Business hardships

Business Doesn’t Have To Be Hard. Read These 7 Tips

 If you have been in business for some time, you know how challenging the entrepreneurial journey can be, it can get lonely too. It’s worse if you are a solo entrepreneur or don’t have a dedicated team you work with. In this blog, we will share some tips that will help make your journey a little less of a pain in the butt. 

Running a business shouldn’t take up all of your time, especially with small tasks. Thanks to technology, there are automation tools, and many other business systems you can put in place, that can make your life easier. Which we will get into. These shouldn’t cost you a leg and an arm either, especially for small businesses. 

According to reports and statistics, some of the common reasons why startups fail are due to, but not limited to lack of knowledge, and poor sales and marketing. Let’s get to it below.

7 tips to make running a business easier:

(1) Build cultures: the culture of an organization affects the running of it largely. If you share the same values, beliefs, attitudes, and practices that you live by in your organization, not only will you work well together, but you will get more done. For instance, let’s take it back to one of our examples of the common startup failure reasons stated above – lack of knowledge. If you have a reading culture in your business you get to learn more and ultimately earn more. 

(2) Hire young people: this is practically free. Organizations such as SEDA can lend you, interns, for free. You don’t have to pay them a salary, but mentor them and give them work experience. This can also help you save coins on taxes, this is called Employment Tax Incentive.  In his 2022 Budget Speech, Finance Minister Enoch Godongwana announced an increase in the ETI values from 1 March 2022.

(3) Automate: we can’t emphasize how much time you will save by automating things. From bookkeeping systems, accounting, marketing, social listening, and so forth, these things can save you so much time yet do so much for your business to keep it running smoothly. It is even becoming unnecessary to hire an administrator because these things can be automated, even email responses. Depending on the kind of business you’re in, automate things where you can, while you tackle tasks that need your attention more. 

(4) Use customers as advocates: a happy customer will give you free marketing! You can use this as a strategy. You’d be surprised how easy it is to get people to do stuff, all you need to do is ask. If you are selling products, send them a personalized card and ask them to tag you when they use it. If you’re selling services, ask them to leave you a review on your page or website. Endorsements are effective, but you need to fully satisfy customers.

(5) Tell stories: people love hearing success stories and things they can relate to… which can help you with their confidence in your product or solution. Storytelling is the use of evoking emotions to connect your brand to customers. Be authentic when building your brand, show what it takes, or what it took for your business to get where it is. Share highlights of your business, awards, the evolution of your logo, social proof/client testimonials, and show them before and after service of a client’s success. Take your community along with you on your journey. 

(6) Keep your books updated: you can either do this by setting up software or hiring a bookkeeper to keep your books in check. It can be easy to use business money for personal use, especially if you’re a solo entrepreneur. Poor money management can lead to business failure. Not only does keeping your books up-to-date let you know how much you made or lost, but it also makes things easier during tax season. We have a full guide on this, which we discussed in our Bookkeeping Workshop. Get in touch with us if you are interested in getting the session recording + materials: info@accasesolutions.co.za 

(7) Cut down unnecessary costs: don’t wait until your ship sinks till you save, start now. Saving money is critical for the survival of your business. Cut down on traditional marketing and go digital, stop attending unnecessary meetings and do virtual meetings instead, unless it’s necessary to do so. Partner with other entrepreneurs, creators, or freelancers, in that way you save on costs while getting serviced. This can also take us to our first point – hire interns. 

Let us know if any of these have worked for you, or which ones you are going to try, Feel free to add more in the comment section down below. 

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How to boost your business’s Tax Incentives by hiring young people

We had briefly touched on this in our previous blogs, but let’s get a bit deeper into it. President Cyril Ramaphosa emphasized the role of the government in helping businesses thrive in this year’s State of the National Address (SONA). This is mainly for job creation in South Africa. 

With the unemployment rate in South Africa (as discussed in our previous blog), the need to support small businesses so they grow, and also to encourage entrepreneurship, especially amongst the youth has significantly increased. 

