Getting one's finances in order is a very challenging task, especially for business owners who have not been keeping track of their business finances. However, it is possible to get your business finances in order with the right knowledge. As an entrepreneur you need to be able to have a clear picture of how your business is going to look 3-5 years from now and that includes planning for your business' financial future.
Compliance is one of the most important elements you need to look at. As a business owner, the proverbial buck stops with you. This means that your business finances are your responsibility regardless of whether you have an accountant or not. You need to comply with SARS in order to avoid certain penalties. We've seen in the media how celebrities like Cassper Nyovest or Somizi have issues with SARS and immediately turn to blame their accountants. As a business owner how would you react if you found out that you accountant hasn't been filing your tax returns and now SARS is after you? Do you have a right to be mad at the accountant or should you be mad at yourself for not taking ownership of your business finances and ensuring that the necessary documents had been filed with SARS? You can answer the question for yourself. There are industry specific compliances and there are general ones for business owners. One such is with the CIPC. Under the Companies' Act of South Africa, you need to submit annual returns. Not submitting the returns for several years in a row could lead to a company being deregistered.
Another factor which concerns entrepreneurs is the tax clearance. As a business owner you need to be tax clear. The lack of this could have several consequences for your business including leading to you not receiving investment into your business as investors look at such factors.
If there is one thing that trips entrepreneurs up the most when it comes to getting their finances in order, it is the lack of record keeping. Record keeping is one of the most important parts of running a business and it ties in with Knowing Your Numbers as a business owner. You do not need to be an accountant. However, you need to know your own business and your own business numbers as though you were an accountant. This can protect your business finances in the long run and it can also ensure that you not only get your business finances in order but that they stay in order.