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Get Compliant from Anywhere, Easy and Fast!

0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!

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  • Tax & Accounting

How to Choose the Right Accounting Firm for Your Business?

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As an SME in South Africa, you know that managing your finances effectively is essential for you business’ success. But with so many tasks on your plate, it can be challenging to keep up with bookkeeping, tax preparation, and financial reporting. That’s where an accounting firm can help with outsourced bookkeeping services for small businesses in South Africa.

In this guide, we explore the various aspects of Accounting and how to choose the right accounting Firm for your business.

What type of Accountant is best for a small business?

The best type of accountant for a small business is one who has experience working with small businesses and understands their unique needs. Small business accountants should be able to provide a wide range of services, including bookkeeping, tax preparation, financial reporting, and business advisory services.

The accountant you choose should have an accounting firm registered as a Pty at CIPC. The accounting firm should also be registered with a recognised accounting body in South Africa such as SAIBA or SAIT.

saiba sait

Here are some of the types of accountants in South Africa that are a good fit for small businesses:

Bookkeeper: A bookkeeper is responsible for recording and organizing financial transactions. Bookkeepers can help small businesses with their day-to-day accounting tasks, such as invoicing, bill payments, and payroll processing.

Registered Accountant (RA): A RA is a licensed accountant in South Africa who has passed an exam that meets certain education and experience requirements. RAs can provide many of the same accounting services to small businesses as CAs, but there are some restrictions on the services they can provide. For example, carry out independent audits.

Virtual Accountant: A virtual accountant provides accounting services remotely. This can be a good option for small businesses on a tight budget or that don’t need full-time accounting staff.

What are the benefits of working with an Accounting firm?

Choosing an accounting firm for your business is important because they can provide you with a number of benefits, including:

  • Expertise: Accounting firms have the expertise and experience to help you manage your finances effectively and efficiently. They can help you with everything from bookkeeping and tax preparation to financial reporting and business advisory services.
  • SARS Compliance: Accounting firms can help you stay compliant with all applicable SARS Tax laws and regulations. This can save you time and money, and help you avoid costly penalties.
  • Peace of mind: Knowing that your finances are in the hands of experienced professionals can give you peace of mind. You can focus on running your business, while your accountant takes care of the financial details.
  • Growth: A good accounting firm can help you grow your business by providing you with the financial insights and support you need. They can help you develop financial projections, identify areas for improvement, and make sound financial decisions.


In addition to these benefits, choosing the right accounting firm can also help you save money. A good accountant can help you identify Tax deductions and credits that you may be eligible for.

If you are serious about growing your business, it is important to invest in a good accounting firm. A good small business accountant can be your trusted advisor and partner, helping you achieve your business financial goals.

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Here's two Case Studies showing the benefits of using an
Accounting Outsourcing Firm for your SME's Monthly Accounting Service

Company A is behind on Tax for 7 Months:

Business Example: Company A is a small business that has been behind on their Tax submissions to SARS for 7 months. 

Challenge: The owner, John, has been too busy running the business to focus on the accounting, and he has now started getting notices from SARS about the R25 000 in penalties and interest on VAT that he owes.

Long-Term Effect: Due to Company A having a non-compliant status as SARS, the company is losing opportunities to apply for tenders and contracts and grow the business.

Solution: Basic Monthly Accounting @ R1990 per month:

This package and price are based on the market average – See examples here.

  • Monthly accounting of books up to Management Accounts.
  • IRP6 Provisional Tax Returns (August & February).
  • IT14 Tax Returns (July).
  • Tax Clearance Pin Renewal Annually.
  • Monthly Accountant Feedback Sessions (30min – 1hr).
  • Accounting Software License Included (SmartEdge).

 

Compliance: Tax Clearance Compliance status at SARS.

Savings: John is saving approximately R1582 per month due to Tax Submissions and Accounting Compliance being up to date at SARS.

Financial Control & Growth Opportunities: SmartEdge Accounting Software ensures control and accuracy of all monthly accounting required. 

The Accountant has also been able to provide valuable insights into the financial performance of the company and financial strategies that will help the company to achieve its business goals.

John is now able to pull a Tax Clearance Pin Certificate for his company to apply for tenders and contracts.

Conclusion: 

John is very happy with the decision to hire a monthly accounting service. The accountant has helped him get back on track with his taxes and reduce his risk of penalties and interest from SARS. 

 

Company B is only doing Tax Annually:

Business Example: Company B is a small business with an annual turnover of R3 million that only does its financial statements and tax submissions annually instead of upkeeping its books monthly.

Challenge: The owner, Sarah, has been doing her own accounting and then sends it to the bookkeeper annually. It is becoming increasingly difficult to keep up with monthly accounting tasks, and she is starting to worry about making mistakes.

Long-Term Effect: Due to Company B only doing annual accounting and taxes, they are not identifying opportunities to save money on taxes quick enough to make changes and gain the benefits. 

