Bookkeeping is not admin you do for SARS. It is the only way to know whether the business is actually working.
Separate the accounts first
A dedicated business bank account is the single highest-value thing you can do. Mixed personal and business transactions make records unreliable, claims unprovable and reconciliation painful.
Nothing else on this page works properly without it.
What to keep
- Sales invoices issued
- Supplier invoices and receipts
- Bank statements
- Payroll records
- Contracts and agreements
- Asset purchase documents
Five years is the retention requirement. Digital copies are acceptable, and a photograph of a receipt filed monthly beats a shoebox.
The monthly routine
- Record income and expenses
- Reconcile to the bank statement
- Chase unpaid invoices
- Set aside VAT and tax
- Review the numbers
An hour a month done consistently prevents a week of reconstruction at year end.
What the numbers should tell you
| Question | Why it matters |
|---|---|
| Am I profitable? | Revenue minus costs, not money in the bank |
| What is my gross margin? | Whether pricing works before overheads |
| Who owes me money? | Debtors are the most common cash flow killer |
| How concentrated are my customers? | One client at half your revenue is a risk |
| Can I cover next month? | Cash position against committed costs |
Profit is not cash
A profitable business can run out of money. If customers pay in 60 days and suppliers want 30, you fund the gap. Watch cash separately from profit.
When to get help
When you register for VAT, when you employ people, or when the admin is consistently taking time you should be spending on work that earns. That point usually arrives earlier than owners expect.
Stop chasing your own numbers
Monthly bookkeeping, VAT and payroll calculations, management reporting and a financial health score. From R1,200 a month.
General information, not tax advice. Thresholds, rates and deadlines change. Confirm current requirements with SARS or a registered tax practitioner before acting.