitable.

  My main goal was to focus on how we should approach our businesses (Part 1 of 2), and, the kind of concrete actions and behaviors we need to do more of (Part 2 of 2) to ensure we drive operations, boost income, secure cash flow, increase sales, and navigate the tax landscape with confidence.

  This then the second part, and I do hope you leave this article feeling inspired anew to take on the challenge of owning and operating a small to medium enterprise within the South African landscape.

  May you indeed be inspired!
Strategic  Leverage of Digital Assets

We have to realize that we cannot survive in a digital media by just existing online. A website and social media accounts are not enough; we have to move towards a more strategic approach and be more efficient in our efforts by using the right tools and techniques.

  Ad spend must be directed to reaching our ideal customer within a specific geographic area. Go into campaigns with compelling offers, even if that means taking lower margins. Forget about vanity metrics, and track conversions and ROI. Know what the size of the bangs is you are getting for your buck.

  Make sure to keep a close eye on your brand’s visibility by ensuring you meet the local search engine optimization (SEO) criteria. At the very least, you want your business to pop up in the search results for your area.

  Do not lose track of your current and regular customers. Utilise tools such as email marketing, newsletters, discount vouchers, and  WA Business to re-engage past customers or to announce promotions. If your customers supported you before and you offer an excellent service or product at a reasonable price, chances are they will buy from you again.

  Make sure you can sell and market online; this opens up a 24/7 revenue stream. This approach expands your marketing reach, reduces cost per lead, improves customer engagement, and drives direct sales.


Proactive Cash Flow Management

Active and engaged financial management begins with being in charge of every cent that goes in and out of your business. 


Accelerate payment and collection by invoicing immediately, follow up rigorously, and offer multiple convenient payment options (EFT, online payments, mobile payments).

  To provide you with greater cash flow reach, make sure you regularly negotiate favourable payment terms with your suppliers. Negotiate longer payment terms with suppliers, but try to keep customers’ terms shorter, not because you are mean, but because every day counts!

  Take a ruthless approach to cut unnecessary expenses. Review all monthly subscriptions, operational costs, and energy usage. See if paying cash may save you unnecessary interest.

  Build a reasonable cash reserve. Even a small money buffer can prevent panicked decisions during lean periods or cash flow shortages. The rule of thumb is to build a reserve that will allow you to continue operating for three months without any income. This may take a while to generate, but the peace of mind it can create has saved many a company before.


Refining Your Value Proposition & Upselling

It is critical to evaluate and articulate why customers should choose your business and then to offer them even more. Too little is being done to position customers at the centre of all operations and decision-making.

  Are you clear in your communication, marketing, and messaging about the exact problem your products and services solve for your customers?

  What exactly makes you genuinely different and better than your competitors? Price is a race to the bottom. Focus on unique benefits and consistently differentiate yourself from the competition. This is a lot harder to do than most companies think. Be good at telling your customers how you are different and why it matters.


  Teach every member of staff how to become a master upseller! Once a customer is satisfied or blown away by your unique product or service, ask how you can offer them complementary products/services that genuinely add value and increase their lifetime value to your business even more.

  An increase in the average transaction value will boost repeat business, strengthen customer loyalty, and directly impact overall revenue, allowing you to offer a wide range of new services and products to your customers.


Collaboration is the New Networking

Look beyond your immediate circle for growth and start by engaging with local business forums such as local chambers of commerce or industry-specific associations. These are incredible sources of leads, partnerships, and shared knowledge.

  Try to seek out complementary partnerships specifically. Can you partner with a non-competing business to offer joint services or cross-promote? For example, a bakery and a coffee shop, or an IT consultant and a web designer.

  Leverage the experience of others, or share your own, to build valuable relationships. This can take the form of several mentorship sessions or a few presentations to a group of young business owners, upcoming entrepreneurs, or colleagues in the same industry.

  Don’t be afraid to reach out and share your experiences. Take pictures, share them in your social media accounts. Expand your reach, tag other professionals for engagement, and open up conversations. These actions generate referrals and provide meaningful learning opportunities. 

  This kind of focused and sincere collaboration, combined with an openness to share skills, knowledge, and experiences, opens doors to new markets without massive marketing spend.

Stay Ahead with Regulations and Tax Compliance

An essential first step to stay ahead of SARS and other regulatory bodies is to engage with a registered accountant, preferably also a registered tax practitioner. One of the main tasks of your accountant is to ensure you are compliant, to identify legitimate deductions, and to plan for tax obligations.