Introducing ETI’s

The good news for businesses, they can utilize the tax benefit by hiring young people. This is called the Employment Tax Incentive (ETI), and it’s said to be one of the most powerful tax benefits out there. ETI essentially reduces your overall Pay-As-You-Earn (PAYE) contribution without affecting the employee’s salary. 

> Employers will be able to claim the incentive for a 24 qualifying month period for all employees who qualify.

> The incentive amount differs based on the salary paid to each qualifying employee and whether the qualifying employee was employed after the inception of the ETI programme. 

How ETI works

Simple example:

If you hire 4 young people with salaries of R5000 per month, the total monthly payroll for all 4 employees would be R7500 from your overall monthly PAYE liability in the first 24 months in which the employee qualifies.

This can be done on your payroll system, and your employee’s salary will totally be unaffected. 

NB: The value of the ETI the employer may claim depends on the value of the monthly remuneration paid to the qualifying employee. If the employee has worked less than 160 hours in the month, the remuneration amount must be ‘grossed up’ to 160 hours per month to calculate the value of the ETI. The amount can then be calculated and be ‘grossed down’ in the same ratio.

Source: SARS

The math is simple, employers are rewarded for hiring young people, in return, they gain skills and experience. The private sector grows, and the economy grows. 

Who qualifies?

In his 2022 Budget Speech, Finance Minister Enoch Godongwana announced an increase in the ETI values from 1 March 2022.

An employee qualifies for the ETI if he/she:

  • works for you assists in conducting business, and receives remuneration for their work,
  • is documented in your employer records according to the provisions of section 31 of the BCEA,
  • earns at least the minimum wage,]
  • is between 18 and 29 years old, or is employed in a special economic zone, and
  • has a valid South African ID, a valid asylum seeker permit, or an ID in terms of Section 30 of the Refugees Act.

An employee will not qualify for the ETI if he/she:

  • is a domestic worker,
  • is a “connected person” to the employer,
  • spends more time studying than working (unless the employer and employee have entered into a learning programme as defined in Section 1 of the Skills Development Act, or
  • earns a monthly remuneration of R6,500 or more.

We hope this helps you somehow, feel free to contact us if you need any more clarity. You may also refer to our blog about other effective and legal ways to avoid paying tax in South Africa: https://accasesolutions.co.za/2021/06/17/how-to-avoid-paying-tax-as-a-small-business-in-south-africa/

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How-To Plan your Business Finances in 2022 |

Most people can agree that the past two years have been unlike any other in so many aspects including, but not limited to finances. Businesses also took a head knock, especially those that were not on digital platforms. If anything, we’ve all learned that life can be unpredictable, no one would have thought we would be battling a global pandemic. 

Some also think that 2021 was even more challenging from day 1. What are your thoughts on this? Let us know at the end of the blog. For now, let’s plan our business finances. Whilst many things are out of our control, we are still in charge – let’s plan and prepare! 
Some also think that 2021 was even more challenging from day 1. What are your thoughts on this? Let us know at the end of the blog. For now, let’s plan our business finances. Whilst many things are out of our control, we are still in charge – let’s plan and prepare! 



3 tips to plan your business finances in 2022: 

Before anything, you need to set goals and objectives. Just to enlighten you: a goal is a desired result that you envision and commit to achieve, while an objective is a strategy or implementation steps to attain the identified goal. 

Start here: How much money do you want to make in 2021? (Goal)

Secondly: How many products do you have to sell, or clients do you have to serve to make that amount? (Objective) 

Have you had that figured? Let’s get started; 

Budgeting – this can never get old, it helps you navigate where every rand goes. “budgeting is knowing where your money is going, and not wondering where it went”.

To help you get started, here are six steps to create your financial plan:

1️⃣ To start off, think about what you want to accomplish and ask yourself… Do I need to expand? Do I need more equipment? Do I need to hire more staff? Do I need other new resources? Most importantly, how will my plan affect my cash flow?

2️⃣ Create monthly financial projections by recording your anticipated income based on sales forecasts and anticipated expenses for labor, supplies, overhead, etc..

3️⃣ Through the year, compare actual results with your projections to see if you’re on target or need to adjust. Monitoring helps you spot financial problems before they get out of hand.

