Quick answer

A small business usually needs an accountant when it registers a company, when turnover grows enough that VAT registration or provisional tax comes into play, when it takes on employees, or when the owner no longer has time to keep the books accurate.

Many owners start with a bookkeeper or accounting software and bring in an accountant for annual financial statements, tax returns and advice as the business grows.

Step-by-step guidance

  1. Check what your business must file: company annual returns with CIPC, income tax returns with SARS, and VAT, PAYE or provisional tax where they apply.
  2. Keep simple records from the start, such as invoices, receipts and a separate business bank account.
  3. Bring in an accountant when you register a company, approach the compulsory VAT registration threshold or hire staff.
  4. Ask the accountant to set out what they will handle and what you still need to do.
  5. Review the arrangement each year as the business grows.

What to check

Common mistakes to avoid

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Frequently asked questions

Does a sole proprietor need an accountant?

Not always. Many keep their own records, but an accountant can help with tax returns, provisional tax and planning.

When must a business register for VAT?

Once taxable turnover exceeds the compulsory threshold set by SARS. Check the current threshold on the SARS website.

Does my small company need an audit?

Not every company does. It depends on factors such as its public interest score, so ask an accountant to confirm.