  Another critical step is to make sure you understand the basics of all key legislation related to, for example, POPI, B-BBEE, VAT, and Income Tax, to name a few.

  Embrace new technologies and utilize digital tools such as cloud accounting software and document management systems, improving accuracy and reducing time spent on recordkeeping and accounting.

  Like your cash reserve, make sure you set aside your tax provisions. Don't fall behind on any payments due to SARS. Budget for your tax obligations throughout the year and make the payment when they need to be made.

  Avoid crippling tax penalties for late or non-payment, like the plague! It frees up your time and ensures your financial house is in a position for sustainable growth, making sure you can sleep at night and know your business is in sound financial hands.


Closing Remarks

As I bring this blog series to a close, I am reminded of an important story told to me by a close friend. 

  At the time, she was working as a property sales executive in an open-plan sales office. One Monday, after a dismal attendance at her show house over the weekend, her boss and sales manager called her to his office.

  He asked her how she was, and she, quite emotional, explained her frustration of not having collected one potential buyer’s details, and she was thinking of quitting.

  Her boss, after listening to her outburst and frustrations, told her that it was impossible, almost a mathematical certainty, for her to work that hard, week after week, and not to be successful. 

  And he was right, two years later she was crowned as the top sales executive in the group and has continued a marvelous career. You see, I think it’s like that with all of us at some point in our business. We work, we struggle, we take chances, we put in the hours, but without success.

  Agreed, that can genuinely be disheartening, but this is where we also need to believe in the total of all our small, sometimes insignificant actions and the knock-on effect of all those small steps.

  My message to you then: Just keep on working every day, be loyal to your clients and your income, be kind to your staff and clients, and you will see your empire rise. Of that I am most sure of.

  Be brave. Be bold. Be your best!




For any assistance with critical business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.

A review of my blog page topics will quickly give you an accurate indication of my obsession and passion for the lonesome entrepreneur. Waging war on the daily challenges and forging ahead to establish a business and a brand with all kinds of interesting products and services.

  Owning and operating a Small to Medium-Sized Enterprise (SME) is challenging enough; doing so while also generating a profit is rare indeed. In our practice, we encounter businesses across the entire spectrum, ranging from those in desperate need to those that are failing, as well as those that are successful.

  We decided to create a two-part blog series about the traits and tactics needed to run a profitable business in South Africa. A sincere dedication to these warriors we call entrepreneurs! 

  Let's be brutally honest. Running an SME in South Africa isn't for the faint of heart. Owners must juggle a multitude of responsibilities, including sales targets, managing cash flow crises, navigating ever-changing regulations, and competing with intense competition. A one-size-fits-all approach won't work. 

  To not just survive but truly thrive and build a financially resilient business in 2025, you need a sharp edge, and it requires a fundamental shift in one’s thinking and daily operations. 

  In this two-part series, we break down the essential characteristics you need and the concrete actions you must take to boost your income, secure your cash flow, drive sales, and navigate the tax landscape with confidence.

  Think of these as your personal and professional toolkit. Without these, even the best strategies will falter.

  Strap in as they say…


Hyper-Focused Agility & Adaptability

The South African market is dynamic – characterized by load shedding, economic shifts, and policy changes. Successful SMEs don't just react; they anticipate and pivot rapidly. 

  It isn't about changing your core business every week, but about quickly adjusting strategies, service delivery, or even product lines to market demands and unforeseen challenges.
   
  It is a crucial matter, as stagnation means death. The ability to quickly test new ideas, discard what isn't working, and adapt to change keeps you competitive and resilient in the face of market shocks.


Radical Customer-Centricity 

It's no longer enough to offer a good product or service. You need to have a deep understanding of your customers' evolving needs, pain points, and desires. 

  This matter involves proactive feedback loops, personalised communication, and building genuine relationships that foster loyalty. This means taking a genuine interest in your customers and why they support your brand.

  The primary reason behind this critical approach is straightforward: repeat business and word-of-mouth referrals are the lifeblood of SME cash flow.

  In a competitive market, an exceptional customer experience is your strongest differentiator and remains your most effective marketing tool.


Data-Driven Decision Making

Gone are the days of the good old “gut-feel”. Businesses must move beyond mere feelings. 

  Innovative and successful SMEs collect and analyze data, which may include sales trends, customer behavior, marketing campaign performance, and operational costs. 

  While it may sound technical, it doesn't require fancy software; it can begin with simple spreadsheets and cloud-based accounting insights.

  Every decision, from pricing and inventory management to marketing spend and hiring, impacts your financial viability. 

  Data removes guesswork, allowing you to identify what truly drives sales and profitability, as well as where your money is leaking.


