In the life cycle of every small business or start-up, one early trap catches many founders off guard: failing to separate personal and business finances. Whether you’re a seasoned entrepreneur or just starting out, maintaining clear financial boundaries is essential for protecting yourself and your business and ensuring long-term success. Here are five tips to help you draw the line.

Mixing personal and business finances is so easy, particularly at the beginning. The company needs something, but money hasn’t come in, so you extend a small loan. You pay yourself back, by paying for the groceries on the company card.  A recent report by the US Federal Reserve on economic wellbeing has revealed that 39% of small business owners use personal funds to cover business expenses. This creates unnecessary risk and could expose both parties to potential audits, bankruptcy and even criminal prosecution. So, how do you untangle personal and professional spending without creating more chaos? These are our five tips.         

1. Open a separate business bank account
   The first step is getting a separate bank account for your business. This small step already makes it so much simpler to keep all income, expenses, and taxes distinct from your personal finances – giving you clarity and protection in case of an audit. Once your account is open, ensure all business payments go in and out of it exclusively. Resist the temptation to make personal purchases on your business card even just once.
   
   
2. Apply for a business credit card
   A business credit card can be a powerful tool to keep finances clean and establish credit history for your company. It allows you to track spending, earn business-relevant rewards, and build a credit score separate from your personal one.  According to a 2022 Nav Small Business Survey, 45% of business owners didn’t even know they had a business credit score. This is a missed opportunity – strong business credit can help with financing, insurance, and vendor relationships down the line.
   
   
3. Pay yourself a salary (or draw consistently)
   Many business owners pay themselves sporadically or in large lump sums, depending on how much is left over each month. This creates cash flow chaos and a personal dependence on the business that’s hard to manage. Instead, create a set payment structure, either paying yourself a salary or a set amount on certain dates. This structure will help you plan personally and track business performance more accurately.
   
   
4. Use accounting software
   Manual spreadsheets can work in year one, but as soon as your business gains momentum, you’ll need robust tools. Software like QuickBooks, Xero, or Wave allows you to categorize expenses, reconcile accounts, and prepare for tax season with confidence.  A study by Intuit QuickBooks showed that 69% of small business owners who used accounting software reported greater clarity over their finances and fewer tax-related errors. Automating your bookkeeping and syncing accounts ensures your records are always up to date and SARS-ready.
   
   
5. Work with a bookkeeper or accountant from the outset
   It’s tempting to wait until tax time or a cash flow crisis to call in a pro. But a good accountant is a strategic partner, not just a compliance necessity. They can help you optimise deductions, structure your pay, and ensure your financial systems scale with your business.  According to a survey by the National Small Business Association, 42% of business owners spend over 80 hours per year on taxes. A qualified accountant or tax practitioner can reduce that significantly, while helping you avoid costly mistakes. Look for someone with experience in your industry and business model.

Youth Day on 16 June is a great time to consider the advantages of employing young people in your business – and to find out how SARS’ Employment Tax Incentive (ETI) can assist your company to do this at a reduced cost.  Key to unlocking the benefits of this tax incentive – and of having young employees – is the professional assistance we bring to ensure ongoing compliance with the numerous and ever-changing rules and administrative issues that come with this incentive. 

South African businesses are always looking for ways to foster growth and innovation while still reducing costs.  One way to achieve both is to employ young people. Young workers bring unique advantages that can transform your organisation. What’s more, the government subsidises part of the employment costs for qualifying young employees through SARS’ Employment Tax Incentive or ETI.

1. What young employees can bring to your business

   • Tech savvy: More comfortable with new technologies, young employees can accelerate digital adoption in your business.
   • Fresh perspectives: Young employees often introduce innovative approaches and creative solutions.
   • Adaptability: Young people tend to be more flexible and better equipped to respond to sudden changes and unexpected circumstances.
   • Fast learning: Fresh out of formal education, young people often learn more readily and are eager to apply their skills.
   • Energy and enthusiasm: The energy and optimism of younger workers can positively impact team dynamics and workplace morale.
   • Future-proofing: Young employees help businesses keep up to date with technological developments, emerging trends and the millennial and Gen Z markets.

