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

Get Compliant from Anywhere, Easy and Fast!

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

Table of Contents

  • Tax & Accounting

What Does an Accountant Actually Do for a Small Business in South Africa?

If you run a small to medium-sized business in South Africa, you’ve probably wondered: Do I really need an accountant? Many entrepreneurs assume accounting services are just about “doing the books” or submitting tax returns once a year. But the reality is far bigger. Professional support, such as monthly accounting services, plays a critical role in keeping your business compliant, protecting you from penalties, and helping you grow.

As Herman C Miny, resident tax and accounting specialist at Company Partners, explains:

“Most people think accountants only show up at tax season. The truth is, accountants are active every month, behind the scenes, keeping your business compliant, saving you money, and helping you make smarter decisions.”

Meet our SARS Tax Specialist at Company Partners Herman Miny

In the past 3 months, Herman and the other accounting specialists at Company Partners, have been requested to help more than 160 clients with tax and accounting services in order to grow their businesses and help them avoid costly mistakes, and so that they can focus on running their businesses successfully.

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The Core Role: What Does a Small Business Accountant Do?

So, what does a small business accountant actually do? Here’s the real scope of company accounting:

  • Monthly bookkeeping & reconciliations – Every transaction is captured and checked. Our monthly accounting services make sure your records are accurate, so you always know where your business stands.
  • Payroll & staff compliance – Managing payslips, PAYE, UIF (or even SDL), and employee tax correctly. Even small errors here can trigger SARS penalties.
  • VAT management – From VAT registration to monthly VAT returns, accountants keep your submissions clean and on time.
  • Tax submissions – Quarterly IRP6 filing and annual tax returns done accurately, preventing late fees or audits.
  • Financial reporting – Profit-and-loss statements, balance sheets, and cash flow reports – practical insights to manage your business, not jargon.
  • Compliance support – Need a tax clearance certificate for tenders? Or help with a tax backlog review? Accountants take care of it.
  • Forecasting & planning – Helping you budget, prepare for growth, and build realistic financial goals.

Herman puts it simply:

“Think of your accountant as the guardian of your financial health. They don’t just crunch numbers; they make sure your business stays alive and ready for opportunities.”

Why DIY Accounting Isn’t Enough

Many entrepreneurs try to “Google their way through accounting” or lean only on tools like Xero or Sage. While digital software is helpful, it doesn’t replace professional knowledge of South African tax laws.

Neither will it help you when SARS comes asking questions.

Common DIY pitfalls include:

  • Missing VAT or IRP6 deadlines.
  • Logging expenses incorrectly, leading to higher tax bills.
  • Payroll miscalculations that cause penalties (and unhappy staff).
  • Lack of forecasting, leaving the business unprepared for downturns.
  • Trying to claim VAT where you’re not allowed.
  • Accounting Records are missing preventing a business from applying for funding.

Herman warns:

“Software can capture data, but it cannot interpret South African tax law. That’s where costly mistakes happen.”

expert tip

Expert Tip: If your turnover is nearing R1 million (the VAT threshold) or you’re applying for tenders, professional accounting companies in South Africa are not optional - they’re essential.

When Should You Hire an Accountant?

A common question is: At what point is it worth getting an accountant?

Here are some clear signs:

  • You spend more than 5 –10 hours a month on business admin such as payroll, invoicing, etc., instead of sales.
  • You’re preparing for VAT registration.
  • You employ staff and need payroll compliance.
  • You’re applying for funding or tenders that require a tax clearance certificate.
  • You’ve received confusing letters from SARS or need help with a tax backlog review.

Herman explains it best:

“If your business is growing, your admin burden grows faster. Hiring an accountant isn’t a cost – it’s an investment in keeping that growth sustainable.”

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The Benefits of Having an Accountant in South Africa

So, what are the benefits of having an accountant?

Benefit Impact on Your Business
Time saved Focus on clients and growth instead of admin.
Tax efficiency Proper deductions and structuring mean lower tax bills.
SARS protection Accountants handle audits, disputes, and submissions.
Compliance peace of mind Avoid penalties and legal issues, which can take years to resolve with SARS.
Smarter decisions Reports & forecasts guide growth and funding.
Business growth Clean books unlock funding, contracts, and tenders.