Financial Literacy & Discipline - Cash Flow's Best Friend

You require a deep understanding of your profit and loss statement, balance sheet, and, critically, your cash flow. Proactive budgeting, meticulous expense tracking, timely invoicing, and disciplined debt collection have become must-haves.

  Cash flow problems are the leading cause of death for more SMEs than any other factor. 

  Mastery of your finances enables you to make informed investment decisions, manage liquidity crises effectively, and accurately forecast your ability to meet obligations and capitalize on opportunities.


Resourcefulness & Creative Problem-Solving

Become the ultimate "plan B" generator. Load shedding? How can you maintain operations? Supplier issues? Who are your backups? Economic downturn? What innovative solutions can you offer? 

  Learn how to see obstacles as challenges to be creatively overcome, often (perhaps always) with limited resources.

  The South African business landscape is riddled with curveballs. Your ability to find creative solutions to immediate problems directly impacts operational continuity, preventing minor issues from snowballing into financial disasters.

  Tap into your inner beast mode, as they say!



CONCLUSION

The landscape for SMEs remains challenging, but it's also ripe with opportunity for those who are innovative, agile, and proactive. 

  It's not always about working harder, but working smarter. 

  By embodying these characteristics and consistently implementing these actions, you'll not only secure your business's viability but truly position it for competitive growth and increased profitability. 

  Stop surviving, start thriving!



For any assistance with critical business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.

Someone asked me a thought-provoking question a few weeks ago: “If you could give only one piece of advice to anyone starting out in business today, what would it be”?

  Naturally, I had to think about this for a moment as quite a lot of meaningful things came to mind. Considering I was only permitted a single piece of advice, I answered as follows: “Just pay your taxes!”. 

  The person looked perplexed. 

  Let me explain, I said…


YOU WILL NEVER CATCH UP

If you don’t pay your taxes, you are going to get caught out at some point; it’s as simple as that. And once those unpaid taxes start snowballing, catching up will be costly and highly stressful. 

  Trust me when I say this - you can never get the time back, and unpaid taxes leave you in a wake of a cash flow nightmare, which just gets worse once penalties start rolling in.

  To pay your taxes, your business needs to operate according to specific financial principles, and this requires a decision from you, from the start, not to run after shortcuts or even worse, trying to outplay the system.

  Pay your taxes, but use professionals to help you.


USE PROFESSIONALS - ALWAYS!

Regular readers of my blogs will know that I am a stickler for using the right professionals when you require specialized (financial, legal, property, healthcare, etc) advice.

  Your old varsity buddy might have been the life of the dorm back in the day, but might not be the best when making life-changing business decisions!

  Pay professionals to give you the right advice. Find yourself a registered tax practitioner, and discuss the optimal tax structure for your business with someone who knows the tax laws.

  The same applies to other areas, such as funding, accounting, and legal issues. It pays to pay!


IGNORANCE IS NOT AN EXCUSE

It doesn’t matter how you turn the tables; in the end, all accountability in your business stops with you. You remain responsible for all aspects of your business, and while you can claim ignorance as to who the 12th president of the United States was, you can’t say the same for your business.

  It’s your job to know, and it can never be passed down to someone else, even if they are the MD or CEO.

  As long as your name appears at the top or the bottom of the letterhead, you have no excuses and you are accountable. 

  Make sure you know what’s going on in your business at all times!


YOU HAVE RIGHTS, BUT IT’S YOUR JOB TO KNOW THEM

It is of utmost importance that you know what you are permitted to do. I am not just referring to finances and taxes; I also mean in the broader sense of the word.  Specifically, your rights and obligations that are required within your sector or type of business.

  For example, let’s say you are a plumber. Your consumers will expect, at the very least, that you know what the local laws and bylaws state about drainage pipe sizes or geyser installations. 

  Similarly, as a business owner, you have certain legal and financial obligations, such as paying income tax. While you may not know all the different calculations and concessions, you should know, at the very least, what income tax is and that it is payable.

  Of course, no one expects you to know it all, but that’s no excuse for not knowing your rights, even if it's just high-level rights for a start.


DO THINGS RIGHT - FROM THE START

It’s tempting to be baited into believing stories of fantastical tax reductions, all while paying lower fees. My advice? Beware the charlatans among us!

  If you have a successful business and you have a high turnover, you will be paying significantly higher amounts of tax. All the more reason to set your business up in the right, most optimal way. This requires knowledge of our tax and commerce laws, professional experience, and most importantly, accountability towards a profession.