2. How the ETI benefits local companies

   • The ETI makes it more cost-effective for companies to employ young people and to harness all the benefits mentioned above.
   • Essentially, this incentive subsidises part of your employment costs for qualifying young employees for two years. There is no limit to the number of qualifying employees that an employer can hire.
   • The young employees’ wages are paid by the employer in full, and the ETI is claimed by reducing the employer’s monthly Pay-As-You-Earn (PAYE) liability by the calculated ETI amount. This creates immediate positive effects on your cash flow.
   • It goes without saying that hiring more employees at a lower cost – and the boost of youthful energy they bring – will positively impact productivity and innovation in any company. Many South African businesses use the ETI to create a competitive advantage, build a talent pipeline for the future, and enhance their Corporate Social Responsibility credentials.

As a business owner, at some stage you will inevitably be asked to help an employee through a crisis in either their personal or professional life. How you respond to their bereavement, financial difficulties or workplace meltdown, will directly affect your other employees and your company culture. Supporting your staff can increase loyalty, improve morale, and strengthen team cohesion. But it’s not just about empathy – these situations can have long-term implications for productivity, reputation, and even your bottom line.

Employee engagement. It determines so much about the direction of a company, its staff productivity and how likely it is to succeed. According to a Gallup poll just 23% of South African employees are actively engaged, and the support offered by your company during difficult times is a key predictor of whether your employees are doing better or worse than that. Ignoring a personal crisis or mismanaging it can result in diminished trust, high turnover, and costly legal complications. On the other hand, getting it right can transform a tough moment into a team-building exercise that drives loyalty across your enterprise. Here are our five tips for handling an employee’s crisis with care, compassion, and professionalism.

1. Listen without judgement
   The first step in supporting someone through a crisis is simply to listen. Not all employees will be forthcoming, and many will fear repercussions or shame if they do share. By creating a psychologically safe environment where they feel heard and respected, you allow the conversation to unfold in a way that will allow you to help.  Listening does not mean solving. Ask what they need. Avoid overpromising or reacting too quickly. This is their experience, not yours, and your job is to provide space for them to express it.
2. Tailor your support to the individual
   There is no one-size-fits-all approach. While one employee might benefit from time off, another may prefer flexible hours or a change in responsibilities. Consider what reasonable accommodations can be made, in accordance with HR policies and employment laws. What’s important is that the support feels personal and meaningful, not generic or performative. You will likely want to speak to HR or, in a smaller business, ask for outside advice.
3. Communicate clearly (and privately)
   When an employee’s going through emotional turmoil, one of the most challenging aspects is managing the line between transparency and confidentiality. While you may need to inform certain stakeholders about changes in workflow or responsibilities, the nature of an employee’s crisis should never be discussed openly or speculated about in the office. Establish clear, private channels of communication and check in regularly. Let the employee know what’s being shared and with whom – and always ask for their consent where appropriate. Trust is fragile and you need to protect it.
4. Support your other employees too
   It’s not just the employee in crisis who needs help – often their direct manager, or co-workers will also be feeling overwhelmed, overworked or unsure how to proceed. Offering management training on crisis response, mental health first aid, and compassionate communication can improve outcomes for everyone involved.  Managers are on the front line of employee wellbeing, and giving them the right tools helps avoid missteps that could escalate the situation.
5. Make room in your budget for empathy
   There’s no denying that crisis support can come with financial implications, from offering extra leave to making temporary hires to cover the missed workloads and even therapy for the staff member. But investing in your people always pays off in the long run. This is where your accountant becomes more than a numbers person.
   A good accountant can help you identify inefficiencies, reallocate budget, and plan for contingency resources that empower your company to care for its people without compromising its financial goals.

There’s a thin line between tax avoidance, which is legal, and tax evasion, which is a tax crime. Every taxpayer, corporate or individual, has the right and duty to ensure they don’t pay any more tax than what is legally required – but tax evasion can result in hefty penalties and even jail time.  In this article we establish where the line is, and why it is best navigated with the help of your accountant.

