A – Z of Accounting | Basics of Accounting

First things first, Accounting is the practice of recording and reporting on business transactions. This helps you see how well your business is performing, in comparison with your expectations. 

Accounting methods 

Cash Accounting

Expenses paid and income received is accounted for when cash flows(when cash is paid or received)

Accrual Accounting

Expenses and income are accounted for when incurred

GAAP suggests Accrual Accounting. It portrays more accurate records

We touched a bit on this topic in our Bookkeeping workshop, here’s a skit:

Record Keeping

To enlighten you, this means setting up accounts in which financial information is stored. Accounts fall into the following classifications:

•Assets: business valuables, help the business make more money. E.g. product design 

•Liability: obligated to be paid by the business, they take money out of the business. E.g. loans 

•Equity: ownership of assets that may have debts or other liabilities attached to them. Eg. shares

•Revenue: this is the amount billed to customers in exchange for the delivery of goods or provision of services.

•Expenses: the cost of operations that a company incurs to generate revenue.


If you own a company, you should set up separate accounts for banking, credit cards, etc. Don’t buy business supplies with your personal credit card. Organize your accounts and protect yourself and keep these two separate. Amongst other reasons, this will help you if any tax or legal issues arise (might depend on your business structure). 

These transactions are recorded within the business’s accounts by the accountant. Key transactions include:

✅The purchase of materials and services from suppliers.

✅Selling goods and services to customers. (Send invoice to customer) 

✅Receive payments from customers. 

✅Pay employees. (subtracting tax and other deductions, resulting in net salary).


Also known as Bookkeeping, recording all transactions that occur in the business account. Amongst other reasons, this helps you budget, know the financial health of your business, and prepare you for tax season. The most common books are Income statements, Balance sheets, and Cash flow statements. 

Just to expand the above mentioned:

Income Statement – it presents all revenues and subtracts all expenses. It essentially measures the ability of a business to attract customers and operate in an efficient manner.

Balance Sheet – it presents the assets, liabilities, and equity of a business as of the end of the reporting period. This can also determine the ability of an organization to pay its bills.

Statement of Cash Flows – it presents the sources and uses of cash during the reporting period. It is especially useful when the amount of net income appearing on the income statement varies from the net change in cash during the reporting period.

Another thing to look at is Budgeting and Forecasting. This has much more benefits other than getting funds from the bank or investors. Planning your finances helps you keep a healthy relationship with your money/accounts; thus helping you make better financial decisions in your business. Keep it realistic and achievable. 

Should you need assistance or have any questions regarding accounting, do get in touch with us here: 

📧: info@accasesolutions.co.za

☎: 0615238833


4 Business Financing Options In South Africa | 2022

Although there are various ways or rather businesses that do not need financial assistance to launch/kick-off (which the majority of established businesses in South Africa did not need), some businesses cannot be launched nor can they survive without start-up capital. In this blog, we will be talking about substantial sources of financial aid and opportunities in South Africa. 

  1. Government grant funding

This is the most popular type of funding, as it does not need to be repaid. It’s worth noting though, the application process is pretty intense. What can help enhance your chances of securing funding is if you show how your business will improve the lives of others through employment, solving a need, or contributing to economic growth.

Some well-known programs you can check out:

National Youth Development Agency (NYDA)

Youth Pipeline Development Programme

Black Industrialists Scheme (BIS)

Technology Innovation Agency (TIA)

Small Enterprise Finance Agency (SEFA)

This type of funding is best suited for black-owned, youth-owned, and female-owned businesses.

  1. Equity funding   

This is where the investor takes an ownership percentage of the business in exchange for funding. There are no monthly interest repayments whatsoever. However, this works best when you want to expand. It is not impossible to get it when you are just a start-up, although it is more challenging when you have no track record of sales whatsoever. Sometimes private equity funders are more interested in growing their investments. 

With Equity Funding, investments are paid back in two ways:

· Paying dividends when the business makes money. (percentage of profits to be outlined in agreement contract). 

· Sale of shares. Investors eventually ‘exit’ the business. The goal of every investor is to make more from their shares than they initially paid for them.

This is basically a partnership. To find these kinds of people, either approach people with common goals/mindset or a business-minded person you know might be interested. To win this kind of proposal, it’s important to make sure they see the value and ROI.  

  1. Venture capital funding

Unlike personal equity funders, venture capitalists actually fund start-ups and mainly focus on making money from your business. This means that they are likely to invest exclusively in businesses that can provide good returns on their investment.

Be careful with venture capital though, it can be very expensive funding, especially in a case where your business is still in the start-up phase with a low valuation – you may end up giving a high percentage of ownership away in exchange for funding. 

Here is a list of 2 prominent venture capitalists:

AngelHub Ventures

Edge Growth

  1. Personal debt finance

This is the use of personal means such as credit cards, home loans, or even your pension fund, to fund your business. The nice thing about this option is that you have full control of your money and business, the downside to it is that your business failure will be a big blow to your personal finances.

Every type of financing has its downsides, do thorough research before going with any option. Find out what they stand for and what they are trying to achieve. As mentioned, it’s also important to make sure you have a shared values and vision. Let us know in the comments how you raised capital to start your business.