We wrote a full blog on this, see here: https://accasesolutions.co.za/2021/05/27/plan-to-succeed-finance/

Pricing – pricing directly defines your positioning – it tells people where you are in your business. Do you have to increase your prices? Let’s dive a bit into this: 


Although this is not compulsory, it’s worth considering. Sometimes demand outstrips supply, there’s inflation and all those kind of things to consider. Review your prices and consider raising them. Take a solo entrepreneur that runs a consulting business for instance – attending workshops, seminars, taking online courses here and there – that’s a lot of knowledge for someone to charge the same rate year in, year out. 

The more you learn the more you earn, it’s not clichè. Businesses charge for their value, not cost of production, etc. But it’s important to remember that whatever you do, have your target customer in mind. Don’t overprice. 

Things to consider when pricing your services:

1. Figure out your service delivery costs – fixed and variable costs

2. How many hours it takes you to deliver your service

3. Taxes

4. Account for dry season and holidays

5. Most importantly, profit. 

…for products, you might want to consider:

1. Cost of production/manufacturing 

2. Cost of delivery

3. Market price 

4. Taxes

5. Profit 


A few other things many people consider this:

* What is everyone else charging? 

* What is the top person in your industry charging? 

* Where do you fall?

Savings and investment – we preach this all the time, but is it ever enough? Would your business survive another hard lockdown? 

There are 3 most important things to take into serious consideration in 2022: savings accounts; emergency account, investment, and insurance (if need be). 

Savings and investments are important for your personal and business reasons. Savings means keeping your money, investment means growing your money: both are important. With savings, you can have specific goals attached to it – this also helps decline you to be committed. 

When it comes to emergencies and/ or unforeseen circumstances, many like to say that your emergency account should at least have 6 months of your monthly earnings for unforeseen circumstances: if you earn R10 000 per month, your savings account should at least have R60 000. 

The pandemic taught us the importance of all these accounts, we never know what will hit us tomorrow. When it comes to insurance, it really depends on the type of business you have, or even where you are (stage) in your business. These are things you might want to consider factoring in, in 2022. They go in your budget and come first. 

Here’s a comparison of different banks and institutions to help you make decisions for 2021:  https://www.google.co.za/amp/s/moneytoday.co.za/best-savings-accounts/amp/ 


Let us know your thoughts – opinions and comments, feel free to add your tips as well!

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RETIREMENT ANNUITY | RETIREMENT PLAN

What’s your plan after Retirement? How are you planning to continue living your comfortable lifestyle even after retirement? 

This is where Retirement Annuities come in. It is a lifetime guaranteed monthly or annual income for a retiree until their death. You might be asking how this is different from a Pension Fund or Provident Fund? Let’s break it down for you before we get any further… 

Different types of retirement vehicles:

Pension fund – You can only join a pension fund, through the company that employs you. Your money is managed by the trustees of the fund and your contributions as well as your employer’s contributions are tax deductible. 

Provident fund – with provident fund, you are able to withdraw the entire savings amount as a lump sum when you retire. 

Retirement annuity fund – a retirement annuity fund is independent of your employer, it allows you to choose what funds you invest this money in and you can also make monthly contributions. 

Retirement Annuity Plan 

Retirement Planning is important because it enables you to invest your money for a time when you will no longer be working but want to continue living comfortably with regular income.

However, this is barely ever enough to guarantee a comfortable retirement, simply because the value of money changes over time due to factors such as inflation and interest rates – which is why it is imperative that one makes additional contributions to their retirement plan, over and above the employer’s contribution. 

For example

Someone who’s been contributing R300 per month with their employer doing the same over the past 10 years, that amounts to R600 total contribution per month. This means that this person has saved R72 000 over the past 10 years. If this person continues to work for more than 30 years, given that nothing changes, a contribution of R600 per month over the next 30 years equals R216 000. Adding this to the R72 000 that was saved equals R288 000. 

Disclaimer: this amount does not take into account inflation and interest rates.

Retirement annuities can be taken up as an additional investment plan for retirement which will guarantee you fixed or variable payments over time during your years of retirement.