The line between tax avoidance and tax evasion can sometimes appear blurry, especially in complex transactions or fierce tax planning strategies. The comparison below is a good starting point:   

1. What is tax avoidance
   

   Tax avoidance refers to legal arrangements or transactions designed to reduce or eliminate tax liability, without breaking the law.       

   Examples of tax avoidance include:

   • Moving a company into a special economic zone for the sole reason of achieving a lower corporate income tax rate.
   • Timing the sale of capital assets to control the timing of capital gains and losses.
   • Getting your company to pay for a motor vehicle or other expenditure as it may, depending on the circumstances, be taxed at a lower rate.
   • Placing a large amount of your income into a retirement fund to obtain the highest deduction possible.
   • Investing in tax-free savings accounts (this applies to individuals only).
   • Often termed “permissible tax planning”, tax avoidance is legal and accepted. However, when tax avoidance becomes overly aggressive or artificial (i.e., lacking commercial substance), it may cross into what tax authorities consider “impermissible” or “abusive” tax avoidance. This, while not necessarily criminal, may be challenged under anti-avoidance rules such as the General Anti-Avoidance Rule (GAAR).
   • South Africa employs GAAR to counteract tax avoidance strategies that exploit loopholes. These rules allow tax authorities to disregard or re-characterise transactions that have the primary purpose of avoiding tax.

2. What is tax evasion?
   

   Tax evasion is characterised as the illegal act of deliberately and intentionally avoiding paying taxes, either by avoiding paying tax entirely, or by illegally reducing or deferring taxes payable. It can involve hiding or ignoring one’s tax liability by making false representations or statements, or hiding income or information that would otherwise be subject to taxation.

   Examples of tax evasion include:

   • Failing to file required tax returns
   • Making false statements on tax returns
   • Failing to declare income or deliberately underreporting income
   • Claiming personal expenses as business expenses
   • Over-declaring expenses, which may include falsifying invoices
   • Using multiple entities without legitimate business purpose
   • Moving money through multiple accounts to obscure its source
   • SARS uses data-driven insights, self-learning computers, and artificial intelligence to combat tax evasion, and is empowered to conduct criminal investigations into tax offences and work with the criminal justice system to prosecute offenders.
   • Tax evasion can result in severe penalties of up to 200% of the shortfall in tax, plus interest, and even jail sentences of five years or more.           

Best practices for legal tax avoidance

• Stay updated with ever-changing tax legislation to make informed decisions.

• Structure your business operations or transactions in a manner that legally minimises taxes – for example, operating as a sole proprietorship or a private company have different tax implications.

• Engage in permissible tax planning by adhering to all tax laws and regulations, and avoiding abusive tax schemes designed to exploit loopholes in the tax laws. 

• Utilise all tax deductions, credits, exemptions and incentives, including deductions for business expenses, tax credits for certain investments or activities.

• Comply with reporting requirements and avoid penalties and interest by filing accurate tax returns on time.       

• Maintain accurate records of all your financial transactions and tax-related documents to ensure all claims and deductions can be substantiated when required by SARS.  

• Ensure transparency and full disclosure by always providing full and accurate information on tax returns:  concealing information or providing misleading details can easily cross the line into tax evasion.     

Running a business requires leaders to make hundreds of decisions each year. Some of these are small and inconsequential. But others have the power to affect the company’s future, determine the happiness of its customers and impact the lives of all its employees.  Without knowing it, however, each decision-maker typically brings their personal history, biases and experiences to each decision they make. And sometimes this can be very costly. Here are five ways your biases could sink your business – and how to prevent that from happening.

Humans are creatures of habit. We form opinions and sets of actions that we use as shorthand for all future decisions. We become trapped in loops of our own making and fall prey to common human ways of thinking that may save time, but ultimately hurt us. In business, these sorts of cognitive biases can damage relationships, and lead companies down dangerous paths. The sad thing? Most of us don’t even realise they exist. Here are five cognitive biases that could sink your business if you’re not careful.               

