Question 1

What does an accountant do for a small business?

Accepted Answer

An accountant for a small business handles bookkeeping, tax compliance and financial reporting. This includes processing monthly transactions, preparing VAT returns and PAYE submissions, filing annual income tax returns with SARS, and preparing annual financial statements. Under the Companies Act 71 of 2008, every registered company must maintain accurate financial records and prepare annual financial statements. An accountant ensures your business meets all of these obligations and helps you understand your financial position.

Question 2

How much does an accountant cost in Cape Town?

Accepted Answer

Accounting fees in Cape Town depend on the size and complexity of your business. Bizztax offers monthly packages starting from R2 000 per month for basic bookkeeping and VAT returns. More comprehensive packages covering payroll, management accounts and full compliance are available from R3 500 per month. Contact Bizztax for a personalised quote.

Question 3

Do small businesses in South Africa need an accountant?

Accepted Answer

Yes. The Companies Act 71 of 2008 requires every registered company to maintain accurate financial records and prepare annual financial statements. SARS requires income tax returns, VAT returns and PAYE submissions. Getting these wrong results in penalties and interest. An accountant ensures your records are accurate, your submissions are on time and your business is compliant.

Question 4

What does a bookkeeper do?

Accepted Answer

A bookkeeper records your business's day-to-day financial transactions — capturing invoices, receipts, payments and bank entries in your accounting system. Accurate bookkeeping is the foundation of correct VAT returns, PAYE submissions and financial statements. Without up-to-date bookkeeping, your tax returns will be inaccurate and you will not have a clear picture of your business's financial health.

Question 5

What is provisional tax in South Africa?

Accepted Answer

Provisional tax is a method of paying income tax in advance during the tax year. You are a provisional taxpayer if you earn income other than a salary — for example, business income, rental income or commission. Provisional tax is paid in two instalments: the first by the end of August and the second by the end of February. It is governed by the Fourth Schedule to the Income Tax Act 58 of 1962.

Question 6

Who needs to register for VAT in South Africa?

Accepted Answer

VAT registration is compulsory under the Value-Added Tax Act 89 of 1991 once your taxable turnover exceeds R1 million in any consecutive 12-month period. Voluntary registration is available from R50 000. Once registered, you must charge VAT at 15% on taxable supplies and submit VAT201 returns monthly or bi-monthly.

Question 7

What is PAYE in South Africa?

Accepted Answer

PAYE stands for Pay As You Earn. It is the income tax that employers deduct from employees' salaries each month and pay to SARS. Governed by the Fourth Schedule to the Income Tax Act 58 of 1962, employers must register with SARS, deduct the correct PAYE each month, and submit an EMP201 return with payment by the 7th of the following month.

Question 8

What is UIF in South Africa?

Accepted Answer

UIF stands for Unemployment Insurance Fund. It provides short-term relief to workers who become unemployed or cannot work due to illness, maternity or adoption leave. Both employer and employee contribute 1% of the employee's remuneration monthly, capped at the remuneration ceiling. Governed by the Unemployment Insurance Act 63 of 2001.

Question 9

What is SDL in South Africa?

Accepted Answer

SDL stands for Skills Development Levy. Employers whose total annual payroll exceeds R500 000 must pay SDL at 1% of the leviable amount each month. It funds skills development and training in South Africa, governed by the Skills Development Levies Act 9 of 1999.

Question 10

How do I register a company with CIPC in South Africa?

Accepted Answer

Company registration is done through CIPC (Companies and Intellectual Property Commission) via its online portal. The process involves reserving a company name, completing the registration application, preparing a Memorandum of Incorporation and paying the registration fee of R175. Registration typically takes 5–10 business days. After registration, the company must be registered with SARS for income tax.

Question 11

What are CIPC annual returns?

Accepted Answer

Every company and close corporation registered with CIPC must file an annual return within 30 business days of its anniversary date, as required by the Companies Act 71 of 2008. The annual return confirms the company is still active. Failure to file results in deregistration. Annual return fees range from R100 to R3 000 depending on turnover.

Question 12

What financial statements does a small business need in South Africa?

Accepted Answer

Every company registered with CIPC must prepare annual financial statements within six months of its financial year end, as required by the Companies Act 71 of 2008. These include an income statement, balance sheet and cash flow statement. Close corporations require annual financial statements compiled by an accounting officer.

Question 13

Does Bizztax serve clients outside Cape Town?

Accepted Answer

Yes. Bizztax is based in Grassy Park, Cape Town, and primarily serves clients in Cape Town and the surrounding Southern Suburbs — including Wynberg, Claremont, Rondebosch, Kenilworth, Plumstead, Retreat, Ottery, Lotus River and Mitchell's Plain. We also assist clients elsewhere in South Africa on a remote basis using cloud accounting technology.

Question 14

What accounting services does Bizztax offer?

Accepted Answer

Bizztax offers bookkeeping, monthly accounting, management accounts, annual financial statements, accounting officer services, individual and company tax returns, provisional tax, VAT registration and returns, PAYE and payroll, CIPC company registration, BEE compliance and business advisory services for individuals and SMEs in Cape Town and across South Africa.

Question 15

Can Bizztax help me with SARS?

Accepted Answer

Yes. Bizztax is registered with SARS as a General Tax Practitioner and can deal with SARS on your behalf. This includes submitting tax returns, responding to SARS queries, lodging objections against incorrect assessments, applying for penalty remission and obtaining your Tax Compliance Status (TCS) pin.

Accountants in Cape Town | Bizztax Accountants & Tax Practitioners

Accounting & Tax Services in Cape Town

Common questions about accounting and tax in Cape Town

What does an accountant do for a small business?

How much does an accountant cost in Cape Town?

Do small businesses in South Africa need an accountant?

When should a small business start using an accountant?

Does Bizztax serve clients outside Cape Town?

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