Over and above your Retirement Annuities, there’s a few things you can do to ensure you still live a comfortable life even after retirement;

1️⃣ Start saving and investing now.  Try to take up a minimum of 10% of your income and put into your savings and investments and increase this as your income increases over the years. You can also automate this process by creating debit orders so that the money is deducted automatically from your account on payday. It’s a great way to grow your wealth.

2️⃣ Adopt healthy lifestyle choices. Your mind, body and income are wealth-building tools. Don’t destroy them with unhealthy and expensive habits and addictions that are expensive to treat.

3️⃣ NEVER cash out your pension funds when you change jobs, rather transfer it to your new employer’s pension fund.

We have pretty much covered anything, you can look up different companies that offer different Retirement Annuity investment plans, compare and pick one that makes more sense to you.

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All about NPOs in South Africa

We have touched on Public Benefits Organizations not so long ago on one of our #FunFactsWednedays video, let us to continue this chat. 

What is an NPO?

We cannot assume you know, let’s get to understand what an NPO is. An NPO is a Nonprofit Organisation that plays a significant role in society, they take responsibility of the social and development needs of the country.

How to get started: 

Just like any other business/organisation, there must be intent or purpose of starting. Start here: 

1️⃣ Define your goal – before you could even register, you just at least know what your NPO will stand for. Knowing your WHY is important, it will help you navigate things more especially in cases where you need to go back to the drawing board. What exactly do you hope to achieve once you start the organization? Read more: What exactly do you hope to achieve once you start the organization?

2️⃣ Choose your board of Directors – selecting management of the NPO is probably the most fundamental step. Bring in like-minded people on board, it’s even better to get people from different industries who could come in with different perspectives during different situations. 

3️⃣ Draft your memorandum – this is important as it proves your intention to register the organization as a “not-for-profit” company – followed by information about how the organization would be governed, owned, and other important things to note therein.

Lastly, register. 

About registering your NPO

You can submit your non-profit organisation (NPO) application at your nearest provincial  social development office or a local South African Revenue Service (SARS) branch office. 

Benefits of registering is that its certificate:

  • improves your credibility and increases funding opportunities
  • it allows your organisation to open a bank account
  • helps your organisation with tax incentives.

The prerequisites of registering is that you must be one of the following:

  • non-governmental organisation (NGO)
  • community-based organisation (CBO)
  • faith-based organisation (FBO).

Do NPOs pay tax? 

However these organisations are “nonprofit”, they do not automatically qualify for tax exemption, the organisations that meet the requirements set out in the Income Tax Act, 1962 must apply for this exemption. Only IF the exemption application has been approved by SARS, the organisation will then be registered as a Public Benefit Organisation (PBO) and allocated a unique PBO reference number. 

These organisations can issue section 18A certificates – which allow for tax deduction to parties who make donations to such organisations. This becomes an attraction to donors because they get to enjoy these tax benefits therein by making donations to your organisation. 

As a member of a Public Benefit Company/Organisation, familiarise yourself with the conditions of the section 18A or contact Accase Solutions and we will gladly assist: 

✉️: info@accasesolutions.co.za

☎: 0615238833

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Bookkeeping Guide

Let’s not assume you know, and take it from the top. 

Bookkeeping is the recording of financial transactions made by a business, this means keeping track of what your business spends and what you receive. The  transactions would be recorded in daybooks, cashbooks, or journals, you can also use a spreadsheet program like Microsoft Excel.

Do you need a bookkeeper for your business? 

You can either do this by setting up a software, or hire a bookkeeper to keep your books in check. A Bookkeeper’s responsibility is to record, classify, and organize every financial transaction that is made throughout business operations. 

Amongst other reasons, one of the reasons why some startups fail is due to the poor management of money: sole business owners mostly can relate. It gets a bit challenging to separate business finances form personal finances, making it harder to account for some of the money that comes in, and goes out of the business because no one is holding you accountable for anything. This is where bookkeeping comes in. When studied thoroughly, you can see some of your spending habits which you need to change.