1. Favouring evidence that backs our beliefs
   Back in the days of VHS, video rental behemoth Blockbuster was offered the opportunity to buy a start-up that distributed their videos by mail, and were building the infrastructure to stream videos online. Convinced that the video store model was the only way to go, the board rejected the opportunity to purchase Netflix and over the next few years Blockbuster went bankrupt. While it’s tempting to see this as a sign of foolishness, the reality is that all of us are prone to undervaluing data which contradicts our beliefs and favouring that which reinforces it. These confirmation biases can only be overcome by actively seeking out disconfirming evidence and encouraging a culture of robust debate among your employees.

2. Doggedly holding the line
   In 2008, signs began to leak out across the American economy that a large collapse was coming. Banks were overextended and the money from loans was not being returned fast enough – but many large businesses held the line and did not prepare for failure. The information they’d been given for years suggested the loans model worked and they did not adjust their behaviour as the data first trickled, and then thundered in. The result? An economic collapse for the ages.  A 1974 study by Tversky and Kahneman explains their decision making with the anchoring bias. This study showed that even when presented with later information, people’s numerical estimates were significantly influenced by irrelevant initial figures. The first information is given much more weight than later information, even if the later information comes from stronger sources. Luckily this bias is easy to overcome, by simply distrusting the early data – always compare it carefully with what comes later.

3. Too much self-belief
   Convinced their market dominance would carry them through, and unimpressed with the new digital cameras, photographic film manufacturer Kodak continued business as usual in the early 2000s. Despite their position as market leader and an early pioneer, these decisions lead to their eventual complete collapse. Kodak is a clear example of the overconfidence bias, which Bazerman and Moore detailed in their book Judgement in Managerial Decision Making. Overconfidence bias is our very human tendency to overestimate one’s own knowledge, skills, or the accuracy of one’s predictions. In business, this can manifest in risky decisions, such as under-pricing products, over-leveraging debt, or ignoring potential competitors. To overcome this, regularly schedule sessions to evaluate your decisions against the data, and seek outside advice from your accountants and other experts.

4. Don’t follow the Joneses
   Anyone who was alive in the 1990s remembers the Dotcom bubble. Tech companies were absolutely flooded with investment, with little care for the fundamentals from those who were convinced that tech’s bright future would lead to their own financial success. When the bubble burst in the early 2000s, many of those investors found themselves without a penny to their names.  The Dotcom bubble is an example of what’s known as the herd mentality. It describes a cognitive bias in which people have a tendency to mimic the actions of the masses, even against their own better judgement or personal logic. The rule here is simply: don’t do something just because everyone else is doing it. Never blindly follow trends.  This comes with a caution though – while copying others for the sake of it is a bad idea, don’t fall into the trap demonstrated by Sears either. The former retail giant exhibited loss aversion bias by clinging to its traditional brick-and-mortar model and resisting e-commerce expansion for years – ultimately resulting in it filing for bankruptcy in 2018.

5. Place the blame correctly
   In 2008 Lehman Brothers was possibly the largest casualty of the economic collapse. Where many other financial institutions managed to keep their heads above water, Lehman Brothers sank below the waves. Unlike their more successful peers, Lehman Brothers had attributed all of their woes to the external factors of the economic collapse and failed to recognise the company’s own risky investments and poor decision-making as contributing factors.  This error is commonly known as attribution bias. In 2014, Mallett and Monteith explored attribution bias in business settings, showing that leaders often misattribute their company’s failures to external forces, preventing them from identifying areas for improvement. You can avoid this by promoting self-awareness and accountability. Don’t be afraid of asking experts for their input and always encourage regular post-mortems on projects to identify both internal and external factors contributing to their success or failure.

