Account for the Taxman

As indicated in one of my earlier posts I have learnt A LOT of lessons, which I am more than happy to share so that the same mistakes are avoided by others who want to venture into their own entrepreneurial venture. I have identified five key lessons, which will be delved into over the next five Fridays.

Lesson 1 - pay SARS 

The taxman is not going to go away.

You need to make sure that you pay your dues and set that % aside for tax | Vat | PAYE. I know that when you are starting up you need every single penny; bills come in, salaries need to be paid and paying that amount (which is usually not a pleasant surprise, but a surprise nonetheless) over to SARS seems near to impossible and crippling. But trust me it is a lot better than it all adding up and contending with late payment penalties and interest, which you will have to if you don't settle it.

This is where a good accountant comes into play (this in itself is a lesson - but I think it fits nicely with the SARS lesson).  I have invested in MANY accountants, both in Johannesburg and in Cape Town. An accounting lesson - there is no such thing as creative accounting - SARS will need to be paid whether you are creative or not, and I have found that the more creative the accountant tries to be - the more colourful your language will be in the long-run.

It has taken me eight painful years to find the right accountant-fit. Business Accounting Network (BAN) (www.ban.co.za) has been my beacon of hope in the accounting world. They specialise in small business accounting and are the first accountants who have taken a real interest in the business' finances, not only doing the figures, but also helping with budgeting and financial planning so that there are no 'surprises' from SARS. They also value building a rapport with the business owners that they work with; we have monthly meetings where we discuss the finances and what the financial health is of the business.

The finance part of the business is so crucial, the best is to make peace with SARS and to find that accountant-fit as soon as possible in your new business venture, so that you can spend your time on the actual purpose of your business.