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MORE THAN JUST SARS:

THE FOUR FINANCIAL PILLARS OF BUSINESS

Heather Flack, Government does with those Underpaying or ignoring these Statutory compliance is the glue power and proactive management
Business Leader, Flair taxes, they are a very necessary obligations is a game of Russian that makes your business legally will always win out.
Accounting evil. Your responsibility is to roulette with a department that visible and credible. Ignore it, and
ensure you are not paying any doesn’t have a sense of humour you could be deregistered, fined, In Conclusion: Build the Whole
et’s be more than you need to, and that and holds all the bullets. Build or worse – disqualified from House
honest. you are taking advantage of all tax your people and they will tenders, funding, or big contracts If your business is only built
LWhen benefits available to you and your build your business. You have because you didn’t tick all these on tax returns, you’re missing
most business business. a responsibility to provide an very important boxes. 75% of the foundation. It’s like
owners hear environment that protects only brushing your front teeth
‘financial Here is a different perspective: employees, they are not there Tip: Set reminders or find a firm and wondering why the rest need
compliance’, tax is not just a cost. Handled to take the risk with you, the that does. Granted, you didn’t fillings when you eventually
their minds right, it can be a planning tool same way they don’t get to enjoy start a business to be buried in make it to the dentist.
zoom – timing expenses, structuring the benefits and big profits you paperwork but then make sure
straight to South African Revenue salaries, claiming allowances. may make. you delegate this area wisely. You need to focus on building
Services (SARS) like a meerkat There’s art in the maths. But Tip: Get your ducks (and 4. Management Reporting: smart, strong, well-balanced
spotting a predator. And yes too often, business owners only documents) in a row. Your staff The Underrated Superpower financial homes – with structure,
– taxes are important (ask Al scramble at year-end, throwing will respect you, your business will insight, and maybe a glass of
Capone). But income tax is just receipts like confetti and hoping run smoother, and you’ll avoid Ah, the Cinderella of finance. wine when needed.
one pillar of your financial house. for a miracle. awkward visits from the labour Management reporting is the So next time someone asks
If that’s the only pillar you’re Tip: Tax is not a once-a-year department asking questions you one no one notices… until it if your finances are sorted,
minding, you’re basically trying emergency. It’s a 12-month really don’t want to answer. saves the day. remember it’s not just about
to balance a four-tier wedding strategy. Get ahead, and SARS Monthly management reports SARS. It’s about systems, people,
cake on a broomstick. becomes a partner – not a panic 3. Statutory Compliance: show you the story behind the paperwork… and seeing the full
In the real world of sustainable attack. When done right, a lot of The Admin No One Talks About numbers. Cash flow trends. picture in time to do something
business, four key pillars quietly, doors become open to you, and Share certificates and registers, Margin shifts. Customer about it.
but firmly, hold up the house. when done wrong – you simply Companies and Intellectual patterns. Stock anomalies. It’s Because let’s be honest – no
These pillars are income tax, watch them all close and be Property Commission (CIPC) the dashboard of your business one starts a business just to fill
labour, statutory compliance and slammed in your face. returns, company resolutions, Boeing and yet so many owners in forms. But with the right
(the one you really should value Broad-Based Black Economic are flying blind, wondering financial pillars, you can go
the most) management reporting. 2. Labour: Not Just Payroll Empowerment certificates, why they keep crashing into from chaos to calm… with
Hiring people comes with Annual returns, Beneficial mountains. Flair, of course. 
Let’s break them down, Flair- responsibilities – and no, Ownership submissions – it’s
style. giving someone a desk to sit like a never-ending scroll of Think of it like this: Tax reports
at, a computer to work on, and homework assignments. But tell you what was. Management T: +27 (0)31 207 1572
1. Income Tax: The Necessary Evil reports tell you what is – and M: +27(0)76 555 7529
maybe a branded mug and a unlike high school, you can’t fake E: heather@flairaccounting.co.za
This one gets all the attention, birthday cake doesn’t count as a doctor’s note to get out of them. what could be. Want to scale? W: www.flairaccounting.co.za
kind of like the loud aunt at a labour compliance. We’re talking We see so many clients who have Sell? Sleep peacefully at night?
wedding who’s had too much about Pay As You Earn (PAYE), registered a PTY online and Start here.
bubbly. Every entrepreneur knows Unemployment Insurance think, that’s it – no one issues the Tip: If you’re only seeing
they need to pay tax, and everyone Fund (UIF), Skills Development very important share certificate numbers once a year, you’re
seems to begrudge it. Change Levy, employment contracts, that needs to go with it. This running your business in the
your mindset, taxes are needed leave tracking, and those pesky is like buying a car and never rearview mirror. Bring in
to build and support a well- Department of Labour visits that asking for and collecting the monthly management reports
functioning society. No matter seem to arrive just when you’ve logbook – which is your actual and watch your confidence – and
what your opinion is of what the settled in with a coffee. proof of ownership. profits – grow. Knowledge is