3 reasons why you need bookkeeping:

  1. To reflect on whether you are spending more than you make, vise versa. Moreover, bookkeeping enables you to seamlessly analyze your expenses, and adjust your budget, if need be. You will have a record of all your financial information you may need in a case where you want to plan or budget for the future. 
  2. You can curate accurate tax returns. Tax preparation can be a stressful season for small business owners, this is where bookkeeping comes in. Instead of looking through a pile of documents to get the required information, bookkeeping ensures that this information is well organized beforehand.
  3. We have mentioned before, cashflow is one of the struggles small businesses have. Bookkeeping will help you mitigate that challenge by keeping track of the cash going in and out of your business. Having this kind of information will give you the confidence and peace of mind you need to make financial decisions. 

Bookkeeping: How-To

  1. Record your sales (in a cashbook/spreadsheet).
  2. Note down every business-related purchase (keep proof of purchase).
  3. Regularly cross-referencing your business books against your bank statements to check that the transactions and balances match, A.K.A Reconciliation. 

Other things to note…

  1. Accounts receivable, i.e. issuing invoices and making sure they’re paid, and accounts payable, i.e.paying bills on time.
  2. Payroll (paying employees). 


Bookkeeping software

There are many small businesses that use online bookkeeping software to speed up the job, this also cuts down on human data-entry errors and saves time. The benefits of these tools include, but not limited to: automatically pay bills, send automated invoice reminders to people who owe you money, and allow you to check cash flow from your phone. 


Here are 3 softwares you can check out:

1️⃣ Sage 

2️⃣ Xero 

3️⃣ QuickBooks


I’m conclusion…

If you are too much of a busy for bookkeeping for your small business, then you can find someone to do it for you; outsource or hire. We have an article on what’s the best option between the two, again this depends on a number of things. If you wish to get a bookkeeper for your business, look no further: Accase Solutions would love to assist! Reach us here: 

 ✉️: info@accasesolutions.co.za

☎: 0615238833

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Savings: 5 Ways To Improve Your Financial Health.

Let’s take it back a little, Savings Month is more than just a hashtag or buzz. Everyone was pumped up about it but above the hype, it was to raise awareness. Let’s break it down. 

[Background] What is Savings Month? 

Savings Month is a campaign by the South African Savings Institute (SASI) to raise savings awareness nationally in July annually, and the main objective of the campaign is to bring together financial experts to provide insights on savings through the #waystosave financial education initiative that:

  • Promotes debate around key aspects of saving
  • Raise awareness of the benefits of short, medium and long term planning
  • Build relationships with key partners to leverage future opportunities
  • Get consumers to move from ennui into action


2021 Theme

SASI CEO Gerald Mwandiambira said that in 2021, the focus is on driving awareness around how savings knowledge must be understood and accessible in more South African languages. Everyone can find ways to save in their own language. 

“If you talk to a man in a language he understands, that goes to his head. If you talk to him in his own language, that goes to his heart.“ ~ Nelson Mandela 

Now more than ever – amid the pandemic, it’s critical to be money smart. Report by the SARB Financial Stability Review shows improvement in household savings, but also shows we can save when under pressure. It is important to also note that South Africa still has one of the lowest Household Savings Ratios in the world. 

In our increasingly tough economic environment we need to find ways to save and avoid the credit trap. We looked at saving by cutting costs on our blog on How To Cut Costs In Your Business, now let’s look at how you can use your money wisely to improve your overall financial health. 

5 steps to improve your financial health:

1️⃣ Attach yourself to a savings goal 

Although it’s a good thing to have big goals/dreams, it’s always wise to break it down to smaller bits. It’s motivating as it doesn’t seem far fetched. Set small, medium and long term goals. 

2️⃣ Draw a budget, including savings 

It is said “A budget is telling you where your money goes instead of wondering where it went”. Now the question is, do you know where your money goes? 

Just to add on popular advise that you to save at least 10% of your income towards your savings, we advise it is the first thing you do before spending.

 

3️⃣ Automate your savings

You can discuss this with your bank, or use apps invented to automatically deduct money from your money – into your savings account every month. Apps like 22seven, Moneysmart, My Financial Life, and many more! 