Increased funding allocated in Budget 2025 will enable SARS to zoom in on an estimated R800 billion in unpaid taxes in South Africa, including a substantial so-called “tax gap” of uncollected taxes. For taxpayers, this means more scrutiny, enquiries, verifications, and audits – and more stringent debt collection measures. Here’s how we can help you mind the “tax gap” by maintaining complete compliance and taking immediate action if your tax affairs become the subject of SARS’ scrutiny. 

Today’s work environment is fast-paced, unpredictable and ever-changing. Between the gig economy, retrenchments and the transformations brought about by AI and other technologies, studies are now showing that the traditional 9-to-5 job is no longer viewed as being a stable way of life.  Workers are increasingly feeling insecure. This fear is impacting their mental health –  and in turn, the stability of the businesses they work for. Read on to find out what employers can do to combat these feelings of instability and help foster a sense of security within their organisations.

Workers’ Day acknowledges the contributions of workers and recognises the importance of upholding their rights. But celebrating workers is not just a government initiative. It’s a forward-thinking approach to labour relations that is increasingly embraced by progressive companies around the world.  Here are five reasons why happy workers are a business’ greatest asset. And five simple ways your business can enhance happiness and wellbeing among your workers. 

In the history of business, little has been as effective in making or breaking sales as customer reviews. With Google now placing increasing relevance on tracking and promoting companies with genuine good reviews, this has never been truer than it is now.  What many don’t know, however, is that it’s what you do after receiving a review that makes the biggest difference. Here are five ways you can capitalise on your reviews to improve your business.

According to a recent survey, 91% of people regularly or occasionally read online reviews, and 84% trust online reviews as much as a personal recommendation from a friend. There’s no doubt that reviews are having a moment.

The challenge comes when you learn that it can take as many as 20 good reviews to overcome a single bad one. Little wonder, then, that many companies try to focus on encouraging unhappy customers to remove their bad reviews, while generally neglecting the good ones, save for a short thank you message. This may, however, be short-sighted as using reviews correctly, can change the entire good vs bad formula, strengthen your company, improve sales and improve your bottom line. Here are our tips for maximising those good reviews.

1. Maximise your visibility online       
   Gone are the days when search engine optimisation (SEO) was purely about the words on your website. Google is now working tirelessly to ensure that good companies with great customer service are more visible online. Customer reviews can be used in your online content to add credibility and “expertise” and therefore improve the way Google views your content. But reviews can’t simply be shoe-horned into your site – they must be incorporated in a way that’s justifiable and organic.  Remember, you can no longer simply write your own reviews as Google tracks which reviews are left when and by whom. Real people leaving reviews in a believable way boost rankings – but fake ones hurt them.
2. Boost your conversion rates
   Conversion rates are probably the single most important stat for an online business and your reviews can be used to make a significant impact. Research conducted by the Medill Spiegel Research Center has revealed that displaying reviews across your website has the potential to boost conversions by as much as 270%. Because of the weight users give to the views of others, simply seeing a good review boosts credibility and trust and encourages users to take the next step.
3. Don’t hide bad reviews, use them to boost trust 
   Earlier we spoke about how many companies try to remove their bad reviews. This is not necessary. Everyone’s going to get a bad review from time to time, and your customers know this. Leaving your bad reviews up – along with your clear responses to try and fix the issues – has actually been shown to boost customer confidence. People like to know that if something goes wrong, you’ll do whatever you can to fix it. These bad reviews help them to see that far better than if you simply sweep them under the carpet.
4. Good reviews can lead to better hires
   Your reviews can also be used to attract better staff. A 2024 study by Deloitte showed that 44% of millennials and 49% of Gen Zs consider a company’s values before accepting a job. People want to work for likeable companies. Including a few choice Google reviews on your website can therefore be used to create a more attractive employer brand and therefore lure in more applications, which will help you to find the best-of-the-best.
5. Leverage reviews in the real world too
   Digital reviews almost never make it out of the digital sphere – and yet they can have just as much impact on paper as they do online. Including reviews in sales documents, pitch decks and press releases has been shown to generate credibility and boost trust. There’s also evidence that including reviews in press releases increases the likelihood they will be published at all.