South Africans are well known for their hustle mentality as the impulse of entrepreneurship weaves its way through the fabric of Cape Town society. You do not need to venture very far to see this, just a short walk down one of our bustling streets will greet you with an array of vendors, from artisanal coffee roasters to “shweshwe” clothing lines adding vibrancy to the street décor. We have social media managers, marketing agents and tech consultants, beneath every vocation the pulse of entrepreneurial ambition is palpable.
As such, whether these jobs begin as merely a side hustle or passion project, there is often a moment where your business begins to scale beyond what you initially might have anticipated. Your informal side gig becomes a business. Finding yourself in a position where you are now running a business full-time can be a daunting experience, but it is also exciting. With the professional accounting services Cape Town has to offer you through SureBooks, you can rest assured that we will help you in this journey of scalability.
Utilising these accounting services Cape Town can offer is especially critical within the unique and constantly evolving economic landscape of the Mother City, which is flooded with regulatory quirks. These can be near impossible to navigate without an adequate accounting partner. In this article we will explore the risks of informal trading, how to meet vital growth milestones, a guided approach to SME growth and looking at your business beyond the numbers.
Accounting Services Cape Town: What Are The Risks Of Staying Private?
In the early stages of building a business many South African entrepreneurs operate informally. This is very understandable as it’s far less hassle without the myriad of paperwork and there are no immediate tax obligations. Unfortunately, operating informally does come with some risks and the potential for legal ramifications down the line.
When operating without a formal business registration there are multiple factors which could affect your business’ potential for growth. For example, you would not be able to apply for certain government tenders, bank loans or SME development programmes, to name but a few examples. Additionally, without accurate professional accounting services Cape Town can provide you with, your business could run the risk of not being tax compliant and therefore pose the risk of penalties as well as not being adequately prepared for tax season. Moreover, you would not be able to track your cash flow which is a vital component to running a successful business enterprise.
Employing good accounting services Cape Town has is an effective tool with which to bridge the gap between an informal and structured business enterprise. However, in a city like Cape Town where the fast-paced urban environment blurs the lines between creative side projects and tangible, scalable businesses, this transition from informal to structured can spell the difference between the continued exhaustive hustle and measurable, tangible growth.
Managing this transition toward a more formal operation will also increase the credibility and reputation of your business. Informal business set ups inspire less confidence from new potential investors and could negatively impact the onboarding of new clients. It would also make applying for a vendor slot at a major event much more difficult as having a watertight accounting setup assures others that you are not just another informal side hustle, but that you are organised, serious and dependable.
How To Know When Your Business Needs Accounting Help
Perhaps you have been successfully running a side hustle for some time but have been entertaining the idea of enlisting some extra help with your books. In the following section we are going to discuss specific key indicators that signal your need for accounting assistance, this includes registering your business, hiring staff, increased earnings and securing funding.
If you are considering the possibility of forming a (Pty) Ltd (a private limited company) or trading as the sole proprietor of your company, contracting in an accountant will mean that you will receive the relevant advice to best suit your income goals. Additional services that we can provide include assistance with SARS registration, BEE compliance and advice on which kind of business bank account is best suited for your company.
Through the implementation of a good business structure, you will effectively garner big tax savings through early registration. As a result, you will ensure that you are set up in a way that creates a foundation for growth and effectively mitigates the need for costly restructuring down the line.
Hiring staff is another factor which greatly impacts how your business is allowed to operate. With a single staff appointment, you would need to negotiate a myriad of labour law regulations such as UIF and PAYE. Thus, having an expert accountant who is up to date with Cape Town’s labour laws and who is able to handle payroll concerns, issue payslips and submit tax returns becomes vital for the overall compliance status of your business.
More than this, by utilising a trusted accountant from SureBooks, you will receive vital guidance in smaller administrative details such as contract negotiations and budget reorganisation for potential employee benefits. This in turn will maximise employee satisfaction so that your workforce remains happy and productive.
Now that your side-hustle has grown and you are expanding your workforce, your income will start increasing too. As such, your tax profile will be altered as your income and expenditure patterns are changed. This could result in a need for you to plan for capital gains, register for VAT and have to pay provisional tax. A professional accountant can assist you in managing these various factors as well as mitigating possible underpayment which could result in massive financial penalties. On this same score, you will be able to maximise your legitimate deductions.
