Starting a Business in South Africa? Here’s Your Financial Checklist

Financial checklist to keep your business on track

So, you’re starting a business in South Africa? Congrats! Now, let’s make sure you don’t land in financial hot water before you even get going. Many entrepreneurs jump in without sorting out the money side of things - until SARS or a lack of cash flow smacks them in the face.

Here’s your financial checklist to keep your business on track from day one.

1. Register Your Business (Unless You Love SARS Surprises)

First things first—make it official. Depending on your setup, you have a few options:

• Sole Proprietor: The easiest and cheapest option. No registration needed, but your personal and business finances are one and the same, meaning you’re personally liable for business debts.

  
  

• Private Company (Pty) Ltd: The most popular choice for serious businesses. Separate legal entity, limited liability, and you’ll need to register with CIPC (Companies and Intellectual Property Commission).

  
  

• Partnership or NPC (Non-Profit Company): If you’re not going solo, these options might work for you.

✅ How to Register:

Choose your company type and submit the required documents or registration on CIPC, we specialise in new company registrations, contact us for a quick and painless new business registration process.

Get a business bank account once you have your registration number.

2. Get Your Tax Affairs in Order (SARS Isn’t Your Friend, But You Can Stay on Their Good Side)

Now that you exist legally, SARS wants to hear from you. Here’s what you need, we can asssit with this:

• Income Tax Registration: Once registered with CIPC you will need to register your SARS eFiling income tax profile. If you’re a sole proprietor, you can also register via SARS eFiling.

  
  

• Provisional Tax: If you are a company or a sole proprietor and don’t earn a fixed salary, you’ll need to pay tax twice a year (February & August).

  
  

• VAT Registration: Required if your turnover exceeds R1 million per year. Optional if you earn over R50,000 but want to claim VAT.

  
  

• PAYE & UIF: If you hire employees, you must register for Pay-As-You-Earn (PAYE) and Unemployment Insurance Fund (UIF) with SARS.

✅ Pro Tip: Set aside a percentage of your income for tax so you’re not scrambling at the last minute.

3. Open a Business Bank Account (Stop Using Your Personal One!)

Mixing personal and business finances is a financial disaster waiting to happen. Open a business bank account to:

• Keep transactions separate (easier accounting, fewer headaches).

  
  

• Look more professional to clients and suppliers.

  
  

• Improve creditworthiness when you need loans or funding.

✅ What You’ll Need:

• Company registration documents

  
  

• Proof of business address

  
  

• ID and tax number

  
  

• Most banks in South Africa (FNB, Standard Bank, Nedbank, ABSA) offer small business accounts - shop around for the best deal.

4. Sort Out Your Accounting System (Before It’s a Mess)

Skipping this step means you’ll be drowning in receipts and spreadsheets later. Your options:

• DIY Accounting: Good for small startups - use software like Xero, QuickBooks, or Sage.

  
  

• Hire an Accountant: If numbers make your head spin, get professional help from day one.

  
  

• Cloud-Based Systems: Automate invoicing, expense tracking, and tax calculations.

✅ Golden Rule: Track every cent from the beginning - it’ll save you thousands in tax deductions later.

5. Budget Like Your Business Depends on It (Because It Does)

Without a budget, you’re just guessing your way through finances. Break it down into:

Fixed Costs:

• Rent & utilities

• Salaries

• Insurance

• Website & software subscriptions

Variable Costs:

• Marketing & advertising

• Office supplies

• Travel expenses

Emergency Fund:

At least 3-6 months’ worth of expenses to cover unexpected shocks.

✅ Tip: Use budgeting tools like EXCEL spreadsheet, or FNB’s Instant Accounting to keep things in check, at BNT we can also guide and assist you through this process.

6. Invoice Like a Pro (So Clients Actually Pay You)

Cash flow is king—if clients aren’t paying you on time, your business is in trouble. Make sure your invoices:

• ✔ Have clear payment terms (e.g., “Due within 7 days”)

  
  

• ✔ Include bank details & VAT number (if registered)

  
  

• ✔ Send automated payment reminders if clients “forget”

✅ Use Accounting Software: Many platforms (like Xero, QuickBooks, and Sage) let you automate invoicing, saving you from awkward follow-ups. We can assit you in choosing the correct accounting package to meet your business needs.

7. Know Your Funding Options (If You Need a Cash Injection)

Starting out with little capital? Consider these funding sources:

• Self-Funding: Using savings (risky, but no debt)

  
  

• Bank Loans: Requires a solid business plan and credit check.

  
  

• Government Grants: Check out the Department of Trade & Industry (DTI) funding programs.

  
  

• Investors: If you’re scaling fast, angel investors or venture capital could help.

✅ Tip: Don’t rely too much on credit - debt can kill your business fast if not managed properly.

8. Protect Your Business with Insurance

One unexpected disaster can wipe out your business overnight. Don’t take the risk - get business insurance for:

• Public Liability (if someone sues you)

  
  

• Key Man, Dread Disease and Disability cover

  
  

• Business Interruption Insurance (for unexpected closures)

  
  

• Cybersecurity Insurance (if you handle customer data)

✅ Tip: Compare policies from companies like OUTsurance, Hollard, or Santam to find the best fit. We also have a strategic relationship with independent financial planners & advisors so we can put you in touch with them should you need guidance in this process.

9. Stay Compliant with SARS (Or Face the Wrath of Penalties)

Once your business is up and running, compliance isn’t optional. Here’s what you need to do:

• ✔ Submit Annual Tax Returns (ITR14 for companies, ITR12 for individuals).

  
  

• ✔ File Provisional Tax (if required) twice a year.

  
  

• ✔ Submit VAT Returns (if VAT-registered).

  
  

• ✔ Ensure Payroll Compliance (PAYE, UIF, and SDL).

✅ Pro Tip: We are experts in compliance so hire BNT to handle this if it feels overwhelming - penalties are no joke and can cost you dearly!

Final Thoughts: Set Yourself Up for Financial Success

Starting a business is exciting, but ignoring the financial side can kill it before it even takes off. Follow this checklist to stay compliant, manage cash flow, and avoid unnecessary stress.

Need expert financial guidance for your new business? BNT is here to help! Contact us today and let’s set your business up for success.