  The allure of tax savings is usually not worth the pain in the long run. Just do the right thing from the start - it's so much easier, so much less complicated, and you will sleep a whole lot better at night. 

  This is a crucial point to keep in mind.


IN CLOSING

If you’ve read this far, I'm guessing I've made a few points that resonated with you. 

  The main reason I wanted to write this article was that I have an extraordinary compassion for the lone business owner. This entrepreneur fights to stay alive, pay bills, pay staff, and try to prosper each day.

  All of my points above come down to an important point, which is this: Unlike Cher’s 1989 hit, we can’t turn back time!

  If you’ve been in business for several years and end up with a severe tax backlog because you thought you'd catch up later, I'm here to tell you, you won’t.

  Time passed, like revenue, is time gone. It’s just best to do the right thing in your business, from the start.

  It takes a long time to become good at what you do in your business. It takes years of working your way through some rugged terrain and many unforeseen troubles. And many companies perish along the way.

  If you can manage to keep going and stay afloat, please don’t throw away all that hard work!


For any assistance with critical business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.

Most business enterprises will, at some point, find it necessary to provide documented proof of their financial health and adherence to accounting standards and practices during their lifecycle.

  These different financial assurance formats are used for various purposes, including funding, shareholding, compliance, investment, due diligence, mergers and acquisitions, and insurance, to mention a few. 

  There are three main types (levels) of assurance activities:

* Financial Compilation.
* Independent Review.
* Audited Financial Statements.

  Each one of them serves a distinct purpose and is significant for various stakeholders, depending on their needs for reliability and transparency. Let’s take a closer look at what each type of format entails:



1. Compilation of Financial Statements

A compilation involves an accountant preparing or assembling a company's financial statements based on information provided by management.

  What are the benefits of a compilation of Financial Statements?

* Cost-Effective: It's the least expensive option as the accountant performs no auditing procedures or provides assurance on the accuracy of the information.

* Basic Financial Reporting: It is suitable for small businesses or startups that need formally prepared financial statements for internal use, basic external requirements (like demonstrating financial responsibility to suppliers or potential customers), or obtaining small loans where a high level of assurance isn't required.

* Meeting Basic Requirements: It helps companies without an in-house accountant meet legal or reporting requirements for presenting financial information in a structured format.

* No Assurance: The compilation report clarifies that the financial statements are management's representation and the accountant offers no opinion or assurance on their accuracy.


2. Independent Review of Financial Statements

An independent review provides limited assurance on the financial statements, meaning the reviewer performs procedures to determine if any material modifications are needed for the statements to conform with the applicable financial reporting framework.

  What are the benefits of an Independent Review of Financial Statements?

* Limited Assurance: It offers a step up from a compilation, providing more credibility than a compilation but less than an audit. The reviewer focuses on inquiries and analytical procedures to identify any unusual trends or discrepancies.

* Cost-Benefit Balance: It's generally less expensive and time-consuming than an audit, making it a good middle-ground option for businesses that need more assurance than a compilation but don't require a full audit.

* Increased Stakeholder Confidence: A review can increase confidence among potential investors, creditors, and other financial partners who need a reasonable level of assurance regarding the company's financial health.

* Error Detection: While not as extensive as an audit, a review can still uncover mistakes or inconsistencies that might have gone unnoticed internally.

* Regulatory Compliance: Certain regulations or financial institutions may require an independent review, particularly for privately held companies that need to demonstrate a reasonable level of financial accuracy without the full expense of an audit.


3. Audited Financial Statements

An audit provides the highest level of assurance that financial statements are presented fairly, in all material respects, under the applicable financial reporting framework (e.g., GAAP or IFRS). An independent auditor expresses an opinion on the financial statements.

  What are the benefits of Audited Financial Statements?

* Highest Level of Assurance: An audit involves extensive verification, testing, and evaluation of a company's financial records and internal controls. This provides a high degree of confidence in the accuracy and reliability of the financial statements.

* Enhanced Credibility and Trust: Audited financial statements carry significant credibility with a wide range of stakeholders, including investors, lenders, regulators, and the general public. This is crucial for attracting investment, securing large loans, and maintaining public trust.

* Fraud and Error Detection: Auditors are trained to identify errors, irregularities, and potential fraudulent activities, significantly reducing the risk of financial misstatements.

* Compliance with Standards and Regulations: Audits ensure that financial statements comply with relevant accounting standards and regulatory requirements, which are often mandatory for public companies or those seeking significant financing.

* Improved Internal Controls: The audit process often involves an assessment of a company's internal controls, leading to recommendations for improvements that can enhance efficiency and reduce financial risk.

