Accounting & Tax FAQ for South African SMEs
This accounting FAQ covers the most common questions we receive from SMEs across South Africa on accounting, tax, SARS submissions, payroll and cloud accounting. Browse the questions below or contact our Durban-based CA(SA) team directly.
General Accounting Questions
ou must register for VAT when your taxable turnover exceeds R2.3 million in any 12-month period. You may also voluntarily register if your turnover exceeds R120,000. Late registration carries penalties from SARS, so it’s important to monitor your turnover carefully. We help businesses assess their VAT position and manage the registration process.
A bookkeeper records day-to-day financial transactions, while a Chartered Accountant CA(SA) is a qualified professional who can provide financial statements, tax advice, auditing, and strategic business guidance. For most SMEs, having a CA(SA) manage your finances ensures full SARS compliance and gives you access to higher-level financial insight.
Most businesses submit annual financial statements and tax returns. However, VAT returns are submitted either monthly or bi-monthly depending on your VAT category, and PAYE must be submitted monthly. Our team manages all submission deadlines on behalf of our clients so nothing is missed.
SARS requires you to keep all financial records for a minimum of five years. This includes invoices, receipts, bank statements, payroll records, VAT returns, and any supporting documentation for deductions claimed. We recommend cloud-based accounting software like Xero to keep your records organised and audit-ready.
Tax & SARS Questions
Provisional tax is a method of paying income tax in advance, based on estimated taxable income. Any person or business that earns income other than a salary is generally required to pay provisional tax. Payments are due twice a year — in August and February — with a top-up payment due after year-end assessment. We calculate and submit provisional tax returns for all our clients.
SARS imposes administrative penalties for late submission of tax returns, which can range from R250 to R16,000 per month depending on your taxable income. Interest is also charged on late payments. We proactively manage all deadlines to ensure our clients never face unnecessary penalties.
Yes, if you work from home and have a dedicated area used exclusively for business, you may be able to claim a portion of your home expenses as a tax deduction. The deductible amount is calculated as a percentage of the total floor area used for business. We advise clients on what qualifies and ensure claims are correctly structured for SARS.
Tax & SARS Questions
Log into your SARS eFiling profile, select the relevant tax return (e.g. ITR12 for individuals or ITR14 for companies), complete all required fields, attach supporting documents, and submit before the deadline. Errors or missed sections are a common cause of delays and follow-up SARS queries. We handle the full eFiling submission for our clients, from document preparation through to final submission and confirmation.
You can check your return status by logging into SARS eFiling and viewing the “Track Status” section under your tax return, which shows whether it’s been received, is under verification, or has been assessed. If your return has been under review for an extended period without explanation, this is often worth querying directly with SARS. We monitor return status on behalf of our clients and follow up with SARS where delays occur.
A refund is triggered automatically once SARS assesses your return and determines you’ve overpaid tax, provided your banking details on file are correct and up to date. Refunds can be delayed or blocked by outstanding returns, mismatched information, or a SARS verification review. We check for common refund blockers before submission and follow up directly with SARS if a refund is delayed.
A verification flag means SARS wants supporting documentation before finalising your assessment — this is common and doesn’t necessarily mean something is wrong. Respond promptly with the requested documents through eFiling, as unanswered verification requests can lead to delays or penalties. We manage verification responses for our clients and know exactly what SARS typically requires for a fast resolution.
Payroll & PAYE Questions
PAYE must be submitted to SARS by the 7th of each month following the payroll run. Employers must also submit an EMP501 reconciliation twice a year — in October and April. Late submission results in penalties and interest. Our payroll team handles all PAYE calculations, submissions, and reconciliations on behalf of our clients.
Incorrect payroll can result in over or underpayment of employees, incorrect PAYE submissions, and potential SARS penalties. It can also create legal risk under South African labour law. We manage payroll for businesses of all sizes, ensuring every employee is paid correctly and all statutory deductions are handled accurately.
Company Secretarial Services
Company secretarial services cover your statutory compliance obligations with CIPC (the Companies and Intellectual Property Commission) — including annual returns, beneficial ownership filings, director and share changes, and maintaining your company’s statutory records. Any registered company in South Africa is legally required to stay compliant with CIPC, regardless of size. We handle company secretarial compliance for SMEs so directors don’t have to track CIPC deadlines themselves.
Missing a CIPC annual return can result in penalties and, if left unresolved for long enough, your company can be deregistered — which creates serious complications for banking, contracts, and tax compliance. We track CIPC deadlines for our clients and manage annual return submissions before they become a problem.
Beneficial ownership filing is a CIPC requirement for companies to disclose the individuals who ultimately own or control the business, introduced as part of South Africa’s efforts to combat financial crime. Most registered companies and close corporations must submit this information to CIPC and keep it updated when ownership changes. We prepare and submit beneficial ownership filings as part of our company secretarial service.
Yes. Share transfers, director appointments or resignations, and changes to a company’s registered details all need to be formally filed with CIPC to be legally valid. We prepare the required documentation and handle the CIPC filing process for share transfers and director changes.
Trust Structuring & Advisory
A trust is a legal structure that holds assets on behalf of beneficiaries, managed by trustees according to a trust deed. Business owners and families use trusts for estate planning, protecting assets, and structuring how wealth or business equity is passed on, often with tax and succession advantages compared to holding assets personally. We advise on whether a trust structure suits your specific circumstances before recommending one.
A trust is generally worth considering if you’re holding significant assets or business equity, want to protect assets from personal liability, are planning for succession or estate duty, or need a structure that separates ownership from day-to-day control. It’s not right for every situation — the costs and administrative obligations of running a trust properly need to justify the benefit. We assess your specific position before recommending a trust structure over simpler alternatives.
How does a trust affect my tax position?Yes. Share transfers, director appointments or resignations, and changes to a company’s registered details all need to be formally filed with CIPC to be legally valid. We prepare the required documentation and handle the CIPC filing process for share transfers and director changes.
Trusts are taxed differently from individuals or companies, and transferring assets into or out of a trust can trigger capital gains tax (CGT) or donations tax depending on how the transaction is structured. Getting this wrong can create an unexpected tax bill, so proper structuring at the outset matters. We handle the tax modelling and structuring for trust setups and transfers, including CGT and donations tax planning.
Yes — it’s a common structure for business owners wanting to separate ownership from operational control, or to plan for succession without directly transferring shares to individual family members. This requires careful drafting of the trust deed and coordination with your company’s shareholding structure. We structure and manage trust-held shareholding arrangements as part of our advisory work.
Cloud Accounting & Technology
Yes. While cloud accounting software like Xero and Sage makes bookkeeping much easier, it does not replace the expertise of a qualified accountant. Software captures transactions but a CA(SA) interprets the numbers, ensures SARS compliance, identifies tax-saving opportunities, and provides strategic financial guidance. We are Xero certified advisors and work with clients to get the most from their cloud accounting software.
Accounting fees vary depending on the size of your business and the services required. We offer transparent monthly packages starting from a fixed fee, covering bookkeeping, VAT submissions, payroll, and annual financial statements. Visit our packages page for full details or contact us for a personalised quote.
Yes — lenders and funders typically require up-to-date financial statements, management accounts, and cash flow projections as part of a funding application, and having these professionally prepared significantly strengthens your application. We prepare the financial documentation SMEs need for funding applications, and can advise on which figures funders and banks focus on most.
Still have questions? Our team of qualified accounting professionals is based in Durban and serves SMEs across KwaZulu-Natal, Gauteng, and South Africa nationally. Contact us today or book a free consultation and we’ll be happy to answer any questions about your specific situation.