It's no secret that the business environment is tough, particularly for small enterprises where the margins are always a little thin. One late payment from a client can cause consternation, but what happens when that client fails? The chances of one of your major clients collapsing before paying you is very real and sometimes there may not be any warning whatsoever.

Entrepreneurship has been increasingly encouraged by government in the past few years, as the barrier for entry is continuously being lowered to stimulate participation in business. Funding has however proved to be a high hurdle for entrepreneurs.

When South Africa recorded a 32.6 percent unemployment rate a few months ago, the general concept of entrepreneurship, and small business funding, got more attention than usual. The thought is that small-scale entrepreneurs are underfunded due to the large demand for capital and that new entrepreneurs need to demonstrate their likely ability to stay afloat before any cash injections are directed their way. These two considerations are critical in a country where 70 – 80 percent of small businesses fail within 5 years.   

Let’s have a look then at the funding alternatives available to your small business…

Employers in South Africa are now under increased and intensified scrutiny, with SARS and the NPA teaming up in ‘a joint venture to prosecute’, which will initially focus on non-compliant employers - those that do not file their returns and deduct employee taxes and levies without paying these over to SARS.

Whether employing one or a hundred thousand people, companies in South Africa are compelled to deduct employee taxes and levies every month, declare the deductions on a return and pay the amounts over to SARS, with annual reconciliations, creating a substantial administrative and financial burden, accompanied by stiff penalties for non-compliance. 

Find out here how to conduct an audit of your employee taxes to ensure they are accurate and compliant, and when it is time to call in professional assistance.