TRUST TERMINATION: WHY IT’S TIME TO ACT

he legal and financial no such thing. A trust that hasn’t benefits. In many cases, the reasons of the admin as possible. Once we With growing regulatory
environment in South been formally terminated is still a for setting up the trust are no longer have the information, we take care pressure and rising costs, the real
TAfrica is evolving, and live trust. Even if it’s not active, it relevant, and the structure simply of the rest.” risk is in doing nothing.
so too is the role of trusts. Once requires full administration.” persists out of inertia. Timelines vary depending on “It’s really the elephant in the
considered a clever tool for estate That means regular accounting, “Many people can’t even how quickly trustees respond and room,” says Hockey. “You know
planning and tax efficiency, trusts compliance with South African remember why the trust was how efficient the Master’s Office you’re not using the trust. You’re
that are no longer active have Revenue Services (SARS), and created,” says Hockey. “They just and SARS are, but a trust can just delaying what needs to be
become costly liabilities. For
trustees and financial advisors, oversight from the Master’s keep putting it off because they typically be terminated within 8 to done. And doing nothing could
the message is clear: if a trust is no Office. And because trusts are assume it’ll be a nightmare to 12 weeks. cost you far more in the future.”
longer serving a purpose, it’s time often viewed as opaque legal close.” Handling the Paper Trail For anyone with an inactive
to close it. vehicles, they are now firmly in the A Simpler Process trust, now is the time to act. The
government’s crosshairs, especially One of the most common tools and services exist to make it
Speaking on a recent Business given the country’s response Thanks to LEMS, trust concerns is missing
Sense webinar, Alan Hockey of to grey listing and financial termination is now far more documentation. Many trustees easier than ever and the risks of
Legal Entity Management Systems transparency demands. streamlined than it used to be. fear they won’t be able to close a waiting are only increasing. 
(LEMS), a firm specialising in trust trust because original documents
terminations, explains the growing “You don’t want to be the target For single trusts, clients can are lost or co-trustees have died or For more info go to www.lemsystems.co.za
urgency. “A trust that’s unused is of the government,” says Hockey. log onto the company’s website, emigrated. But these challenges are
a liability. And it’s becoming more “Especially for something as answer a few questions, and receive not deal-breakers.
of a liability, especially in light of innocuous as a trust just lingering, a ready-to-sign closure pack the
looming legislative changes and not being used. It seems harmless, next day. For financial advisors or “The Master’s Office is
but it attracts attention.”
increased scrutiny from the state.” trustees managing multiple trusts, reasonable,” says Hockey. “They
the process is handled in bulk via
want these trusts closed as much
Cost vs. Benefit SCAN
The Myth of the Dormant Trust spreadsheet submission. as we do. If the intent is clear and QR CODE
Apart from compliance risks, the process is properly followed,
Many trustees believe that if a “There’s nothing more onerous TO SEE
trust isn’t trading or being actively maintaining an inactive trust is than filling out forms,” says they’re usually willing to work
used, it can simply be left dormant. expensive. The professional fees, Hockey. “So we’ve developed a with us.” THE FULL
Not true, says Hockey. “There’s accounting costs, and time involved process that eliminates as much Don’t Delay VIDEO
can quickly outweigh any original

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