* Support for Strategic Decisions: Reliable financial statements provide a strong foundation for management to make informed strategic decisions, assess performance, and plan for the future.


CLOSING REMARKS

The choice between a compilation, independent review, or audited financial statements depends to a great extent on the specific needs of the business, its size and complexity, regulatory requirements, and the level of assurance required by its stakeholders.

  These assurances will, in turn, depend on the nature of what the business enterprise is trying to achieve. A funding request will require different levels of assurance than a merger and acquisition, for example.

  Sound financials are a critical first step in the ongoing existence and growth of a business. Business owners will benefit immensely from instilling good financial housekeeping as part of the management and accountability ethos of their enterprise, a topic I wrote about in last month’s blog article (see point no 7).



For any assistance with important business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.

As a practice with registered tax practitioners and accountants, one of our key financial responsibilities is that we interact with the South African Revenue Service (SARS) on behalf of our clients. The spectrum of interactions with SARS officials and their digital platform, can range from standard and simple tax submissions, to more complex queries and may even include appeals. We perform these duties on an ongoing basis, and our clients are just too happy to know they don’t have to deal with SARS in person.
 
  As practitioners we are fortunate to understand the lay of the tax landscape, the applicable legislation, the procedures and processes, and we have our own dedicated practitioner’s line to make appointments. But SARS, like all state departments, also have their own unique set of challenges, whether it’s a system that goes off-line or a dropped telephone call as you are about to begin to talk. These challenges remain ever present as always, which is why the main benefit for our clients is that we know how best to resolve problems, efficiently and timeously.
 
  In spite of this, we inevitably deal with clients and companies that prefer to deal with SARS directly. There is no law against this of course, and we spend many hours in a week to try and assist clients who want to go at it on their own. What happens in many cases is that clients realize, too late, that an issue is more complex than they initially anticipated.
 
  This made me think about the different pitfalls when dealing with SARS, and how it can truly be a challenge to everyone sometimes.
 
  To assist our clients and numerous others out there, we decided to put together this list of 10 important tips to keep in mind when dealing with SARS:
 
 
1.         It’s all About the Due Dates
 
Adhere to submission dates – at all times, if you don’t you run into severe penalties and other additional payments. All the necessary submission dates are available on SARS’s website. It is also essential that you keep a record of all the follow-up communication and any further information that may be requested by SARS. Adhere to all due dates – I cannot stress this enough!
 
 
2.         The Proof’s in the Pudding
 
It is essential that you keep a comprehensive record of all your submissions to SARS on file and make sure your financial team knows where to get hold of this. This is extremely helpful in case of any current or future queries and disputes. Keep in mind that the burden of proof for submissions always resides with the taxpayer.
 
 
3.         Nothing Quite Say’s Support Like Support Docs
 
Whenever you have a planned meeting or if you phone to address an issue or follow up on any queries, make sure to have all your support documents ready and in front of you. This ensures a smoother process and reduces your time spent along the way.
 
 
4.         Patience is a virtue
 
Like Poker, you lose when you let your ego take over! Remain calm and courteous, even when you feel like losing it – just don’t. It’s a process that is taking place within one large organisation, and the people within SARS can only do what they can with the resources they have at their disposal. On a personal level, don’t phone SARS if you’re having a bad day at the office.
 
 
5.         SARS Hereby Finds You…
 
Always keep in mind that SARS, like any organisation, business and government department has to adhere to the laws of the land. While our tax laws are complicated, they do make provisions for review processes. You could potentially take a matter for review as far as to the Office of the Tax Ombud, but it is a highly prescriptive process with very specific steps and timelines. Before you even think about any such actions, we highly recommend that you obtain a professional opinion from your tax practitioner on your case.
 
 
6.         Know Thy Rights
 
It is important that you always know your rights and that you have a basic understanding of the tax laws and governing legislation. Keep in mind these laws change and often certain rights might fall away, or certain concessions are awarded to taxpayers. Keep in mind that this is often one of the main reasons why having a tax practitioner can be so beneficial. Tax practitioners have to undergo Continuous Professional Development (CPD) training to ensure they are up to date with the latest rules, regulations and acts.
 
 
7.         Create a Culture of Good Housekeeping
 
It is in your best financial and legal interest to create a culture of good housekeeping where it pertains to admin, invoicing, accounts management, debtors, creditors etc. Teach your teams and set up your business in such a way that finding, filing and keeping record of all thing admin is easy, effective and practical. With cloud-based services and smartphones on hand, there should be no excuse to ensure your entire business is effectively run and that records are accurate and complete. If you run your business this way, dealing with SARS will become easier than you think.
 
