Small Business

[Pap_sak]

One of my many mistakes was outsourcing the books. Should really have made the effort to do it myself as not only would I have saved a fair amount (for me R600p/m for 6 years = R43200 let's not even talk about if I had invested the money) - I would probably also have done a better job (who cares more about the business?) and finally, and most importantly, have had a better grasp on the financial side - which I did let slide.

Maybe paying someone that knows to set up the books and paid hourly when needed would but the owner doing the bulk of the work would be good for many small business.

[Newretailer]

I couldn't agree more, Papsak. I finally did this last year. I went to Bonsai Business Services for training and realized how much my accountant messed up in previous years.

[Blurock]

A Good accountant is a valuable asset in a business. A competent person can take over a lot of mundane tasks which allows the owner to spend his time more effectively. It is also important that the accountant oversees compliance to avoid penalties, but to also see that you take advantage of any possible tax breaks or refunds.

Do not try to take short cuts and appoint a bookkeeper if you need a proper accountant. The wrong person can cost you a lot of money in costly mistakes and missed opportunities. The onus is still however on the owner to check and to get the right reports to verify figures. There is no such thing as "leaving it to the accountant" because "I do not understand". It is your business. Take control!

[mosescapetown]

WOW.. love this thread..

Wynn makes a fantastic very valid point. One we have raised with many officials in the past.

The government wants and encourages new business an entrepreneurs. But they "RED TAPE" new start-ups and small business to death. I am also very opposed to big(and medium) businesses "pushing" small business into VAT compliance. They gain or loose nothing at all. its merely different accounting. they do not get the idea of you never paid VAT so no need to try claim VAT....

Big business and government have a responsibility to not only look after themselves but help promote, support and build up small business. we have many GREAT businessman in this country but they are drowning in RED TAPE and never reaching true potential.

My 2 cent.

[SilverNodashi]

One of my many mistakes was outsourcing the books. Should really have made the effort to do it myself as not only would I have saved a fair amount (for me R600p/m for 6 years = R43200 let's not even talk about if I had invested the money) - I would probably also have done a better job (who cares more about the business?) and finally, and most importantly, have had a better grasp on the financial side - which I did let slide.

Maybe paying someone that knows to set up the books and paid hourly when needed would but the owner doing the bulk of the work would be good for many small business.

This is probably one of the hardest lessons to learn in any business, especially a small business / startup who cannot afford a full time accountant.

[Houses4Rent]

I have an accountant, the third one so far. I just give him my spreadsheets and makes AFS out of them. Then I question everything which does not make sense to me. By doing that I often find mistakes he made and get a much better understanding myself. Practise makes perfect.

[john morley]

I like the IDEA of SMALL BUSINESS - I have been in that arena all my life...... Still AM. .....It has served me well ..... given me a very enjoyable life, and continues to do so.
I like everything to be simple ... easily manageable ..... and enjoyable .... WHY CHANGE

[adrianh]

I like everything to be simple ... easily manageable ..... and enjoyable .... WHY CHANGE

I learned this lesson the hard way. I am too doff to manage a big operation. It's much better for me to keep it small, within my management abilities (which is near non existent) and within arms reach.

[adrianh]

I must apologize for not saying this earlier:

Thanks for your support!

[wynn]

This in today's 'Pete's Weekly'
I can see the reasoning but if you have a small (I mean small) business can you really afford an accountant?

"Accounting, Marketing, and Tax...
December 2, 2015

I am the kind of guy who does not like forms. When a form asks me for my name I break out in a sweat. What do they really want, I worry? All three of my names or just two. But mostly, why do they want it?

I had an interesting life-episode back in the early nineties when every form I ever signed turned out to be a guarantee. And that took a decade to unwind. It kinda stays with you.



And so I do not like doing the accounts for my business. I want the reports, sure. But I do not want to process the data, and then complete the forms that the govt wants so that they can take their share. And worse, punish me for what they perceive to be errors.



Accountants in Norway charge about R4000/month to process 50 entries per month. That kinda hurts.



I discussed this with both the firms I have used in the past year. (One to complete the 2014 work and a new one to do this year's work.) In both cases they gave much the same answer.



They asked how long it might take me to do the work myself. I suck at accounting, and I reckoned I would need about two hours each week to file it neatly and complete and submit the VAT returns and the annual tax return. That's about 100 hours each year of extreme discomfort and stress.



They asked how much I know about Norwegian business rules. For instance, where the shortcuts are or where the hidden savings are. I know almost nothing.



They asked what I could do with those 100 hours if I used them to do work that I enjoyed, like marketing. (These Norwegians are wilier than they look.)



Two hours each week devoted to selling or marketing would bring in at least 100 new clients each year. This would total almost 12 times the fee said accountants were charging. 100 new clients each year would be growing like gangbusters, while a completed tax return, no matter how well I might do it, represents no growth at all.



They suggested I leave the books to them while I get on with other work. I no longer see it as a grudge expense.



I raise this gently because having an accountant in background is like having a marketing team in background. Background support to keep a constant flow of prospects knocking at the door allows each of us to get on with selling - which is our only path to enough growth and enough profit to build reserves to survive the troughs.



I do this kind of work for 160 small business owners and now that my accountant is doing all the real work I have time to help you with your marketing.



Warm regards


Peter Carruthers"