With FNB for instance, you can schedule recurring payments into any of your accounts like savings account, and even your credit card. 

4️⃣ Track to improve your bad spending habits 

There’s a method some/most people use to do this…where you print out your monthly statements to see where most of your money goes. 

This does not only help you navigate where your money goes, but it also helps you see where are you WASTING your money. Like eating take aways a lot, or frequently purchasing airtime via cellphone banking when you can find a reasonable data plan that works for you. 

5️⃣ Live within your means 

There’s nothing more important than this. You may be earning the same salary with your colleagues, but your responsibilities may not be the same and therefore you can’t spend the same… like buying lunch from the cafeteria everyday, or going out for drinks every Friday night. 

It’s important to focus on your budget and financial goals, don’t go where the wind blows or your money will finish just like that.  Focus. 

We hope these help you in some way, we would love to hear how you save money and stay committed. 

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How to avoid paying tax as a small business in South Africa

Taxes? There’s no running away from it! Oh no wait, not only will it catch up with you but the new law says you are liable to jail time! But of course, there are legal ways to reduce taxes. Read on…

Firstly, let’s understand the difference; when you conceal (hide) income or information from tax authorities, it is called Tax Evasion and it’s illegal. Legally reducing your taxable income is called Tax Avoidance.

All business owners have asked themselves this question at some point, “ how can I reduce my taxes?”, if not having to pay tax at all. Look, not registering your business is not a way to run away from paying tax, you are running your business as a sole proprietor and still have to pay taxes, if not more. We’ve covered this before, refer to this blog: https://accasesolutions.co.za/2021/03/16/can-sars-tax-you-even-if-your-business-is-not-registered/

Deliberately understating sales or overstating expenses is also tax evasion so that’s not a strategy. Tax evasion is considered a punishable criminal offence and can have the consequence of penalties. A good tax avoidance strategy is if you use different ways to pay lower rates when it comes to taxes without breaking the law. 

Two (2) guaranteed strategies to legally avoid paying tax: 

1️⃣ Hire young job seekers

When you hire youth (18-35), you get ETI(employment tax incentives) for the first 24 months of the person’s employment (subject to terms).

These incentives you can apply towards PAYE that the company has to pay. For example if your total PAYE payable for the month is R3500 (for every employee in the company), but due to that one young person you hired, say you get ETI worth R1000 every month (this figure differs based on terms, as mentioned above. Then the company will only pay PAYE of 2500 instead of 3500).

2️⃣ Donate to a SARS registered charity 

According to SARS, donation does not have to take the form of money – it can include a physical asset or something that has a deemed value. Donations tax is calculated at a flat rate of 20% on the value of the donation up to R30 million, and at a rate of 25% on donations over and above R30 million. However, Sars makes provision for a donations tax threshold of R100 000 below which no donations tax is payable. Meaning you can make multiple donations throughout the year on a tax-free basis as long as the cumulative total does not exceed the R100 000 threshold.

Although passing your personal expenses through business has very limited personal advantage (since there’s not much you can buy), but you can’t buy what doesn’t make sense to your business. But you may also take advantage of this. For instance; if you are in a type of business where you use your phone to create content, you can buy the latest iPhone 12 and register it through your business. It makes sense because you do make use of a cellphone to deliver your service at best. 

Some key components to remember when planning and avoiding TAX:

❇️Timing 

❇️Gross income

❇️Income or capital 

❇️Deductions 

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Cashflow Management

Let’s talk money!

Have you ever heard it being said “if you can’t manage R1000, you won’t manage R100 000”?

Yup, that’s it! Managing your cash flow is basically tracking how much money is coming into, and out of your business. However, profit does not equal to cashflow. Cash flow is one of the most important components that makes the business successful, like many say…it is the blood that keeps the heart of the kingdom pumping! 

Businesses that have more cash going out more than it comes in completely die or get into debt they could have avoided. 

Back to Basics. 

You should be tracking your cash flow either weekly, monthly or quarterly. There are essentially two kinds of cash flows:

1️⃣Positive cash flow: when money coming into the business through sales for instance, is bigger than the money leaving business by means of salaries, expenses, etc.

