MORE THAN JUST SARS: THE FOUR FINANCIAL PILLARS OF BUSINESS

Let’s be honest. When most business owners hear ‘financial compliance’, their minds zoom straight to South African Revenue Services (SARS) like a meerkat spotting a predator. And yes – taxes are important (ask Al Capone). But income tax is just one pillar of your financial house. If that’s the only pillar you’re minding, you’re basically trying to balance a four-tier wedding cake on a broomstick.

 In the real world of sustainable business, four key pillars quietly, but firmly, hold up the house. These pillars are income tax, labour, statutory compliance and (the one you really should value the most) management reporting.

Let’s break them down, Flair style.

1. Income Tax: The Necessary Evil

This one gets all the attention, kind of like the loud aunt at a wedding who’s had too much bubbly. Every entrepreneur knows they need to pay tax, and everyone seems to begrudge it. Change your mindset, taxes are needed to build and support a well functioning society. No matter what your opinion is of what the Government does with those taxes, they are a very necessary evil. Your responsibility is to ensure you are not paying any more than you need to, and that you are taking advantage of all tax benefits available to you and your business.

Here is a different perspective: tax is not just a cost. Handled right, it can be a planning tool – timing expenses, structuring salaries, claiming allowances. T here’s art in the maths. But too often, business owners only scramble at year-end, throwing receipts like confetti and hoping for a miracle.

 Tip: Tax is not a once-a-year emergency. It’s a 12-month strategy. Get ahead, and SARS becomes a partner – not a panic attack. When done right, a lot of doors become open to you, and when done wrong – you simply watch them all close and be slammed in your face.

 2. Labour: Not Just Payroll

Hiring people comes with responsibilities – and no, giving someone a desk to sit at, a computer to work on, and maybe a branded mug and a birthday cake doesn’t count as labour compliance. We’re talking about Pay As You Earn (PAYE), Unemployment Insurance Fund (UIF), Skills Development Levy, employment contracts, leave tracking, and those pesky Department of Labour visits that seem to arrive just when you’ve settled in with a coffee.

 Underpaying or ignoring these obligations is a game of Russian roulette with a department that doesn’t have a sense of humour and holds all the bullets. Build your people and they will build your business. You have a responsibility to provide an environment that protects employees, they are not there to take the risk with you, the same way they don’t get to enjoy the benefits and big profits you may make.

 Tip: Get your ducks (and documents) in a row. Your staff will respect you, your business will run smoother, and you’ll avoid awkward visits from the labour department asking questions you really don’t want to answer.

3. Statutory Compliance:The Admin No One Talks About

Share certificates and registers, Companies and Intellectual Property Commission (CIPC) returns, company resolutions, Broad-Based Black Economic Empowerment certificates, Annual returns, Beneficial Ownership submissions – it’s like a never-ending scroll of homework assignments. But unlike high school, you can’t fake a doctor’s note to get out of them. We see so many clients who have registered a PTY online and think, that’s it – no one issues the very important share certificate that needs to go with it. This is like buying a car and never asking for and collecting the logbook – which is your actual proof of ownership.

Statutory compliance is the glue that makes your business legally visible and credible. Ignore it, and you could be deregistered, fined, or worse – disqualified from tenders, funding, or big contracts because you didn’t tick all these very important boxes. Tip: Set reminders or find a firm that does. Granted, you didn’t start a business to be buried in paperwork but then make sure you delegate this area wisely.

4. Management Reporting: The Underrated Superpower

Ah, the Cinderella of finance. Management reporting is the one no one notices… until it saves the day. Monthly management reports show you the story behind the numbers. Cash flow trends. Margin shifts. Customer patterns. Stock anomalies. It’s the dashboard of your business Boeing and yet so many owners are flying blind, wondering why they keep crashing into mountains.

 Think of it like this: Tax reports tell you what was. Management reports tell you what is – and what could be. Want to scale? Sell? Sleep peacefully at night? Start here. Tip: If you’re only seeing numbers once a year, you’re running your business in the rearview mirror. Bring in monthly management reports and watch your confidence – and profits – grow. Knowledge is power and proactive management will always win out.

In Conclusion: Build the Whole House

If your business is only built on tax returns, you’re missing 75% of the foundation. It’s like only brushing your front teeth and wondering why the rest need f illings when you eventually make it to the dentist. You need to focus on building smart, strong, well-balanced f inancial homes – with structure, insight, and maybe a glass of wine when needed. So next time someone asks if your finances are sorted, remember it’s not just about SARS. It’s about systems, people, paperwork… and seeing the full picture in time to do something about it. Because let’s be honest – no one starts a business just to fill in forms. But with the right f inancial pillars, you can go from chaos to calm… with Flair, of course.

 T: +27 (0)31 207 1572

M: +27(0)76 555 7529

E: heather@flairaccounting.co.za

W: www.flairaccounting.co.za