Or as Herman says:

“A good accountant doesn’t just save you from penalties. They unlock opportunities you’d never qualify for if your books weren’t clean.”

Common Questions Entrepreneurs Ask

Yes. Xero records your transactions, but only an accountant applies tax law and ensures compliance.

Definitely. From VAT claims to structuring salaries, accountants find tax savings (within the law) that DIY business owners often miss.

Because mistakes are expensive (SARS can charge up to 300% penalties on the amount they think you should pay). A late IRP6 submission or misfiled VAT return can cost thousands or even millions in penalties.

Yes – especially in South Africa, where SARS compliance, tenders, and funding all rely on accurate accounting.

Even sole proprietors benefit from professional support, particularly once income grows past R350k a year or VAT registration becomes a factor. Due to your business and your personal tax affairs being seen as one and the same, it is important to ensure your accounting is accurate.

Accountants as Growth Partners - Not Just Number-Crushers

One of the biggest myths is that accountants only look backward at numbers. In reality, the best accounting service for small businesses acts as a growth partner. Here are a few examples of the benefits to business industries where monthly accounting services could be very helpful.

  • Imagine you’re running a restaurant. If you misclassify supplier invoices, you could face a large VAT penalty. An accountant ensures your expenses are correctly allocated and VAT claims are accurate.
  • If you’re in construction, government tenders often require a valid tax clearance and clean books. Without these, your application won’t even be considered – your accountant makes sure they’re ready.
  • Running an online store? Forecasting and cash flow management from an accountant helps you decide if you can safely expand, buy stock in bulk, or invest in marketing without running short on working capital.
expert tip

Expert Tip: Treat your accountant like a coach - ask them “what if” questions about your growth, not just past compliance.

Herman sums it up:

“Accountants are like co-pilots. You fly the plane, but we watch the radar, the fuel, and the weather so you can focus on the destination.”

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DIY vs Accountant vs Company Partners

Here’s how Company Partners fits in compared to DIY solutions or traditional accounting firms:

Approach DIY (Google & Software) Traditional Accountant Company Partners
Cost Low upfront, but high risk of penalties Often very expensive Affordable monthly packages
Time Owner spends 10+ hrs/month Accountant-driven Done-for-you
Compliance Easy to miss SARS deadlines Usually compliant Always compliant, with reminders
Growth support Limited (no forecasting) Sometimes included Forecasting + compliance + growth focus
Accessibility Online tools only Often office-based Digital, national reach, quick turnaround

Is It Time to Get an Accountant?

The truth is: small business accounting isn’t optional if you want to grow. From monthly accounting services to VAT registration and tax clearance certificates, professional support saves money, protects your reputation, and frees your time.

If you’re asking: When should I hire an accountant for my business? – the answer is probably now.

Herman leaves business owners with this thought:

“Your accountant should be more than a bookkeeper. They should be your partner in building a compliant, tax-efficient, and future-proof business.”

Why Company Partners is the Smart Choice

Accounting is often seen as a necessary evil, but when done right, it becomes one of the most powerful tools a business owner can rely on. In South Africa’s competitive environment – where compliance, tenders, and funding are tightly connected to your financial records – the difference between “DIY accounting” and professional support can mean the difference between stagnation and growth.

Here’s the bigger picture:

  • Without an accountant, you risk costly mistakes, wasted time, and missed growth opportunities.
  • With a traditional accountant, you may get compliance covered, but you often pay steep fees and don’t always receive proactive advice.
  • With Company Partners, you gain affordable, professional, and forward-looking support. We combine compliance with strategy, helping small businesses thrive – not just survive.


And because we specialise in SMEs, we understand the realities you face: fluctuating cash flow, the stress of VAT deadlines, and the pressure of keeping SARS satisfied. We’ve helped thousands of entrepreneurs – just like you – register, remain compliant, and build sustainable businesses with practical tools and hands-on guidance.

So, is an accountant worth it? Absolutely. The real question is: Can you afford to run your business without one?

Ready to shift your focus from paperwork to profits?

Start with our Monthly Accounting Services today and discover how much easier - and safer - business ownership can be with the right partner at your side.
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