 
8.         Share the Right Information
 
Many of our clients make use of multiple tax practitioners, either to separate their personal income and activities from their business activities, or they simply have multiple tax practitioners performing different tasks across their businesses. What is of critical importance is that the various profile information sets shared between these tax practitioners is correct and corresponds with each other. Note that SARS also checks this information, so making sure you update these profiles if anything changes is equally important. Nothing complicates submissions quite like variances of the same information between different practitioners or submissions.
 
 
9.         E-Profiles and Timelines
 
Don’t transfer your e-filing profiles on short notice, or close to due submission dates. Any delays in the transfer of the profile will inevitably lead to late payments and penalties. Allow sufficient time for an e-file profile transfer, I would suggest no less than two weeks.
 
 
10.       What’s in a name?
 
This is an important point if you plan to register your business for income tax. When registering the business, please make sure that the person you indicate in the registration process as the “tax representative” is also registered with SARS, otherwise this will cause countless delays, and there is no easy fix for this. This is one aspect you have to get right from the word go, and it will save you a ton of frustration.
 
 
FINAL THOUGHTS
 
I know this article comes across as almost being preachy, but I can assure you that practically all these points will save you a lot of time, effort and frustration along the way.
 
  SARS is a large organisation with many complexities which requires comprehensive humanitarian, technological and financial resources to manage. It comes as no surprise that practically every action and step within the tax management process is a highly regimented affair and leaves very little margin for alternative options. As a consequence, and in many cases, it’s a case of SARS’s way or the highway.
 
  One sure way to get things done is to appoint a registered tax practitioner to manage this function on your behalf. This will ensure that you are not excluded from the process and ensure you take the right actions. Assuming your practitioner knows their stuff, it will be money well-spent. If you decide to go at it on your own, remain calm, stay focused and breathe deep.
 
  May the force indeed be with you…!
 
 
For any assistance with important business decisions, tax queries, analyzing your financial data, or for any accounting related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024.
 
You can also send us an email at myrtleo@mbasa.org for more information.

I am not really a very sentimental person if I have to be honest. In accounting and accounting related work, that is best left outside the door. I leave romance and emotions to the novelists and poets – when it comes to finance, numbers and taxes, precision and objectivity is key.
 
  But for those who know me, you know there is going to be a but somewhere in these sentences, and you would be right. I only allow myself a few sentimental moments in any given financial year that is. But here’s what happened; I was going through my client database and reviewing some of the early developments when I started out my career back in 2003.
 
  While I found the information I was looking for, I was quite caught off guard to see a few familiar names on that 2003 client list. I was surprised to see a number of clients still with us after all these years. Let me just be clear that I am not looking for “brownie points”, I just found myself thinking back to those early start-up years and how exceptionally tough it was to find and secure new clients. Even the ones that started out with me, were actually taking a chance on a newbie! Something I have always been grateful for.
 
But, and this is the sentimental part, it got me thinking about what makes for a strong long-term relationship in business. I certainly wasn’t always popular, especially when clients had to settle tax payments, and I’ve also made my fair share of honest mistakes along the way.
 
  What are the necessary ingredients that build sound client-accountant relationships? Here’s what I believe one has to keep in mind, after having successfully maintained some relationships dating back to more than 20 years…
 
 
1.         Owning and Running a Business is Stressful
 
Running a business, whether it's a one-person startup or a large-scale operation, comes with its fair share of stress. Between managing employees, keeping track of inventory, and meeting deadlines, financials can easily become an overwhelming mountain to climb. A trustworthy accountant can help clients navigate those financial waters with ease. The key to a successful partnership is not just in making the numbers work, but in the relationship itself, and like any relationship this requires patience, compassion, hard work and effort.
 
 
2.         Trust: The Key Foundation of a Solid Relationship
 
Trust is the cornerstone of any strong relationship, and it’s no different when it comes to working with your accountant. When a client trusts their accountant, they are essentially entrusting the financial health of their business in your hands. That’s no small feat. As an accountant I had to learn that it’s not enough to only keep track of taxes and to ensure compliance, but also to provide honest and strategic advice to my clients on how to grow their business and what pitfalls to avoid. Client’s need to see you have their best interest at heart and sometimes this means also cautioning them against actions that may lead to short term gains but long-term losses. This is especially true when complex tax structuring comes into play.
 