Another large transition that you will encounter in the management of your finances as your income grows, is the switch from “reactive” to “proactive” accounting. This means that instead of only dealing with your finances from a reactionary perspective – tracking expenditure etc. you rather take a pre-emptive forecasting approach which will predict what is coming and how best to implement risk management and sound financial planning. Making use of a skilled accountant will allow you to predict and work with possible scenarios, evaluate the possibility of scalability and test out the performance potential of new product/s.
When looking for new avenues of funding, whether it is investors or a bank, the amount of paperwork that is required is momentous. They certainly won’t accept a spreadsheet as proof of income and will expect balance sheets, profit and loss statements alongside a very comprehensive overview of your financial health. This is where an accountant is an invaluable asset so that you can feel assured that you are presenting authorities with the relevant paperwork.
SureBooks Accounting Services In Cape Town
At first it may not seem particularly important where your accountant is based – so many of us work remotely after all. However, when running a business in a specific area, having the relevant knowledge of municipal requirements and compliance legislation is vital. There are also a particular set of industry challenges which are specific to the Western Cape.
Examples include sectors such as tourism, hospitality and cultural/creative fields. As such, employing a Cape-based accountant will give you the peace of mind that their familiarity of local context will provide you with the relevant guidance to navigate any accounting challenges that may arise.
Another aspect about increasing the scale of your business that it requires more than just savvy administration, it requires a different mindset. If you have been running your business independently for some time, perhaps you find the idea of handing over the finances quite stressful, or perhaps you are unsure of what you need at all.
Fortunately, our SureBooks accountants we are here support and assist you through the grey areas you may be struggling with. More than just helping you to avoid costly audits, our accountants will assist you in regaining or gaining critical financial confidence.
Growth can take many forms, perhaps it frees up more time so that you can focus on vital other components of your business such as product development, customer service or even just finding balance in your personal life. The more your business expands, the more your role will develop to facilitate the bigger picture. This may require leadership, vision and strategy – all of which are time intensive. Thus, by leaving behind the often-stressful DIY mentality behind business ownership, by investing in professional accounting services in Cape Town, you will open an entirely new avenue for growth and development.
SureBooks Accounting Services Cape Town – SME Growth
As alluded to prior, SureBooks is well acquainted with Cape Town’s innovative and ever evolving startup scene with a particular focus on assisting businesses to move from informal to formal business structures. This includes various services such as bookkeeping, payroll, tax compliance and the relevant financial forecasting.
What makes us unique?
At SureBooks, our accountants are expertly trained so that we deliver top quality and reliable personal service. Paired alongside this, we utilise the latest cloud-accounting software technology so that you are given real-time, instant access to all your financial data. Added to this is our knowledge competency informed by the local business terrain. Perhaps you are simply seeking assistance with navigating SARS, need a little extra help with cash flow projections or just an expert eye on a few spreadsheets, no matter what you require, SureBooks has your accounting needs in hand.
What We Offer:
Offering an extensive accounting and financial services, SureBooks is the first choice for small to medium businesses in Cape Town.
We offer a range of services which can be contained to four categories, namely general accounting services, payroll services, bookkeeping services and financial advisory services – all of which can be accessed through a range of our premium accounting packages.
This Includes:
SureStart:
Coming in at a reasonable R2,200 per month, this is an entry level accounting package which is chiefly suited for businesses who are handling up to 100 transactions monthly.
SureGrowth:
For R3,300 a month, this package is ideal for businesses which are slightly more established performing around 250 transactions monthly.
SurePlus:
At R4,500 per month this is a far more extensive package designed for businesses that need more in-depth accounting services.
SureCFO:
For R6,500 a month, this premium accounting package offers a range of services including Bi-weekly calls, executive reporting, virtual CFO support, strategy and Measurement and control.
And if these packages are a little outside of your financial wheelhouse at this time, you can also find options from as little as R500-R900 with our SurePay and SureTaxes packages which will equip you with the crucial financial tools to handle things like payroll, compliance and Xero Books cloud integration.
The Best Of Accounting Services Cape Town With SureBooks
So, if you are an entrepreneur, a startup aficionado or side hustle expert, it is time to make the choice whether you would like to take your business to the next level. Will you scale it accordingly and transform your side hustle into a permanent and sustainable venture? Visit our website today and find out how our professional accounting services Cape Town offers can help you move to the next level.