Solution: Full Monthly Accounting @ R3490 per month:

This package and price is based on the market average – See examples here.

  • Monthly accounting of books up to Management Accounts.
  • IRP6 Provisional Tax Returns (August & February).
  • IT14 Tax Returns (July).
  • Tax Clearance Pin Renewal Annually.
  • VAT Processing and Returns.
  • Annual Financial Statements.
  • Monthly Accountant Feedback Sessions (30min – 1hr).
  • Accounting Software License Included (SmartEdge).
  • Personal Tax Returns.

 

Compliance: Tax Clearance Compliance status at SARS.

Savings: The accountant has identified tax deductions and credits Company B may be eligible for, which saves money. The accountant prepares the tax returns accurately and on time, which avoids costly tax penalties and interest.

Financial Control & Growth Opportunities: The SmartEdge Accounting Software gives Sarah access to up-to-date financial information, which she can use to make informed business decisions.

The Accountant is also able to identify cash flow issues monthly. This gives the Sarah the opportunity to take corrective action before the problems become too serious.

Conclusion: 

Sarah is very happy with the decision to hire a monthly accounting service. The accountant has saved her a significant amount of time and money, and they have helped her to create better control over her finances.

How to choose the right Small Business Accountant?

With so many Accounting firms in South Africa to choose from, it can be difficult to know where to start. Here are a few tips to help you choose the right accounting firm for your small business in South Africa:

 

1. Define the Accounting Services your Business needs:

Before you start your search, take some time to assess your specific accounting needs.

What services do you need? Are you looking for a firm to handle all of your accounting tasks, or do you just need help with certain aspects, such as Tax preparation or financial reporting?

Here are some examples of different accounting needs that SMEs in South Africa have:

  • Bookkeeping: Bookkeeping is the process of recording financial transactions. This includes tracking income and expenses, as well as accounts payable and receivable.
  • Tax preparation: Tax preparation is the process of completing and filing tax returns for your business. This can be a complex task, especially for businesses with multiple income streams or complex tax structures.
  • Financial reporting: Financial reporting involves creating financial statements that show the financial health of your business. This includes the balance sheet, income statement, and cash flow statement.
  • Business advisory services: Business advisory services can help you make sound financial decisions for your business. This includes developing financial projections, identifying areas for improvement, and creating a business plan.


Not all small businesses need the same accounting services. Some businesses may only need help with bookkeeping and tax preparation, while others may need more comprehensive accounting services, such as financial reporting and business advisory services.

It is important to assess your specific needs and choose a small business accountant that can provide a comprehensive accounting solutions to all your business needs.

 

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2. Research Accounting Firms in your area:

Once you have a good understanding of your needs, you can start researching accounting firms in your area. You can ask for referrals from other business owners, search online, or contact your local chamber of commerce. When making your list of potential accounting firms, consider the following factors:

  • Experience: Look for firms with experience serving small businesses in your industry.
  • Credentials: Make sure the firm is registered with a professional accounting body, such as the South African Institute of Professional Accountants (SAIPA) or the South African Institute of Chartered Accountants (SAICA).
  • Services: Does the firm offer the specific accounting services you need?
  • Accounting Software and Tools: Look for firms that embrace cloud accounting software, as it offers convenience, real-time access to financial data, and improved collaboration between you and your accountant.
  • Pricing: Accounting firms can vary widely in terms of pricing. Get quotes from several firms before making a decision.
  • Long-Term Scalability: As your business grows, your accounting needs may evolve and become more complex.  A firm with a diverse team of experts and a track record of serving growing businesses can provide the necessary support and guidance as your business expands.
  • Client Reviews and Testimonials: Pay attention to the overall satisfaction of clients, their experiences with the firm’s expertise and professionalism, and any specific feedback related to the services you are seeking. Real-life experiences from other business owners can provide valuable insights into the firm’s capabilities.

3. Schedule an Accounting Consultation:

Once you have a list of potential small accounting firms, schedule consultations with each one. This will give you a chance to meet the team, discuss your needs in more detail, and get a feel for the firm’s culture. Be sure to ask questions about the firm’s approach to accounting, communication style, and experience working with small businesses. These questions are very important as they will be the foundation to building a relationship with your accountant. It will also help ensure that they understand your business needs and can provide the best possible accounting service.
monthly accounting

Conclusion:

Remember, selecting the right accounting outsourcing firm is a crucial decision that can significantly impact the financial health and success of your business. Take your time, do thorough research, and trust your instincts to make an informed choice.

With the right small business accountant by your side, you can focus on growing your business while leaving the financial management in capable hands.

If you are an SME in South Africa looking to
Outsource Accounting for your small businesses, we can help.

Company Partners is your one-stop shop for Outsourced Accounting Services for SMEs in South Africa. Our Accounting Services are focused on saving businesses money.
There is no risk for you – just reward!
Get a Free Consultation Now

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