 
3.         Say it as it is
 
Honest and open communication is vital. As accountant it’s my duty to make sure I truly understand my client’s business, and I need to know their goals, challenges, concerns, and future plans. I have a duty to share the financial concerns I may have about their business and this may include cash flow, growth projections, or tax obligations. In a modern economy, accountants have certainly become more than just number crunchers – they are partners who listens, asks the right questions, and offers invaluable insights. Regular check-ins and clear, jargon-free explanations are key to making sure you and your client both stay on the same page.
 
 
4.         Reliability: Be There When They Need You
 
When client’s run their businesses, the last thing they want is an absent accountant! Especially when they are about to make an important financial decision. As accountant you have to be reliable and responsive, especially during difficult times like tax season, financial year-end or financial planning phases. Whether clients are facing a tight deadline or a challenging financial decision, having someone they can count on is priceless. A reliable accountant not only meets deadlines, they also proactively provide clients with advice to help them stay ahead of the curve.
 
 
5.         Respect Each Other’s Expertise
 
Just as you bring your financial expertise to your business, so does your client bring their own set of experiences, specialised knowledge and skills to the table. Mutual respect is key to ensuring productive partnerships. Knowing when to listen and when to pushback are essential mutual skills that adds critical value and gravitas to any business relationship. An accountant who respects your business, your decisions, and your time is also more invested in helping you succeed. I have found that clients who comprehend and agree to the reality of their financial limitations, help both parties work toward the best possible outcome. This is a really vital aspect, and probably one of the most important elements in this list.
 
 
6.         Goodwill: A Partnership Built on Care and Support
 
Finally, a truly successful client-accountant relationship is one where both parties are actively working towards the greatest good for the business. A great accountant cares about the success of their clients. Clients are not just numbers and invoices, they represent people with families, loved ones, dreams and ambitions. The best relationships are also partnerships! This kind of goodwill makes it easy to navigate the ups and downs of business ownership, as both sides are committed to the long-term growth and stability of the company.
 
 
Final Thoughts
 
Besides being flattered by the number of clients who have stuck it out with us throughout the years, I am also humbled at the same time by challenges we faced together. I can honestly say that our entire team are truly committed to our clients and making sure they get the best possible outcomes where it relates to their accounting tasks, taxes, and business advice.
 
To build sustainable long-term relationships means to also be willing to do everything in your power to ensue the best potential outcome for your clients. It’s more than just being a numbers person – it’s about becoming a trusted advisor and a true business partner.
 
My best advice in closing to both accountants and clients is; like a marriage; it takes a hundred percent from both parties and many bags of salt – but boy is it worth it!
 
Thank you to all our clients who have chosen to journey with us, without you, we are just that, number crunchers!
 
For any assistance with important business decisions, analyzing of your financial data, or for any accounting related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. You can also send us an email at myrtleo@mbasa.org for more information.

I have gradually been impressed with the progress made by LLM models such as ChatGPT, AI tools relating to video, graphic design, data analysis, strategy and a multitude of other useful applications. The sheer convenience of being able to quickly fact check a piece of information, to rewrite a sentence or paragraph, or even whip together a Power Point presentation, is truly remarkable and saves a ton of time. Using these tools are actually a no brainer if you ask me.
 
  Even the professional accounting vertical have not been left unchanged. Many of our processes and procedures have been impacted and simplified by the development and use of these smart AI tools and software. My first introduction to this new approach, which also called for a greater client orientated focus, was Xero Accounting. A cloud-based accounting software application that I have been using in my practice for approximately 5 years now. Honestly, I have never looked back. Many of the larger accounting brands have been trying to match Xero’s software philosophy but are still playing catch-up in my professional opinion.
 
  Allow me to state, unequivocally that I don’t have an affiliate marketing or any endorsement deals with Xero Accounting Software. I share what their software, online tools and other applications can do for small to medium enterprise and business owners. Please also note I am not saying this is the bee’s knees, there certainly are other non-Xero tools and software that may work just as well or even better. This post is entirely based on my own experience and the benefits I see for my clients and the tools I am familiar with in my practice. It is always best to consult with a tax or accounting professional before making a final decision to use any tools or software.
 
  As I mentioned earlier, I switched to Xero accounting in 2020 as my preferred practice software for the following reasons:
 
It offered a cloud-based service, meaning it was accessible from anywhere at any time and saved me the risk of having to manage my own servers.
It permitted adding multiple users with various access levels and responsibilities, making it easy to collaborate between departments, teams and clients.
One of the best features, specifically aimed at clients, was the convenient uploading items such as debtors, creditors, documents, bank statements, invoices etc.
From an accounting perspective, all uploaded, source documents were traceable and linkable with specific journal entries.
We experienced an overall ease of use and had access to a great local technical support team from day one.
 