2️⃣Negative cash flow: when money leaving the business account is greater than the money coming in. This screams TROUBLE for the business. 

Understanding cashflow 

Simple example: company x renders your services in May, and you invoice them on the 31st of May. Company x only monetise the invoice in around June-July, whilst you had salaries to pay. Thus cash outflow exceeded cash inflow in May. If many other customers continue to do this, you can almost see how your company could run into cash flow issues.

The cash flow statement basically records all of the organization’s cash inflows and outflows, and includes cash from operating activities. The cash flow statement is divided into three parts: investing, financing, and operating activities. Failure to manage this cash can lead to problems. 

We have mentioned the poor cash management may lead to cashflow problems or bankruptcy, but here are some of the causes:

1️⃣Poor understanding of the cash flow cycle – not having a clear understanding/ timing of cash inflows and outflows from the business. E.g. when to pay for accounts payable (what you owe to suppliers),etc.

2️⃣ Lack of understanding of profit versus cash – a business can be generating profits on its income statement and be burning cash on the cash flow statement.

3️⃣ Lack of cash management skills – it is important to acquire the necessary skills to manage your finance. If you are looking for this service, do get in touch with us! 

As they would say, successful financial management involves balancing 3️⃣ elements:

accounts receivable (what you are owed by the customer), accounts payable (what you owe to suppliers), and shortfalls (the amount of money you owe that exceeds your available funds). Make sure  one element doesn’t overtake the others. 

If you can’t afford to pay someone to do this for you, you can do it by yourself. Here are 7️⃣ tips to manage cashflow:

1️⃣Have an emergency fund 

2️⃣Encourage early payment from clients 

3️⃣Put cashflow over profit 

4️⃣Assign someone to monitor your cashflow 

5️⃣Drive and/ or boost sales 

6️⃣Reduce expenses where possible 

7️⃣Finance purchase orders 

An example..

Plan to Succeed: finance

Have you heard the saying, “if you fail to plan, you are planning to fail“? COVID19 is here to prove to us that it’s no cliche! Many are becoming more aware of their financial wellness, and cautious about planning for the future (unforeseen events). Would R10 000, R20 000 have been enough to keep your bakery business amid the national lockdown? It might sound like that’s not a lot, but in difficult economic times/dry seasons, every cent counts.

The first most important step is to set specific short, medium, and long-term financial goals/targets. These goals can include saving up for property, making sure that you are adequately financially provisioned for unforeseen events, and so much more. This process is called financial planning.

A financial plan is obviously different from your financial statements. Here, you make projections for the coming months/years, forecasting income/profits. Hire a qualified and licenced financial planner who will assist you in assessing every aspect of your business finances to help you design and regularly review your financial plan as your business grows.

At Accase Solutions, we offer Financial administrations services, Management Of Cashflow and Budgeting. To get to the bigger goal, you need to hit the smaller targets. Let’s break it down:

Budgeting is simply balancing your expenses with your income, creating a plan to spend your money. This spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. 

Cash flow management is basically tracking how much money is coming into and out of your business. This helps you predict how much money will be available to your business in the future.

financial administrator is responsible for managing the accounts receivables and payables of the organization.

…moving right along…

To help you gets started, here are six steps to create your financial plan:

1️⃣ To start off, think about what you want to accomplish and ask yourself… Do I need to expand? Do I need more equipment? Do I need to hire more staff? Do I need other new resources? Most importantly, how will my plan affect my cash flow?

2️⃣ Create monthly financial projections by recording your anticipated income based on sales forecasts and anticipated expenses for labor, supplies, overhead, etc..

3️⃣ Through the year, compare actual results with your projections to see if you’re on target or need to adjust. Monitoring helps you spot financial problems before they get out of hand.

✳ If you don’t have the expertise, consider hiring an expert to help you put together your financial plan.

Accase Solutions is registered with the IAC, Institute of Accounting and Commerce as a Certified Tax Practitioner since registration of Accase Solutions.

Practicing number: PR0100503.
Get in touch with us, a consultant await your call 📲😊