  For ease of reference, I have broken the different tools into functional segments as I think it might better illustrate the available options.  Also note that some of the tools are free to use, but in some cases, a monthly or annual fee per user may apply.
 
  These lists of tools serve both as internal operations management amplifiers, or simply to assist the small business owner in keeping a closer eye on their finances. Select the tools that solves your most pressing management problems and concerns. All tools have been hyperlinked to an appropriate web page if you wish to read more about it:
 
 
1.         Accounting Software
 
  Accounting software automates financial tasks like tracking income and expenses, generating reports, and managing taxes. Some of the benefits include, improved accuracy as human errors are reduced, increased efficiency by automating time-consuming tasks, better business insights through the availability of real-time financial data and reports.
 
Popular accounting software include:
 
Xero Accounting Software
Sage Accounting Software
QuickBooks / Intuit Accounting Software
 
 
2.         Document Control and Management
 
  Document control and management tools helps you securely store, organize, and share important business documents like contracts, invoices, and employee records, effectively helping you reduce your carbon footprint and saving on stationery and storage space.
 
  Some of the key benefits include enhanced security with the protection of sensitive data from unlawful access and breaches, improved collaboration by ensuring easy sharing of documents with clients / team members, and lastly, increased efficiency as document workflows are streamlined and time spent on searching for information is reduced.
 
Popular document control tools include:
 
Hubdoc
Content Snare
Prospero (to better manage business proposals, ideal if you issue a lot of proposal to multiple clients).
 
 
3.         Payroll and HR
 
  Payroll and HR software tools help to automate employee onboarding, assist with payroll processing, benefits administration, and performance tracking. Using these range of tools help to reduce payroll errors by eliminating inaccuracies in pay calculations and tax withholdings.
 
  These tools also aid the business owner to improve compliance by adhering to labor laws and regulations such as calculating minimum wage and monitoring working hours.
 
  HR tools aid the small business owner to create improved employee satisfaction, by offering simplified employee self-service tasks, and allowing for the updating of personal information.
  
Popular Payroll and HR tools include:
 
Payspace
SimplePay
 
 
4.         Invoicing and Jobs (Scheduling)
 
  I find the invoicing and job scheduling software to be of particular value to any small or medium sized business. During the start-up and early growth phase of any business, you want to focus on the tasks at hand and make a good impression on all your new accounts.
 
  These tools allow you to create and send professional quotes, invoices, to track project progress and properly manage client appointments. These are essential business functions. Why battle with a homemade Excell sheet when you can work professionally and effectively.
 
  While the benefits of these tools are obvious, it’s useful to know that these tools also facilitate quicker invoice payments by means of automated reminders and online payment options. These tools also help you to apply improved project management by leveraging visibility into project timelines, budgets, and resource allocation.
 
  All in all, these tools get to you to enhanced customer service by efficiently managing your business appointments and internal scheduling.
 
Popular Invoicing and Job tools include:
 
ServiceM8 (ideal for service-based businesses).
Tradify (ideal for trade-based businesses such as plumbers, cupboard makers, welders, electricians etc).
Simpro (ideal for businesses offering field services, projects and maintenance through service teams).
  
 
5.         Inventory and Stock Management
 
  Inventory and stock management tools help businesses track inventory levels, manage purchase orders, and optimize stock levels to prevent stockouts.
 
  Benefits include, a reduction in inventory costs as levels are better kept in check, leading to improved order fulfillment and timely delivery to customers. Improved decision making as more accurate data provides valuable insights into inventory trends and customer demand.
 
Popular stock management tools include:
 
Unleashed
Tidystock
Prospect (ideal for businesses where sales and marketing teams need to be aware of stock levels, backorders, current client orders and sales history).
 
 
Conclusion
 
  AI tools and smart software is here to stay, and I believe these tools and instruments will only go from strength to strength. While at present these tools assist in making mundane tasks more lively and quicker, there will come a day when these tasks are but a verbal command away.
 
  The obvious benefits are that these tools help you deliver better services and products, but it also fulfills another important role; it gives you an insight of what is possible and to look for new opportunities to innovate and improve.
 
  Many verticals will continue to be disrupted by these instruments and no sector is immune to the rhythmic march of progress. In my humble opinion it’s really a case of if you can’t beat them, then better to join them – quickly!
 
For any assistance with important business decisions, analyzing of your financial data, or for any accounting related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. You can also send us an email at myrtleo@mbasa.org for more information.